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Multi Level Marketing
How does the Multi Level Marketing work in the GoAffPro app
Multi-level marketing (MLM) also known as network marketing is a type of marketing strategy where a company encourages existing employees or distributors to recruit new employees for the sale of their products or services. In addition to the money made by existing employees on direct sales to customers, they are also paid a percentage of the commission of their recruit's sale.
Multi Level Marketing
GoAffPro provides you with an option to set up a multi-level affiliate network, where commission gets distributed among the hierarchical referral network. It helps in expanding your affiliate program by getting more affiliates.
- The unilevel structure is the default configuration.
- You can switch to the forced matrix structure from the Multi Level > Recruitment Mode section and set your matrix width and depth (for example, a 3x5 matrix).
- To set a binary configuration, you can set the width as two and keep the depth option empty.
For example, here your affiliates can recruit newer affiliates (downlines) under them and those downlines further down can recruit more affiliates. It creates a hierarchical network, where for any sale referred by downline affiliates, a commission is provided to upline/parent affiliates in the network.
Multi Level tab
To set up multi-level marketing for your affiliate program, you can go to the Multi-Level tab in the admin panel.
Enable Multi Level Marketing
In the Multi-Level Marketing section, you can enable the multi-level option. This will allow your affiliates to recruit sub-affiliates under them.
Multi Level Marketing
Here, you will be able to see the network of your affiliates and sub-affiliates.
Geneology
For example, here "Affiliate Name" is the parent affiliate of "Sub-Affiliate Name".
- "Affiliate Name" is called the parent affiliate.
- "Sub-Affiliate Name" is called the downline affiliate.
For any sale that takes place using the sub-affiliate's referral, the parent affiliate will earn a network commission on it as well.
The Levels and Commissions option can be used to set up the number of levels in the network and commission for each level. The number of levels dictates how the commission gets distributed among the affiliate in the network.
Levels and Commissions
To set up the level and commission for your affiliate program, click on Change.
In the Setup Commission Level section, you can select the number of levels and then set the commission percentage for each level.
Setup Commission Level
To set the number of levels, you can select the levels in the drop-down menu.
Number of Levels
For example, here we set the number of levels to 2. We will have the parent affiliate called "Partner 1" who will have a sub-affiliate below him called "Partner 2" and further down we will also have another affiliate called "Partner 3."
In the Commission Per Level section, you can set up the commission rates for each level of the network.
Commission per level
For example: Here we set up the commission rates for Level 1 as 10 percent and Level 2 as 5 percent.
If Partner 3 referred the sale, they will earn the referral commission. Partner 2 will earn the level 1 commission and Partner 1 will earn the level 2 commission
The commission that Partner 1 and Partner 2 will receive will not be deducted from Partner 3's commission but will be provided to them separately.
The Playground section can be used to test and learn, how the MLM network will work. The playground gives you the option to test out how the multi-level system that has been set up will distribute commissions in the network.
Playground
Here, the parameters that have been set are, the number of partners in the chain (levels) to 3. The partner whose referral link was used to make the purchase is Partner C. We have two types of calculation methods, Dynamic and Simple, for this example, we will choose the dynamic calculation method.
The commission for the sale is $100. The level commissions that have been set up are 10 percent for Level 1 and 5 percent for Level 2 (you can set the commission rates in the Levels and Commissions section).
Here, we can see that the commission earned by Partner C whose referral link was used to make the purchase gets the full sale commission of $100. Partner B will earn 10 percent (level 1) of the sale commission, which is $10 and Partner A will get 5 percent of the sale commission which is $5.
Dynamic Calculation
In the Simple calculation method, the commission that Partner A and Partner B will receive will be calculated using the order value instead of the total sale commission. Here, we set the order value to $1000 in the parameters. Now Partner C will receive the commission according to the referral commission rate set for him, Partner B gets 10 percent (level 1) of the total order value as commission which is $100 and Partner A gets 5 percent (level 2) of the total order value as commission, which is $50.
Simple Calculation
In the Settings section, you have options such as showing the sponsor on the signup page of the affiliate portal, the sponsor is the parent affiliate who referred the downline affiliate to the signup page of the affiliate portal.
Settings
Here you can select, which Level Commission Calculation Method you want to choose. You can choose either the dynamic calculation method or the simple calculation method. You also have the option to apply the Level Commission even when the sale commission is nil.
You can also choose to enable/disable the multi-level network functionality by default in MLM Availability for Affiliates. There is also the option to set downline affiliates as customers of parent affiliates. You can even set up a recruitment bonus, that will be given to affiliates when they recruit newer affiliates under them.
Last modified 4mo ago