1. Multi-level marketing definition
Multi-level marketing, also known as network marketing is a popular and promising method to grow a business in a great pace using the abundant affiliate. MLM allows each affiliate invites or recruit others into the network, thus, your business will reach more potential customers through diverse channels and promotion activities.
The basis of Multi-level marketing is demonstrated through the image of a pyramid, where each affiliate invites another to be his/her down line level on the affiliate network system, the more participants get invited, the more products or services can approach their targeted market.
Earnings of ambassadors in the pyramid network derive from two mains sources, the first and possibly the main income is from the commission paid for successful promotion activities that they brought, which can be in form of referral orders, share or other types of engagement made by customers they approached. The second one comes from network commission which bases on purchased brought by their down line distributors.
So the people in the MLM not only try to sell products or service directly to end-user retail consumers but also are incentivized to invite more affiliates to be their down line distributors.
2. How does MLM work on Affiliate marketing by Secomapp?
In Affiliate marketing by Secomapp, each affiliate can invite or recruit unlimited distributors and their network commission will be calculated on the commission of affiliate who directly brought the order (original affiliate) with percentage is set by merchant.
For example, John signs up as an affiliate, then invites Victor, Victor invites Michelle and Michelle invites David. (John => Victor => Michelle => David)
If David brings a referral order with total amount is 1000$ and the commission percentage set to the affiliate program is 10%, then David (Original affiliate) will get that 10% total commission, other affiliates who are with higher levels will receive commission calculated base on the original affiliate commission. If you set:
- Affiliate level 1 (Michelle who invites David) gets 5%,
- Affiliate level 2 (Victor who invites Michelle) gets 5%,
- Affiliate level 3 (John who invites Victor) gets 5%,
Their commissions are calculated as below:
- Original affiliate (David): $1000 x 10%= $100
- Affiliate level 1 (Michelle): $100 x 5%= $5
- Affiliate level 2 (Victor): $100 x 5%= $5
- Affiliate level 3 (John): $100 x 5% =$5
3. Activate MLM feature
To activate Multi-level marketing in Affiliate by Secomapp, visit Multi-level marketing section, and click On Active MLM, we recommend you activate Auto active affiliate feature so any affiliate invited can start their work right after being introduced without waiting for you to review (To activate that feature, visit Settings and click on Auto active affiliate)
Network commission can be set in percentage or flat rate, if it is in percentage, the amount will be based on the commission of the original affiliate. Merchant can add up to 10 levels, in case the real level is higher than settings, affiliate with the most remoted relationship with the original one will not get network commission.
4. How do affiliates recommend others?
Each affiliate who is active will get a network link to invite others (in case MLM feature is activated)
If other participants click to this link and register as a new affiliate, they will be considered as the down line distributor with one level lower than the one who introduced,
The performance of the down line affiliate will be updated on merchant’s page and upline affiliate’s page.
5. How MLM is displayed?
In case a referral order is made thanks to an ambassador in the MLM network, order commission for that original affiliate and network commission for the upline affiliate will be displayed on Referral section.
There would be a small note with “+” below the original affiliate commission, which is network commission amount, merchant can see its details by clicking on the eye icon on Network column, commissions for related affiliates will be displayed including their level.
On payment, figures are listed by affiliate total commission, so you can click See referrals to observe their detail incomes including direct order commission (Referral) and network commission (Network) in order to evaluate their performance.
Payment is made manually so after you send payment to affiliate, click Mark as paid to let the affiliates know.
Each affiliate can also keep track of their commission amount, they will see their down line distributor performance and their network commission on Network tab on Affiliate page to see whether their team is bringing them any interest.
Here is a brief instruction of MLM feature in Affiliate by Secomapp. Let try it out and tell us how you feel.
Urge your affiliates to start their promotion plan now and wait for the sustainable ambassador network to spread your business. Should you need any help, contact firstname.lastname@example.org for prompt support.