GoAffPro

GoAffPro offers merchants the option to set up a multi-level network for their affiliate program. In a multi-level affiliate network, existing affiliates can recruit newer affiliates under them. The parent affiliate will earn a network commission on the referrals made by the recruited affiliates. The network commission becomes an incentive for existing affiliates to expand their network by recruiting more affiliates under them.

Multi-level marketing also helps merchants who are struggling to find affiliates for their program. In the multi-level system, the job of recruiting new affiliates gets delegated to existing affiliates. A multi-level affiliate network can considerably increase an affiliate program’s performance.

It is essential to know how the multi-level network works and how the commission distribution is done through different levels.

For example: If you have a network A > B > C. Where affiliate A has recruited affiliate B and affiliate B has further recruited affiliate C.

Here, we take a look at how the commission distribution will work:

If affiliate C refers the sale:

Affiliate C will earn the regular commission, affiliate B will earn the level-1 commission, and affiliate A will earn the level-2 commission.

If affiliate B refers the sale:

Affiliate B will earn the regular commission, and affiliate A will earn the level-1 commission.

As per the above examples, it can be observed that the immediate parent of the affiliate (who refers the sale) is the one who earns the level-1 commission. This is generally how the commission distribution works in the multi-level affiliate network.

Another significant aspect of the multi-level affiliate network is the network commission. It is the commission that the upline or parent affiliates earn on the sales that are referred by their downline affiliates.

There are two methods of calculating the network commission:

In the simple method, the network commission is calculated as the percentage of the order value.

For example: If the order value is $100, default commission is 10%, level-1 commission is 5% and the level-2 commission is 2%.

Here, the affiliate who refers the sale will earn $10 (10%), the level-1 affiliate will earn $5, and the level-2 affiliate will earn $2.

In the dynamic method, the network commission is calculated as the percentage of the sale commission.

For example: If the order value is $100, default commission is 10%, level-1 commission is 5% and the level-2 commission is 2%.

Here, the affiliate who refers the sale will earn $10 (10%), the level-1 affiliate will earn $0.5, and the level-2 affiliate will earn $0.2.

The level commission, in this case, is calculated as the percentage of the commission that the affiliate (who refers) the sale earns.

Broadly, the commission distribution and the commission calculation are the two integral parts of the multi-level affiliate network. Merchants should carefully consider these while setting up the multi-level system for their affiliate program.

GoAffPro provides merchants with the option to set up their own multi-level network for their affiliate program. Options such as different commission calculation methods, setting up downlines as customers, and more, allows merchants to tailor it as per their requirements. Check out the app: GoAffPro