What are Distributors?

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.

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.