Q: F/U Question to MLM Potential
Hi Ayo, In a two-tier affiliate program, suppose:
Owner sets John (Level 1) to earn 25% commission on direct referrals.
John refers Martha (Level 2), who earns 10% commission on her referrals.
If Martha then refers Larry, how does the system classify Larry’s tier?
Would Larry become Level 1 under Martha, causing John to earn 10% of Larry’s activity?
Or is Larry a Level 3, outside pay structure?
Ayo_PushLapGrowth
Edited Jun 3, 2025A: Hey,
When setting up MLM, it has nothing to do with the commission rate of an affiliate, it only has to do with what percentage of their downline's earning they earn.
Commission rates are usually set up in commission plans. So for example:
You've setup this:
Level 0 (original affiliate who referred the customer, gets full commission from their commission plan, let's say 50% of the total amount a customer pays)
Level 1 (the affiliate who referred the level 0 affiliate, gets 25% of what level 0 affiliate gets, which comes from an extra payment from you)
Level 2 (the affiliate who referred the level 1 affiliate, gets 10% of what level 0 affiliate gets, which will also be an extra payment)
John is an affiliate, and he refers Martha, Martha refers Larry and Larry refers customer A.
Customer A pays $100
In this scenario:
- Larry is the level 0 affiliate, since he referred customer A, and based on their commission plan, he gets 50% of the amount paid, so Larry will be awarded with $50
- Martha is the level 1 affiliate, since she referred Larry, and she gets 25% of what Larry gets, so she gets an extra $12.5
- John is the level 2 affiliate, since he referred Martha, and he gets 10% of how much Larry gets, so he gets an extra $5
Thus, in this transaction, you will payout $50 + $12.5 + $5 = $67.5 in commissions and you will be left with $32.5 in profit.
Thanks
RENEWRENEWPLUSThe Scenario... it all makes sense, however, I'd like to know- does this scenario play out even 12 levels deep, while everyone above Larry is ineligible for commission due to them already experiencing this, the two-level deep affiliate plan?
Any affiliate can refer another affiliate, but the commissions can be given only 2-levels deep, no farther than that
107749355883350469771Is it possible to give a flat fee, for example if affiliate 1, registers affiliate 2 in to the affiliate program and affiliate 2 makes a sale than affiliate 1 gets for example a flat 10$ fee? Also is it possible to get MLM as an additonal add-on for tier 3 and what would be the price for that?