Introduction
Purpose: This article outlines the types of compensation available in SocialLadder for ambassadors who drive referrals and how to strategically leverage them to maximize engagement.
Context: Ambassadors can drive referrals such as sales, lead generation or app downloads, and get compensated per referral. You can leverage points, cash or rewards as compensation.
Requirement
Connector Requirements: You’ll need a properly configured connector to your store or website to track ambassadors' conversions and tie compensation to them.
Overview
When ambassadors drive referrals—whether for sales, lead generation, or app downloads—you need to incentivize them effectively. SocialLadder offers several types of compensation, each with distinct strategic advantages. Choosing the right one isn’t just about rewarding behavior—it’s about shaping the behavior that drives the most value for your brand.
Here’s a breakdown of available compensation types, with insights on when and why to use them:
Points-Based Compensation
Options:
Points per dollar spent
Fixed points per conversion.
Strategy:
Great for brands looking to gamify their program and build long-term loyalty.
Points can accumulate toward larger rewards, keeping ambassadors engaged over time.
Works well if you want to avoid immediate cash payouts and focus on community-building.
Cash Compensation
Options:
Fixed dollar amount per conversion
Percentage of the sale.
Strategy:
Cash incentives (flat-rate or percentage) deliver instant gratification, appealing to highly transactional ambassadors.
Percentage-based rewards align ambassador motivation with higher-value referrals, which can boost average order value. However, they also come with more financial risk if not capped.
Product Rewards
Option: Specific product (e.g., $10 discount voucher).
Strategy:
Offering product-based rewards is a win-win for consumer brands—it promotes your products while compensating ambassadors.
This method can be particularly effective for lifestyle and beauty brands where product sampling drives further social proof and user-generated content.
Tiered Commission Structures
Option: Customizable rules based on sales volume, ambassador segment, or milestones.
Strategy:
Use commission tiers to reward top performers.
This approach adds sophistication and drives competition within your ambassador community.
Make it simple. Ensure your rules are clear and manageable, or you’ll create confusion and frustration.
Best Practices
Ambassador Communication: Be crystal clear about how compensation works. Include these details in onboarding materials, landing pages, and outreach campaigns to avoid misaligned expectations.
Avoid Self-Conversions: SocialLadder lets you block ambassadors from earning commissions on their own purchases, which can prevent abuse.