Rebate agreements

Whole-volume vs stepped rebates

The key difference in ClaimDS slabs — a volume slab pays one rate on all the volume, while stepped pays each band's rate only on the volume in that band.

Volume slab and stepped look almost identical when you set them up — the same tiers, the same thresholds. But they pay out very differently, and confusing the two is the most common rebate modelling mistake. Here's the difference, with numbers.

Volume slab — one rate on everything

With a volume slab, you find the band the partner's total volume lands in, and that band's rate applies to all of their volume.

Say the slabs are ₹0–5L at 1%, ₹5–15L at 2%, and ₹15L+ at 3%. A partner who does ₹13L lands in the middle band, so they earn 2% on the whole ₹13L = ₹26,000. Crossing into a band lifts the rate on everything, not just the part above the threshold.

Stepped — each band on its own

With stepped, you walk through the bands and apply each band's rate only to the volume that falls within it, then add them up. Stepped works on quantity with a per-unit rate.

Say the slabs are the first 100 units at ₹2/unit, the next 100 at ₹2.50, and anything beyond at ₹3. A partner who buys 250 units earns 100 × ₹2 plus 100 × ₹2.50 plus 50 × ₹3 = ₹600 — not the ₹750 you'd get if the top rate applied to all 250.

Tiered — a rate fixed to the partner

Tiered is different again. The rate isn't driven by volume at all — it comes from the tier the partner is assigned to on their enrolment (say Gold, Silver, Bronze), and that rate applies to their whole volume. Two partners doing the same volume can earn different rates because they're in different tiers.

How to read a threshold

In every slab basis, a threshold is the top of its band — the bottom is the previous band's top (or zero for the first). The highest band is open-ended, so volume beyond it still earns. Leaving an accidental gap between bands is a common setup slip, so check the bands join up.

Still stuck?

Book a demo and we'll walk through it on your own data — or just talk to us.

Whole-volume vs stepped rebates — ClaimDS