diagram-subtaskMultiple-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


⚙️ 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


✅ 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.


📊 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

The Anna shares affiliate promote link with customers > customers purchase products via that link

Order details

  • Order total: $100

  • Campaign commission for original affiliate: 10%

➡️ Anna earns: $100 × 10% = $10

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:

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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