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MLM Commission Logic: Example and Explanation with Additional Features

By admin

Basic Understanding

The core of our MLM script is designed to offer commissions based on total orders from your external or local store. Commissions are set per level, and they cascade down the affiliate network, effectively increasing the earnings of higher-tier affiliates.

Practical Example

Level 0 – Direct Commissions

If Affiliate-A promotes a product and a $2000 sale occurs, with a commission rate set at 2%, Affiliate-A earns a 2% commission from that $2000 sale.

Multi-level Commissions

  • Level 1: If Affiliate-B is under Affiliate-A and promotes a sale, Affiliate-A earns an automatic 5% commission on that sale.
  • Level 2: Similarly, if Affiliate-C is under Affiliate-B and promotes a sale, Affiliate-A earns an automatic 4% commission on that sale.
  • Level 3: If Affiliate-D is under Affiliate-C, Affiliate-A earns an automatic 3% commission on any sale promoted by Affiliate-D.
  • Level 4: And so on, up to a maximum of 20 levels that our system allows.

Extended MLM Module Features

Supported Types of Commissions

  • CPS (Cost Per Sale): For both external and local store products.
  • CPC (Cost Per Click): For both external and local store products.
  • CPA (Cost Per Action): For external integrations.

Network Tree

  • Admins can view the full network tree on their dashboard.
  • Affiliates have a view of their own downline network.

Sponsor Visibility

  • Admins can choose whether an affiliate can see who their sponsor is.


  • The MLM module can be easily enabled or disabled.
  • This can also be done for specific users.

Invitation Links

  • Affiliates can find their invitation links on their dashboards for easy sharing and network growth.

API Support

  • Full order API integration library is available for custom requirements.

Final Thoughts

By understanding how commissions work in a multi-level context, and by leveraging the extended MLM module features, you can maximize the earning potential for both you and your affiliates. Whether you’re focusing on sales, clicks, or specific actions, the MLM model offers a highly flexible, scalable, and motivational system for growing your affiliate network.

Note: All settings and functionalities are to be confirmed within your specific admin panel as they might differ based on updates or customizations.