Location: Admin > Configs > Distributor Plans
Distributor Plan Types
There are various distributor membership plans in the network marketing industry. ‘Unilevel’, ‘Forced Matrix’ and ‘Binary’ are the 3 popular membership types. You must decide on the membership type you would like to use, based on your business plan.
Configuring a Unilevel Plan
Plan Name: Enter a unique name for the distributor plan. This plan name is visible to members during signup.
Width: This is infinite for unilevel plans. This cannot be changed.
Depth: No. of levels for which ‘level commission’ is credited. Maximum 15 level commissions is supported. Depth only indicated the levels from ‘commission perspective’. Membership tree can grow to any number of levels.
Is Default Plan: When you group plans or when you have more than one plan, you can choose one of them as the default plan. For grouped plans, default plan will be shown by default in ‘Plan’ dropdown in signup page. For multiple plans, if a user joins without a referral(sponsor), he will be placed into the default plan.
Joining fee: This is the fee to join or fee for the starter kit of this business. A user can register on the website by entering his/her details. But to become ‘Approved’ member, joining fee must be paid. For online payments through payment gateways, members are auto approved. For offline payments, admin must approve the user from ‘Distributors’ tab.
If joining fee is zero, members are auto approved on registration.
Auto create order for joining fees payment: If you have a starter kit product, you can configure that product as the product here. Product price and joining fee value must match.
Membership Renewal fee: A yearly/half yearly renewal fees can be configured. If a member fails to pay the fee, his/her account will become ‘Unqualified’. No commissions are paid to anyone on renewal fee payments.
Recurring Fee: A monthly recurring fee can be configured. Month is calculated based on activation date of the member. If a member fails to pay the recurring fee, his/her account will become ‘Unqualified’. An Autoship product can also be configured with this fee.
Minimum Purchase Requirement: A minimum purchase amount criteria can be set for distributors to remain ‘Qualified’.
Commission amount can be configured as a percentage of joining fee paid by a new distributor or as a fixed amount.
Direct Referral Commission: This is the commission for personal referral. i.e If ‘A’ refers ‘B’, ‘A’ gets the direct referral commission.
Referral Commission (Level 1 to Level 15): This is the level based commission. i.e If ‘A’ refers ‘B’ & ‘B’ refers ‘C’:
‘A’ gets Level 1 commission for joining of ‘B’
‘B’ gets Level 1 commission for joining of ‘C’
‘A’ gets Level 2 commission for joining of ‘C’
Recurring Commission: This is same as above but for the monthly recurring fee payment by distributors.
Level Compression: If renewal fee or recurring fee is configured, some distributors may become ‘Unqualified’ due to non-payment of fee. In such scenario, if ‘Level Compression’ is enabled, the level commission of that unqualified user, gets passed on to his sponsor. If ‘Level Compression’ is not enabled, the commission amount meant for the unqualified user will remain with the Website owner (not paid to anyone). Overall, ‘Level Compression enabled’ is beneficial for distributors.
Product Sales Commission
Self product purchase commission: This is the commission or cash back received by distributors for their product purchases from the website. This can be optionally set to zero if dual product pricing is used in the website (See General Configs). If dual product pricing is configured, distributors are benefited from the price different of products (customer price minus distributor price).
Product Purchase Commission (Level 1 to Level 15): Similar to referral commission, this commission is paid on the orders placed by distributors. i.e If ‘A’ has referred ‘B’ & ‘B’ has referred ‘C’:
If ‘C’ places an order of $X
‘B’ gets Level 1 commission for $X order
‘A’ gets Level 2 commission for $X order
Guest Product Purchase Commission
Visitors can purchase products on the website without registration. These orders are considered Guest purchase. Visitors who visit website through a distributor referral link are tracked with a cookie. The referring distributor and his upline is credited with Guest product purchase commission. Maximum 5 levels of commission are supported.
Commission Processing Time/Payment time configuration
Credit Instantly: When this option is selected, all commissions are credited instantly to the ewallet.
Processed by Admin every week: When this option is selected, Admin must credit commission every week from Commission > Calculate Commission page.
Processed by Admin every month: When this option is selected, Admin must credit commission every month from Commission > Calculate Commission page.
Configuring a Forced Matrix Plan
Most configurations remain same as in Unilevel plan. Only those configurations which different from Unilevel plans are explained here:
Width: This refers to the maximum no. of referrals a distributor can make or the width of the membership tree. If more than ‘width’ no. of referrals are made, they spillover to the next available slot in the matrix. Matrix is filled top to bottom, left to right.
If a distributor is eligible for both direct referral and level commission, credit only direct referral commission: If this is enabled, for a referral (which is not a spillover) ‘Direct Referral commission’ amount is credited to the sponsor instead of ‘Level 1 commission’. This will prevent both ‘Direct Referral Commission’ & ‘Level 1’ commission getting credited to sponsor.
For spillovers, pay Level1 commission to original sponsor and 2nd level onwards to his upline: This option will indicate where to start commission crediting in the genealogy tree for spillover scenario. If this is checked, Level 1 Commission is credited to the actual sponsor & Level 2 commission is credited to actual sponsor’s parent. If this option is not checked, Level 1 commission goes to the immediate parent & Level 2 commission goes to parent’s parent.
Configuring a Binary Plan
Root User: A binary plan requires a root user. All distributors must be registered under this root user. From Admin area, you can create a user without any plan and then enter that username in this input field. Root user is automatically approved once you save the plan.
Binary Commission Configuration
First Pair Commission: Commission amount paid to a distributor for referring one pair. i.e one distributor in left leg and one distributor in right leg.
Pair Commission (Second pair onwards): Pair commission amount for pairs done after the first pair.
First Pair Matching Ratio:
1:1 means, 1 user on left leg and one user on right leg is required to make it one pair.
1:2/2:1 means, 1 user on left leg and 2 users on right leg is required to make it one pair
2 users on left leg and 1 user on right leg is required to make it one pair.
2:3/3:2 means, 2 users on left leg and 3 users on right leg is required to make it one pair
3 users on left leg and 2 users on right leg is required to make it one pair.
Second Pair onwards Matching ratio: Similar to the above, this configuration is used to calculate the pair count, once the distributor has completed his first pair.
Commission Mode: Week leg pay. If the matching ratio is 1:1 and you have 4 users on left leg and 7 users on right leg, you will be paid for 4 pairs. This is called as week leg pay.
Capping for Payout Term: This is the maximum pairs commission that you can receive in any payout term(daily/weekly/monthly). If Capping = 100, Payout frequency=Monthly, a distributor can receive maximum 100 pairs commission, even if he makes more than 100 pairs.
Payout Frequency: Daily, Weekly, Monthly. This is used for calculating the capping limits. i.e if Payout Frequency is ‘Weekly’ and Capping for payout term is ‘14’, you are paid a maximum of 14 pairs commission, even if you make more than 14pairs in this week.
Carry Forward: If ‘Yes’, the remaining referrals, which were not paid due to ‘Capping’ limit are carry forwarded to next payout term. If ‘No’, remaining referrals are flushed, i.e not considered in the next pay cycle.
Product Sales Commission
100BV: This config is to associate the BV with the amount. If 100BV=$100, each BV (point) is worth $1. In binary plan, products must be configured with the BV point value.
Minimum BV required for payout: Product commission in binary plans are credited based on accumulated BV. BV is accumulated for infinite depth. A minimum accumulated BV can be configured. If Minimum BV is not reached, distributor must wait for BV to reach minimum BV to receive product sales commission.
Maximum product sales commission per payout term: Similar to pair commission, a capping or limit can be placed on the product commission. Extra BV is flushed (cleared).