Multi Level Marketing

An explanation on how does the Multi Level Marketing work in the GoAffPro app

Multi-level marketing (MLM) also know as network or referral 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, the existing employees are also paid a percentage of commission of their recruit's sale.

Multi Level Marketing

GoAffPro provides you with an option to have a multi-tier affiliate program, where commission gets distributed among the hierarchical referral network. You can set up multiple level of affiliates, where your affiliates can recruit newer affiliates.

This helps in expanding your affiliate program. This lets you get more affiliates into your program.

The multi-level marketing feature is based on the binary compensation sytem.

For Example, here your affiliates can recruit sub-affiliates and those sub-affiliates further down recruit more affiliates. This creates a hierarchial network, where any referred sale down the line, commissions or compensation is provided to affiliates up the line of the hierarchy.

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

Here you can enable the Multi Level Marketing feature for your affiliate program by clicking in the enable button.

Multi Level Marketing

In the Multi Level Marketing section, you can enable the Multi Level feature, this will allow your affiliates to recruit sub-affiliates.

To check out the network of your affiliates, you can click on Geneology (Full Network)

Here you will be able to see the network of your affiliates and sub-affiliates.

For Example, here "Affiliate Name" is the parent affiliate for "Sub-Affiliate Name". Therefore, any sale that takes place using the "Sub-Affiliate Name"s referral, the "Affiliate Name" will receive a commission on it as well.

Levels and Commissions

The Levels and Commissions feature can be used to set up the number of tier and commission level for affiliates. By setting up number of level, your affiliates will then be restricted to only recruiting sub-affiliates only up to a particular level and you can also set the commission rate for different levels so as to make recruiting sub-affiliates profitable for your affiliates.

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 set the number of levels of affiliates and the commission percentage for each level of the affiliate. There is also an example section, that will showcase, how the multi level system will work with the level and commission rates you set up.

Setup Commission Level

To set the number of levels, you can select the levels in the drop down menu. If you set up 1 level, that will allow your affiliates to have sub-affiliates, if you set the number of levels to 2, then your sub-affiliates can further recruit an affiliate and so on.

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 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 affiliate. Here we set up the commission rates for Level 1 as 10 percent and Level 2 as 5 percent.

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If a direct sale takes place, where the referral used was of Partner 2, then Partner 3 will not be getting any commission, but Partner 1 will get the rate of commission that has been set.

If a sale takes place, where a customer makes a purchase on your store using the referral link of Partner 3, then Partner 3 gets the full commission on the sale, which here is $30. Partner 2 who recruited Partner 3 will receive 10 percent of the sale commission and Partner 1 who recruited Partner 2 will get 5 percent of the sale 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.

Playground

The Playground section can be used to test and learn, on how an MLM network will work. Playground gives you an option to first test out how the multi level system you have setup, will work out for you. So that you can make suitable changes and tweak the system to work according to your preference.

Playground

To see how Playground helps you in learning about your MLM network look at the example below:

Here the parameters we have set up are, number of partner in the chain (levels) to 3. The partner who's 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. Also the commission rate that has been set up is 10 percent for Level 1 and 5 percent for Level 2 (you can set the commission rates in the Levels and Commissions section)

Dynamic Calculation

Here, we can see that the commission earned by Partner C who's referral link was used to make the purchase gets the full sale commission of $100. Partner B, who is the parent affiliate for Partner C will earn 10 percent of the sale commission, which is $10 and Partner A will get 5 percent of the sale commission which is $5.

Simple Calculation

In Simple calculation, the commission that Partner A ans Partner B will recieve 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 rate set for him but Partner B gets 10 percent of the total order value as commission which is $100 and Partner A gets 5 percent of the total order value as commission, that is $50.

Settings

In the Settings section, you have options such as the option to show the sponsor on the Signup Page of the affiliate portal, the sponsor is the parent affiliate who referred the potential affiliate to the create account page of your affiliate portal.

Settings

Here you can select, which Level Commission Calculation Method you want to choose. You can choose from the option of Dynamic calculation method and Simple calculation method. You also have the option to apply the Level Commission even when the sale commission is nil.

Before selecting the type of Level Commission Calculation Method to use, check out how both Dynamic and Simple calculation method work in the Playground section.