MLM Settings

MLM, also known as Multi-level Marketing or Multi-level Commissions is a feature which allows your affiliates to recruite more affiliates. And when these recruited affiliates bring you a sale, then the affiliates above them in the tier also get a commission. Simplest example is, an affiliate A recruites affiliate B. B brings you a sale. Using MLM, both affiliates A and B can get commissions based on what you define below.
Also, please note that the commissions for different tiers is calculated from the commission amount of the main affiliate and not on your order value.
MLM is a very effective way to get more affiliates because your affiliates are motivated to recruit more affiliates. More the affiliates, the better for you. However, be wary of creating too many levels as in this case, the total commissions for all the tiers combined can exceed your profit margins. This is why we have put max. number of 5 levels. For most cases, 2-3 levels are more than enough if you want to preserve your sanity :)