MLM, multi-level affiliate marketing, is usually named as multi-tier affiliate marketing, sub-affiliates, or network marketing. MLM program is free to join. Affiliates get a commission when they make a sale, as well as when sub-affiliates under them make sales. It is a marketing strategy that existing affiliates are incentivized to recruit new affiliates.
The existing affiliates earn a network commission on the sales made by affiliates that under them.
How to Get Started with MLM Program?
In the beginning, affiliates promote products using their affiliate links on their sites, they can share the links to sell products to their friends and contacts, sometimes, we called sub-affiliates. If there is a sub-affiliate who gets a referral sale, the parent affiliate will also earn a network commission on it (you can set it up the levels and commissions for the network). Subsequently, when they make sales (or recruit further sub-affiliates), the parent affiliate gets paid a leveraged, passive income through no further effort on his part. Depending on the number of levels the MLA people incorporates, the potential for profit could be huge. So on and so forth, a pyramid structure appears, impressions of products are enlarged from contacts to next. Let’s figure out it more clearly in the graph below.
From the above graph, there are 3 levels of affiliating network. Based on product selling, level 1 invites level 2 to join, and level 2 extends to level 3. If a sub-affiliate on the third level gets a referral sale, he/she will get a commission from the sold price. Meanwhile, the upper affiliates on the level 2 and 1 who invite him/her will get a thankful commission. Regularly, there will be more levels to expand downwards. The affiliate group will be enlarged like a giant pyramid with a hierarchy extension. But will that cause problems that sub-affiliates lose control in the next levels. ViparSpectra MLM provides a solution that is we set three levels into a section. Except that the affiliate on level 3 who brings orders gets commissions from the sale, the upper 2 levels affiliates who invite subsequently also get commissions. We only take 3 levels as the limitation of hierarchy for the sake of keeping the program more controllable.
How to Calculate Commissions?
Commissions must be the most incentive factor that all affiliates concern about. But how to calculate fairly is much more essential. In ViparSpectra Multi-level Affiliate Marketing program, we provide a more fair and transparent way of commission distribution. Please follow and see the structures below.
There is an example from the above structure. If Tom signs up as an affiliate, then invites Susan, and Susan invites Daniel. Daniel brings a referral order with a total amount that is 1000$ and the commission percentage set to the affiliate program is 10% on order sales, then Daniel (Original affiliate) will get the 10% total commission, other affiliates who are with higher levels will get commissions calculated on program commission. Usually, we set the commission percentage as below:
-- Commission level 3 (Daniel who brings a referral order) gets 10% on order sales,
-- Commission level 2 (Susan who invites Daniel) gets 10% on Daniel’s commission,
-- Commission level 1 (Tom who invites Susan) gets 8% on Daniel’s commission.
How Affiliates Recommend Others?
As long as the MLM program starts, each affiliate will get a network link to invite others. We can say, they are parent affiliates. If some other participants click on the network link and register into the affiliate program, they will become sub-affiliate (or sub-distributor) with one level lower than the one who was introduced.
The performance of the sub-affiliate will be updated on the merchant’s page and parent affiliate’s page.
Know More About Payment
Currently, we provide commissions via Paypal or offer gift cards for product buying.
Very thankful for finishing reading about the MLM’s introduction. Welcome to join us and become a multi-level affiliate. Stay and keep on going with more fortune!