Everyone has the mandatory alliance flag. The flag you use in official matches, the flag that shows your rank in the alliance, as well as your wins for the alliances. but all alliance member flags are unique, to a point. Each rank is given a specific color, and with each ALLIANCE win you are awarded a notch to that flag. I will give examples below. The notchs are to always be in gold.
The Notch -
The notch represents what you have done for the alliance. Each notch represents an alliance match won. In order to qualify for a notch, you have to be in an official alliance match, and you have to get it approved by an Admiral. Once it is approved, you will be allowed to fly it on your new flag.
How you get a Notch -
You must be in an official alliance match. Either an internal game, or a match against another alliance. Then you must confirm it with an Admiral who will make sure you deserve the notch.
Exceptions -
If in the match you did not support your team, you went AI (Let the computer take over) or did not follow a command from a superior (Alliance VS. Alliance only) then you can be denied the notch. It is up to the Admirals to decided if you played your part, and deserve to have a notch.
RanksNo rank (No command)
This flag is for those who are not given a rank (A majority of the alliance).
This just means you are not authority, but you may gain notchs.
Commander (3rd in command)
This shows a commander, with Zero alliance wins. So no notchs.
Red is the color of commanders.
Captain (2nd in command)
This shows a captain, with three alliance wins. So there are three notchs.
Blue is the color of the captain.
Admiral (leader)
This shows an Admiral, with 2 alliance wins. So there are two notchs.
Gold is the color of the Admiral.
Sorry about the flag sizes, i cant really do anything about them. I got them from other post's on the forums. This is the basic guide for changing your flag with notch'. Remember, Admirals need to confirm that you where awarded a notch. All alliance games will more then likely have a specific post describing how the game went, and who gets notch's and such.