How Commission Will Distribute When MLM is set and Not set
There are two conditions under commission distribution
- MLM is not Activated.
- MLM is Activated.
MLM is not Activated:-
This commission will be set under the COMMISSION tab.
Let suppose that an affiliate shared a product link and the product price is 500$ and the category is Clothing.
The below example is based on priority wise.
- If Per Product Commission is set on that particular product as (10 percent ) then Affiliate through whom affiliate link product was purchased will receive 50$ which is 10% of the product price(500$).
- If Per Product Commission is not set on that Product then System will check that Is commission is set on “Clothing” Category or not, let’s suppose if 20% commission is set on category “Clothing” In this condition Affiliate will receive 100$ which is 20% of the Product price(500$).
- If Per Product Commission is not set and Category commission is not set then the system will check that commission on all products is set or not, let’s suppose Commission on all product is set as 15% then Affiliate through whom affiliate link product was purchased will receive 75$ as referral commission which is 15% or product price(500$).
MLM is Activated:-
Let suppose that an affiliate shared a product link and the product price is 500$ and the category is Clothing.
The commission is going to distribute into 2 Parts.
- Direct Commission –> Received by the Affiliate through whom affiliate link product was purchased, the direct commission was set in COMMISSION tab if product commission is selected OR in the level tab is User based commission is selected in Commission tab.
- MLM Commission –> Receive by the Parent of Affiliate, and this commission is set under the MLM tab.
Product commission:-
- Per product commission:- Not set
- category commission:- Not set
- Commission on all products:- 20%
MLM commission:- (Unlimited MLM plan is set)
- Level 1 = 10%
- Level 2 = 5%
- Level 3 = 3%
This is the MLM chain, So we will look into the example by considering the above chain.
Commission Distribution:- (let’s suppose that Affiliate “7” sends the affiliate link to any user and that user make a purchase using affiliate link sent by Affiliate number “7“ )
Per Product Commission is not set and Category commission is not set then the system will check that commission on all products is set or not, Commission on all product is 20% then Affiliate “7” receive 100$ as Direct Commission.
Now MLM came in Picture:-
Level 1:-
- If Parent exists of Affiliate “7” then parent affiliate “3” holds Level 1 and receives 10% as MLM commission, If MLM commission is set as “based on Product Price” then Parent affiliate which is Affiliate “3” will receive 50$ (which is 10% of product price 500$).
- If Parent exists of Affiliate “7” then parent affiliate “3” holds Level 1 and receives 10% as MLM commission, If MLM commission is set as “Based on the amount earned by the affiliate as commission” then Parent affiliate which is Affiliate “3” will receive 10$ (which is 10% of the amount earned by the Affiliate “7” 100$ as referral commission).
Level 2:-
- If Parent exists of Affiliate “3” then parent affiliate “1” holds Level 2 and receives 5% as MLM commission, If MLM commission is set as “based on Product Price” then Parent affiliate which is Affiliate “1” will receive 25$ (which is 5% of product price 500$).
- If Parent exists of Affiliate “3” then parent affiliate “1” holds Level 2 and receives 5% as MLM commission, If MLM commission is set as “Based on the amount earned by the affiliate as commission” then Parent affiliate which is Affiliate “1” will receive 5$ (which is 5% of the amount earned by the Affiliate “7” 100$ as referral commission).
Now Parent of Affiliate “1” does not exist so commission distribution will stop here.
End Result is:-
20% of the product Based on Product Price OR Based on Affiliate Commission
Direct = 100$ — —
Level 1 = — 50$ 10$
level 2 = — 25$ 5$
