# Build your affiliate network with Multi-level Marketing

### 1. What is MLM?

**MLM**, also known as **network marketing** or **referral marketing**, is a promising strategy to sell products and services by encouraging existing employees or affiliates to recruit new affiliates. As a result, your business could reach out to more potential clients via a variety of channels and advertising campaigns.

<div align="left" data-full-width="false"><img src="https://content.gitbook.com/content/8I1FvDPwi1VP7QixsjAS/blobs/xHBJa78s8LqCyzmA2Buc/image.png" alt="MLM Model"></div>

The fundamental of **MLM** is represented by a pyramid, in which each affiliate asks another affiliate to join his or her affiliate network system at a downline level. The more people who are invited, the more products or services will be able to reach out to their target market.

Having MLM set up in your affiliate program means each affiliate in the pyramid network is not only paid for the sales he/she generates but also for a share of the sales made by their downline affiliates - which is called **network commission**. Therefore, people in the network would be incentivized to recruit more affiliates under them instead of just directly selling products to customers.

{% hint style="warning" %}
The network commission that upline affiliates receive will be provided **separately**, **not deducted** from the commission of the downline affiliate.
{% endhint %}

### 2. How to set up

To set up **MLM**, you must first go to **Extra functions** > **Multi-level Marketing (MLM)** and click the **Activate MLM** checkbox.

<figure><img src="https://1262132294-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F8I1FvDPwi1VP7QixsjAS%2Fuploads%2FHIRNbqA170GeO417DA9B%2Fimage.png?alt=media&#x26;token=5078a26f-b110-4767-aeb0-79ffb1232ae8" alt=""><figcaption></figcaption></figure>

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{% hint style="info" %}
The maximum of MLM levels is **20**. It's recommended that there are fewer than 5 levels as it will be easier for you to manage the network connections and calculate how much total commission you're willing to pay on an order.
{% endhint %}

**Network commission** can be based on total sale or program commission, and set at a percentage or flat rate. The commission value should be set in descending order to make sure that the affiliate who directly brought the order will receive the most commission amount. You can take a look at the **Live example** to check if you set up everything correctly!

#### Example

<figure><img src="https://1262132294-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F8I1FvDPwi1VP7QixsjAS%2Fuploads%2FL78pSi1VjuGytLr18h9d%2Fimage.png?alt=media&#x26;token=4f5ef077-4560-41a9-879d-ebee74c949dc" alt=""><figcaption></figcaption></figure>

{% hint style="info" %}
In this example, William invited Quinn and Quinn invited James, which makes William and Quinn both James' parent affiliates. The **MLM** structure is applied to all affiliates in the "Gold" program and there are two network commission levels. There is a 10% default commission for James - the downline affiliate who brought the order and two network commissions for Quinn and William based on their levels - 5% (Quinn: level 1) and 3% (William: level 2). The total amount of commission that needs to be paid for this $100 order is $18.
{% endhint %}

You can also configure advanced settings like a **recruitment bonus** to your affiliates when they successfully recruit other affiliates or the **minimum total revenue** an affiliate must reach to be able to receive network commission. Or **select a program for the invited affiliates** to join if you don't want them to start at the same level as the upline affiliate.&#x20;

<figure><img src="https://1262132294-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F8I1FvDPwi1VP7QixsjAS%2Fuploads%2FYlO4VDfQ2qV6DHwmUZVT%2Fimage.png?alt=media&#x26;token=9f2ce036-c888-48c2-a84c-d4ad87739207" alt=""><figcaption></figcaption></figure>

#### Example

<figure><img src="https://1262132294-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F8I1FvDPwi1VP7QixsjAS%2Fuploads%2FnO5WJiyBZBDTpAwmT54x%2Fimage.png?alt=media&#x26;token=4b1d779f-c92d-41b3-aad1-dd2e3d56ae27" alt=""><figcaption></figcaption></figure>

{% hint style="warning" %}
In this example, the **MLM** **recruitment bonus** is $5 and the **minimum total revenue** is $50. Quinn ("Affiliate" program) recruited James and received a $5 bonus. James is automatically placed in the "TEST" program. When James brings back an order, Quinn has only generated $40 of personal sales and is not eligible to receive a 5% **network commission** for that order although being James' parent affiliate.
{% endhint %}

Once you are done with the settings, remember to click **Save**!

### 3. How affiliates recruit others

After MLM is **activated**, each **Affiliate Dashboard** will have a **network link**.

<figure><img src="https://1262132294-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F8I1FvDPwi1VP7QixsjAS%2Fuploads%2FVJNdX69L1v7mImCMtB6Q%2Fimage.png?alt=media&#x26;token=b8c9bf67-4c5d-4cd2-b7c7-0dcd47b46d56" alt=""><figcaption></figcaption></figure>

Affiliates will share their dedicated **network links** to recruit others to join your program. When they click a **network link** and sign up as new affiliates, they will be considered as **downline affiliates** of a lower level than the link owner. Plus, downline affiliates' performances can be viewed in both the merchant's and the upline affiliates' dashboards.

### FAQ

**Q**: **Is a network link different from an affiliate link?**

A: Yes, it is. Here are their differences:

<table><thead><tr><th width="230"></th><th>Network link</th><th>Affiliate link</th></tr></thead><tbody><tr><td><strong>Format</strong></td><td>Typically <em>yourdomain.bixgrow.com/register?parent=...</em></td><td>Typically <em>yourdomain?bg_ref=...</em> (default) or <em>yourdomain/affiliate_name</em> (shortened)</td></tr><tr><td><strong>What affiliates use it for</strong></td><td>Inviting more affiliates to join the <strong>MLM</strong> network. Invited affiliates will automatically become their downlines, allowing them to earn networks commissions on the downlines' sales.</td><td>Driving customers and sales to your store. <strong>Referral orders</strong> made directly using affiliate links allow them to earn commissions.</td></tr><tr><td><strong>Where to find</strong></td><td><strong>Affiliate admin</strong> > <strong>Network</strong> > <strong>Network link</strong></td><td><strong>Affilate profile</strong> or <strong>Affiliate admin</strong> > <strong>Affiliate link</strong></td></tr></tbody></table>

### 4. Set a parent for an existing affiliate&#x20;

If you want to set upline affiliates for an existing affiliate, go to **Affiliates** > click the affiliate's name > **Network** > **Set Parent**.

<figure><img src="https://1262132294-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F8I1FvDPwi1VP7QixsjAS%2Fuploads%2FyoDgSK6x4V6WzQlUTiKi%2Fimage.png?alt=media&#x26;token=e2521cdb-2696-4f69-a08d-76c935556411" alt=""><figcaption></figcaption></figure>

<figure><img src="https://1262132294-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F8I1FvDPwi1VP7QixsjAS%2Fuploads%2Fnmw2nE2Fy5zePhuDeN46%2Fimage.png?alt=media&#x26;token=43117f87-c9c3-4e72-aed7-eb6672264a58" alt=""><figcaption></figcaption></figure>

Here, you can fill in the parent affiliate's name or email to search. When you finish, click **Save.**

<figure><img src="https://1262132294-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F8I1FvDPwi1VP7QixsjAS%2Fuploads%2FKwVxmcK9h1P4qErMXYPy%2Fimage.png?alt=media&#x26;token=5347068a-cda6-4263-b3fc-d49eb07899fa" alt=""><figcaption></figcaption></figure>

{% hint style="warning" %}
There can only be **one** direct upline affiliate for each affiliate.
{% endhint %}

### 5. How an MLM commission is displayed

If an order is brought by an affiliate in the MLM network, the order commission for the downline as well as the network commission for the upline will be shown in **Conversions**.

<figure><img src="https://1262132294-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F8I1FvDPwi1VP7QixsjAS%2Fuploads%2F3BKlvo1MWf6sV6R2NOXg%2Fimage.png?alt=media&#x26;token=0413f81f-caad-48d8-a126-0a30b034852f" alt=""><figcaption></figcaption></figure>

Affiliates can also keep track of their network commissions also in the **Network** tab.

### FAQ

**Q**: **Can I assign an affiliate to a fixed MLM level? For example, I set up A as everyone's level 1 parent affiliate?**

A: No, that is not possible. MLM levels are **NOT** fixed.

#### Example

<figure><img src="https://1262132294-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F8I1FvDPwi1VP7QixsjAS%2Fuploads%2FaOehdtjr2F8rAsZdhjF9%2Fimage.png?alt=media&#x26;token=bc913e3d-3f5e-4393-8543-71f82d3ac26a" alt=""><figcaption></figcaption></figure>

Here, James is the direct affiliate who makes the sale (earns 10%), while Quinn is his level 1 parent affiliate (earns 5%), and William is his level 2 (earns 3%).

If Quinn makes a sale, she is the direct affiliate (earns 10%), while William is her level 1 parent affiliate (earns 3%), and there's no level 2 as the levels stop there.

{% hint style="info" %}
**Conclusion**: Affiliates are at a different MLM level for each order, depending on their relationship with the affiliate who makes the sale (direct/parent/child), and the number of levels away from their parent/child affiliate. An affiliate can be the direct seller on an order, an MLM level 1 affiliate on another, and level 2 on another one at the same time.
{% endhint %}