When you enable MLM, your affiliates can invite others affiliates in their network into your program. They benefit, as any sales their recruited affiliates make, they’ll get a commission share ie passive income.
You can select your Multi-Level Marketing commission structure to be either :
For example, if you set commissions based on the percentage of the sale, it looks like this:
Jessica signs up as an affiliate.
She then invites Jackie.
Jackie invites Paul.
Paul invites Kate.
Kate brings in a new customer referral order of $100. With the commission percentage set at 10%, that means Kate makes 10% of $100 or $10.
Paul invited Kate so he gets 50% of Kate’s commission which is 50% x $10 = $5.
Jackie invited Paul and he gets 20% of the value of Kate’s commission which is 20% x $10 = $2.
Jessica invited Jackie and she receives 10% of the value of Kate’s commission which is 10% x $10 = $1.