
Distributor – A set of conditions that specify how and when collaborators earn rewards based on their historical performance.
Introduction
Distributors track a collaborator’s contributions over time, and rewards them based on that performance after a set period of time has passed. Unlike programs, distributors do not trigger when someone purchases something on your site. Instead, distributors track aggregate data over time, and then use that data to create obligations on a set schedule.
Distributors allow you to set up systems that track performance and reward collaborators based on their historical performance. Since they are not bound to a transaction, they allow you to create several different incentive structures that are not possible with programs.
There’s no real limit to what a distribution can do, as long as you can define three key things:
- What measurable things they need to do in-order to receive credit.
- How much you’re going to pay them when they succeed.
- You can calculate the reward on a schedule
In other words, as long as you can measure the action they’re taking, and you can calculate how much you’re going to pay your collaborators, you can make a distribution!
Common Distribution Types
Most distributions can be defined by two different types – bonuses, and profit shares.
Profit Share Program
Collaborators are paid a share of sales based on their performance. For example, a course platform can pay their course creators based on how many members complete that creator’s course.
Bonus Program
Pays the top performing collaborator(s) a bonus. For example, you could pay a bonus to the affiliate who generated the most sales last month, or pay a blogger for generating the most visits to their content last month.
The Lifecycle of a Distribution
Each program you create and manage goes through a series of structured stages, from the initial engagement with collaborators to the final distribution of rewards. Let’s walk through each phase of a program’s lifecycle, detailing the critical steps involved.
A Distribution is Scheduled
A date in the future is set for obligations from the distributor is created.
Distributor Tracks Metrics and Reward Pool
As time passes, the distributor monitors your site, tracking collaborator performance, and transactions to distribute.
Distribution Triggers
When a sufficient amount of time has passed, the distribution triggers.
Obligations are Created
Once conversions are approved, obligations for each collaborator are calculated. The amount is based on the agreed terms of the program, such as commissions or royalties.
Metrics and Reward Pool are Reset
As soon as the obligations are created, all metrics and the reward pool are invalidated, resetting the distributor to repeat the process all over again.
Collaborators Get Paid
Finally, a fulfillment’s payouts are processed and distributed to the collaborators. Once the payments are made, the payouts are marked as “paid,” completing the lifecycle.
Incentive Structures
An incentive structure defines who gets paid whenever a distribution triggers. Some incentive structures dictate that only one collaborator wins, while others can dictate that many collaborators win. In cases where many collaborators win, the program structure also defines how the reward pool is divided.
Incentive Structure Types
Shared Engagement Pool
The “Shared Engagement Pool” is a program structure where rewards are evenly divided among all collaborators who have interacted with a customer throughout their journey.
Performance Weighted Pool
The Performance Weighted Pool is a program structure where rewards are distributed among all collaborators based on their performance relative to each other.
Top Score Wins
The Performance Weighted Pool is a program structure where the person with the top engagement score receives the entire reward.
Tracking Events
Metric tracking events run over the course of a distribution, and track
Incentive Structure Types
Course Completed
Whenever someone completes a course that is owned by a collaborator, the Course Completed event is triggered.
Lesson Completed
Whenever someone completes a lesson in a course that is owned by a collaborator, the Lesson Completed event is triggered.
Collaborator Product Sold
Whenever a collaborator promotes your products using a unique coupon code, and a customer uses this code to make a purchase, the “Coupon Code Used” event is triggered.
Blog Post Visited
Whenever a collaborator promotes your products using a unique coupon code, and a customer uses this code to make a purchase, the “Coupon Code Used” event is triggered.
Coupon Code Used
Whenever a collaborator promotes your products using a unique coupon code, and a customer uses this code to make a purchase, the “Coupon Code Used” event is triggered.
Site Visited
The “Site Visited” event is designed to reward collaborators, typically affiliates, whenever a potential customer visits your website through their unique affiliate link.