A multi-level affiliate network is where existing affiliates can recruit newer affiliates under them. In such an affiliate network, getting more affiliates into the program becomes straightforward.
It also gives existing affiliates a financial incentive to recruit newer affiliates under them. They earn a network commission on the referral sales that are brought in by affiliates under them.
How a multi-level affiliate network helps merchants:
Merchants have been increasingly going for a multi-level affiliate network strategy for their affiliate programs. It has also made it easier for them to get more affiliates into their programs without spending too much time or money.
A big problem that new merchants who venture into affiliate marketing faces are getting affiliates into their program. A multi-level affiliate network essentially solves this issue. In such a system, existing affiliates entrusted with recruiting newer affiliates.
How a multi-level affiliate network works:
The affiliate who is recruiting, in this case, becomes a parent affiliate, and the affiliates that they recruit become the children or downline affiliates. Any referral sale that the children/downline affiliates bring to the store, in addition to the sales commission they earn, their parent/upline affiliates will also receive a network commission on that sale.
The opportunity of earning a network commission on sales brought in by downline affiliates becomes a financial incentive for existing affiliates to further recruit more affiliates under them.
Setting up a multi-level affiliate network
A multi-level affiliate network has two parts, the number of levels and the commission rate associated with them. The number of levels here refers to the affiliates who can recruit affiliates under them. If an affiliate network, for example, has five levels then the affiliate who is at the fifth level will not be able to recruit affiliates. Also, the network commission for a referral sale brought in by the level five affiliates will get distributed to all the upline affiliates in the network.
The second part of the affiliate network is the commission rate that is associated with each level. The commission rate of each level is the one that the upline affiliate earns when a referral sale takes place downline. The network commission rate should be fixed with careful consideration so that it doesn’t eat into the merchant’s margins on the sale.
Also, the choice of commission calculation method where the level commission is either calculated as the percentage of the order value or the percentage of the sales commission must be given special consideration. Additional settings, such as recruitment bonuses, the option to enable or disable the ability of an affiliate to recruit, are also desirable. However, these options can vary depending upon the affiliate marketing service that a merchant chooses.
Finally, in conclusion, we can say that the multi-level affiliate network provides various advantages to merchants, especially to the ones who are struggling with getting affiliates to recruit into their program. It overall helps an affiliate program to grow further, and also brings in better performance results.
The GoAffPro app offers merchants with the option to set up their multi-level affiliate network in an instant. It provides merchants with the option to set the levels and commission of the affiliate network. Additionally, it also offers features such as a choice of the commission calculation method, setting up a recruitment bonus, and various other customization options. Check out the app and create your multi-level affiliate network: GoAffPro