Home Forums Plugin Support AffiliateWP MLM Setting up indirect commission percentages

1 reply, 2 voices Last updated by  Christian Freeman 2 months ago
  • kimalbee

    I have a structure that will likely only be 2 levels deep – a parent and the affiliates they sign up — it could go one more level if those first level people enlist others on their team.

    If I set up 2 levels deep — meaning parent level > level 1 > level 2 — and the sub levels can be as wide as they sign people up — so I do not need a forced matrix… then I also must set up the indirect fees that get applied, correct?

    So if I have a total of 50% that will be paid out as an affiliate (across all levels) – the parent level will get full 50% because there are no indirect fees.

    Level 1 will get 40% and level 0 will be 10% indirect payout.

    Level 2 will get 30% and level 1 will get 10% payout and level 0 will get 10% payout.

    How do I set this up within the AffiliateWP MLM setup?

    Thanks for your help!

  • Christian Freeman

    Hey Kim,

    In Affiliates > Settings > MLM, you should set the Width to 0, leave Forced Matrix disabled, set the Depth to 2 (Allowing 2 Levels of Sub Affiliates for each Parent), and ensure that Cycles is set to 1 (the default).

    Then, in your Indirect Referral Rates, set it to 10%. You can also setup your Per-Level Rates for both Levels and set that to 10 for good measure.

    You will need to set the Direct Referral Rate to 30% or 40% in Affiliates > Settings > General. Let me explain how these commissions work:

    If John (Level 0) refers Tom (Level 1), who refers Janet (Level 2), the commissions are paid upwards. So in this scenario, if Janet on Level 2 Directly Refers a sale, Janet will receive a 30% or 40% Direct Referral Commission (Based on your Direct Referral Rate settings), Tom will receive a 10% Indirect Referral Commission, and John will receive a 10% Indirect Referral Commission as well.

    If Tom on Level 1 Directly Refers a sale, Tom will receive 30% or 40% (Based on your Direct Referral Rate settings), and John will receive a 10% Indirect Referral Commission. But since there is noone above John, there are no other Indirect Referral Commissions to generate for that sale.

    With that said, you should calculate your max payout based on the commission rate for the Direct Level and each Indirect Level. In this case if you do not want to exceed 50%, it would be 30% Direct, and 20% Indirect (10% for each Indirect Level).

    There’s currently no way to adjust the Direct Referral Rate to give the 20% that would have been paid to the Upline to the Direct Referrer, if they don’t have an Upline Parent above them. However, if you need it to work this way, we do offer custom development services, and I could certainly build this custom feature for you.

    Do you need it to be dynamic or is it better for you to just use the 30% Direct, 10% Level 1 and 10% Level 2 model?

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