Plan Availability: The MLM feature is natively available on the Scale and Enterprise plans.
Special Offer: If you are currently on the Launch plan, you can purchase MLM as a standalone add-on through our support team.
1. What is Multi-level Marketing (MLM)? 🤔
Multi-level affiliate marketing—also known as multi-tier or network marketing—is a strategy where affiliates are incentivized to recruit other affiliates (sub-affiliates). Members of the network earn commissions from conversions driven by their recruited affiliates.
Which businesses benefit most?
SaaS & Subscription Services: High-margin products benefit from "power users" recruiting other professionals to build a recurring income stream.
Health, Beauty & Wellness: These industries often rely on personal recommendations and community trust, which a tiered network naturally provides.
E-learning & Coaching: Successful students can become sub-affiliates, promoting the course to their own audiences while the original creator rewards the mentor.
B2B Service Providers: Agencies can recruit smaller consultants to act as a specialized sales force.
2. How does MLM work on Tapfiliate?
Tapfiliate uses a relative MLM structure. This means the person who actually makes the sale always receives the highest reward (Level 1/Standard commission).
Core Logic:
Performance Only: We do not support rewarding affiliates for the act of recruitment alone or charging users to join, as this prevents fraud.
Infinite Growth: Affiliates can recruit an unlimited number of sub-affiliates both horizontally and vertically.
No Limit on Tiers: You can create as many levels as you like.
3. Why Choose Tapfiliate’s Relative MLM Structure?
Tapfiliate’s MLM feature is built on a relative commission model. This design is specifically engineered to ensure fairness and transparency, setting it apart from traditional hierarchical programs.
Equal Opportunity for All: The structure is designed to give every member of your affiliate network an equal chance to earn the highest level of commission.
Performance Over Position: An affiliate's position within the network hierarchy has no influence on their potential earnings. Success is determined strictly by individual and team performance, not by how early someone joined.
Rewarding Direct Effort: The affiliate who directly drives the conversion is always guaranteed the highest reward (Level 1/Standard commission). This ensures that your most active sellers are always properly incentivized.
Sustainable Growth: Unlike models that focus solely on the size of the network, Tapfiliate does not issue rewards based on the act of recruitment or the number of people an affiliate can bring in. Commissions are only distributed when a verified action, such as a purchase, is tracked.
Protection Against Fraud: By requiring actual sales for all payouts, this model remains resilient against fraud and avoids the unsustainable "recruitment-first" practices seen in pyramid schemes.
4. How to create MLM levels 🔨
To enable MLM, you must create at least one level in your program:
Navigate to Settings > Programs.
Click the MLM tab.
Click the "Add level" button.
Enter the commission rate for the new level (Percentage or Fixed).
Once a level is created, an MLM tab automatically appears in your affiliates' dashboards.
5. How rewards are distributed: A Practical Example 💸
Affiliates in the "upline" of the person driving the sale are eligible for commissions if they fall within the range of levels you have set. Because Tapfiliate uses a relative MLM structure, the commission levels "shift" based on who makes the actual sale.
The Setup
Level 1 (Standard): 10%
Level 2: 2%
Level 3: 1%
The Network (Relationships)
The structure follows a clear hierarchy of recruitment:
The structure follows a clear hierarchy of recruitment: Darlene (Parent) → recruits Elliot → recruits Angela → recruits Tyrell.
The Results
Scenario A: If Angela drives a $100 sale ✅
In this case, Angela is the direct seller, so the reward calculations start with her as Level 1.
Angela: $10 (Level 1/Standard)
Elliot: $2 (Level 2)
Darlene: $1 (Level 3)
Scenario B: If Tyrell drives a $100 sale ✅
Because the system is relative, Tyrell now becomes Level 1. Everyone above him shifts up exactly one level in the commission chain.
Tyrell: $10 (Level 1/Standard)
Angela: $2 (Level 2)
Elliot: $1 (Level 3)
Darlene: $0 🙅 (Darlene would be Level 4; since Level 4 does not exist in this program, she is outside the reward range)
Why this works?
This relative system ensures that only effort is rewarded. An affiliate's position within the network has no influence over how much they could earn—the person driving the conversion is always guaranteed the highest commission (Level 1), regardless of when they joined the program.
6. How to establish parent-child relationships 🖇
There are three ways to link affiliates:
Recruitment Links: Affiliates share a unique link found in their MLM tab. New sign-ups via this link automatically become "children".
Manual Assignment: In the Affiliates Overview, select an affiliate and set their parent in the right-side details panel or within their full profile.
REST API: Use the "Set parent" endpoint to automate relationships during custom sign-up flows.
Crucial Requirement: Both parent and child affiliates must be approved for the program to receive MLM commissions.
7. Tracking & Genealogy 📊
Checking Commissions: You can see total MLM commissions in the Reporting tab by selecting a date range. You can also check individual Conversions to see the breakdown of regular and MLM commissions.
Method 1: Using the Reporting Section
Navigate to the Reporting tab in your Tapfiliate dashboard.
Select the Date filter.
Click on the calendar icon on the right side.
Choose the period you want to check.
You will be able to see the total MLM commission amount in the report.
Method 2: Checking Individual Conversions
Go to the Conversions tab.
Click on a specific conversion to open the detailed information window.
Scroll down to find the Commission section.
Here, you will see both the regular commission and the MLM commission amounts.
Admin View: Admins can find an affiliate's unique recruitment link and view their downline in the affiliate's details panel.
Affiliate View: Affiliates have an MLM tab where they can find their recruitment link and see their downline and earnings from sub-affiliates.
✨ NOTE: You can take your MLM program to the next level by setting Sales Goals.This feature is exclusively available on our Enterprise plan. Learn more in our dedicated Sales Goals article.
Still need help?
If you have any questions or if something in this guide is unclear, please don't hesitate to contact us at support@tapfiliate.com-we're happy to assist!
FAQ
❓Can I limit the number of users an affiliate can recruit?
Tapfiliate’s MLM feature is designed for infinite expansion. Affiliates can recruit as many sub-affiliates as they like, allowing your network to grow infinitely both horizontally and vertically.
❓Can I charge users when they join my program?
No. Tapfiliate does not support charging potential affiliates for participating in your program. This ensures your program remains low-risk and accessible.
❓Can I give an affiliate a commission just for recruiting someone?
No. Our MLM feature does not support rewarding affiliates solely for recruitment. We only issue rewards based on actual conversions or purchases, which protects your business from fraudulent activity.
❓How many levels can I create?
You can create as many levels as you’d like—there is no limit to the depth of your MLM structure.
❓What happens if a parent or child affiliate is not approved?
It is essential that both parent and child affiliates are approved for the specific program to receive their respective MLM commissions.
❓Is there a way to see my MLM genealogy?
Currently, while there is no visual "tree" diagram in the platform, you can easily view and manage all MLM relationships through several different views.
You can track your affiliate genealogy in the following ways:
Affiliate Details Panel: View or manually change an individual affiliate’s parent in the side panel of the Affiliates Overview.
Full Affiliate Profile: See an affiliate’s complete downline list and exactly how much commission they have earned from their sub-affiliates.
Sub-affiliate View (Affiliate Dashboard): Affiliates can see their own downline directly in their dashboard under the MLM tab.
CSV Data Export: Export your data from the Affiliates Overview page; each affiliate’s Parent ID is included in the file for external reporting.
Next Steps: Master Your Program 🚀
Now that you have set up MLM, explore these other powerful features:
MLM Sales Goals: Learn how to set performance targets for parent affiliates (Enterprise Feature).
Metadata: Pass additional information (like SKU or Customer ID) via conversions or customers.
Multi-language Programs: Give your affiliates the freedom to choose their preferred language for the dashboard.
Cap Management: Set limits on recurring commissions to control your payout budget.
Product (XML) Feeds: Provide your affiliates with automated product data to help them create dynamic content.