# Multiple-Level Marketing (MLM)

Multiple-Level Marketing (MLM) allows affiliates to earn **extra commissions** when they invite other affiliates into your program.

In short:

* One affiliate makes a sale
* That affiliate earns the main commission
* The affiliates **who invited them** earn **a percentage of that commission**

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### ⚙️ Steps to set up

1. To activate the multi level marketing in the app, you need to create a **campaign** first. 
2. In the app > click **Settings** > **Multi-level marketing** > select number of level you want to set up
3. Enter the commission amount of each level  
4. Click **Save**

<figure><img src="https://2078839253-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FvdV1PFu8mN1B3K5QZCrx%2Fuploads%2FO8vNR7cfo1hlwBTqvXUg%2F2024-03-19_17-07-21.png?alt=media&#x26;token=70305d51-52d2-4c57-928c-b41e9aaa605c" alt=""><figcaption></figcaption></figure>

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### ✅ How MLM Works

MLM commissions are not calculated from the order value directly.\
They are calculated as a percentage of the original affiliate’s commission.

Think of it like this:

> **Customer order → Original affiliate earns commission → Upline affiliates earn a share of that commission**

Each “level” is one step higher in the referral chain.

#### Key Roles in MLM

* **Original affiliate**\
  The affiliate who directly refers the customer and generates the sale.
* **Level 1 affiliate**\
  The person who invited the original affiliate.
* **Level 2 affiliate**\
  The person who invited the Level 1 affiliate.
* **Level 3 affiliate**\
  The person who invited the Level 2 affiliate.

Each level earns a smaller percentage, based on your MLM settings.

<figure><img src="https://2078839253-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FvdV1PFu8mN1B3K5QZCrx%2Fuploads%2FrdHu8D0i3blHd44SJ40X%2Fimage.png?alt=media&#x26;token=2e1b47d6-cedd-4bba-a94e-b713cc48bdb1" alt=""><figcaption></figcaption></figure>

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#### 📊 Example: 4-Level MLM Commission Breakdown

Let’s walk through a real example step by step.

**Affiliate structure**

You have 4 affiliates connected like this:

1. **Anna** – Original affiliate
   * Directly registered to the campaign
   * Refers the customer
2. **John** – Sub-affiliate (Level 1)
   * Invited Anna
3. **Mike** – Sub-affiliate (Level 2)
   * Invited John
4. **Jim** – Sub-affiliate (Level 3)
   * Invited Mike

<figure><img src="https://2078839253-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FvdV1PFu8mN1B3K5QZCrx%2Fuploads%2FR3ahtWExIES8fZvbOXUq%2F2024-03-20_14-49-54.png?alt=media&#x26;token=607ae6c6-ffff-46e3-a33b-240f34a64910" alt=""><figcaption></figcaption></figure>

The Anna shares affiliate promote link with customers > customers purchase products via that link&#x20;

<figure><img src="https://2078839253-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FvdV1PFu8mN1B3K5QZCrx%2Fuploads%2FFmFzZkDQVjaY1B8GSpG1%2F2024-03-20_13-51-50.png?alt=media&#x26;token=a7cb7e4a-6c4d-458f-9bfa-7fc775156265" alt=""><figcaption></figcaption></figure>

**Order details**

* Order total: **$100**
* Campaign commission for original affiliate: **10%**

➡️ Anna earns:\
`$100 × 10% = $10`&#x20;

<figure><img src="https://2078839253-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FvdV1PFu8mN1B3K5QZCrx%2Fuploads%2F3KYLTfdqVAnB9hkhqtUi%2F2024-03-20_13-59-46.png?alt=media&#x26;token=fa141a7a-55ad-4c2f-8b2d-a4e4d33da79d" alt=""><figcaption></figcaption></figure>

#### MLM Commission Distribution

Now MLM commissions are calculated **from Anna’s $10 commission**, not from the $100 order.

Level 1 – John

* Commission rate: 10% of Anna’s commission
* Calculation:\
  `$10 × 10% = $1`

➡️ John earns $1

***

Level 2 – Mike

* Commission rate: 5% of Anna’s commission
* Calculation:\
  `$10 × 5% = $0.50`

➡️ Mike earns $0.50

***

Level 3 – Jim

* Commission rate: 2% of Anna’s commission
* Calculation:\
  `$10 × 2% = $0.20`

➡️ Jim earns $0.20

Result:&#x20;

| Affiliate | Level    | Earns From        | Commission |
| --------- | -------- | ----------------- | ---------- |
| Anna      | Original | Order value       | $10.00     |
| John      | Level 1  | Anna’s commission | $1.00      |
| Mike      | Level 2  | Anna’s commission | $0.50      |
| Jim       | Level 3  | Anna’s commission | $0.20      |

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#### **Still need support?**

If you still need help, please feel free to contact us at <hi@tipo.io>. We’ll be happy to assist you further.