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Cobalz Affiliate

MLM overrides

Recruit recruiters. Get the math right.

Cobalz supports multi-level MLM overrides — a configurable percentage of every sub-affiliate's commission flows up the recruiting chain, per level. 2-tier by default, up to 8 levels when your program genuinely needs them. Off by default, gated by your plan, and honest about the legal line.

How it works

One commission row per upline level.

When MLM is enabled and the leaf affiliate has a parent_affiliate_id:

  1. The leaf affiliate gets their normal commission per the cascade rules.
  2. Each configured upline level gets its own commission row at that level's rate × the original leaf amount, with parent_commission_id linking back to the leaf row. Suspended uplines forfeit their level; the walk is cycle-safe.
  3. Refunds cascade: voiding the leaf voids the overrides; clawback on the leaf creates clawbacks on every override at the same proportion.
// Merchant settings
{
  mlm_enabled: true,
  mlm_level_rates: [0.25, 0.10]  // L1 25%, L2 10%
}

// Order: $100 sale, leaf affiliate earns $10
//   commissions
//   ┌──────────────────────────────────────────┐
//   │ id=c1 affiliate=alice rate=0.10 amt=10.00│
//   ├──────────────────────────────────────────┤
//   │ id=c2 affiliate=bob   rate=0.25 amt=2.50 │
//   │   ↑ parent_commission_id=c1  (level 1)   │
//   ├──────────────────────────────────────────┤
//   │ id=c3 affiliate=carol rate=0.10 amt=1.00 │
//   │   ↑ parent_commission_id=c1  (level 2)   │
//   └──────────────────────────────────────────┘

Why this is gated

2-tier by default. Depth is a decision, not a dial you bump.

Multi-level marketing schemes with 3+ levels are regulated in many US states and most of the EU. Hitting that line accidentally is a fast track to lawsuits. Cobalz defaults to the one referrer-rewards layer real affiliate programs need; each deeper level (up to 8) is an explicit per-level opt-in with its own rate, and the defaults never take you there.

  • Yes Configurable rate (0–100%) so you can find the right reward without us picking a number for you
  • Yes Off by default — opt in explicitly
  • Yes Plan-gated to Growth+ so your "free" tier program isn't accidentally compliant-flagged
  • Yes Real refund clawback on parent rows — no orphaned overrides after refunds
  • Yes Audit-logged + outbound webhook event (commission.created with parent_commission_id)

FAQ

MLM questions.

How many tiers can I pay?+
Up to 8, each with its own rate — but the default is the classic 2-tier "recruit recruiters" setup, and we recommend staying there. Deep multi-level structures are regulated in many US states and most of the EU; going past two tiers is an explicit, per-level choice you make in settings, never something Cobalz turns on for you.
Is MLM enabled by default?+
No — off by default. Enable in Settings → MLM with a single toggle, then set the rate per level (0-100%). One level configured = classic 2-tier.
Does refund clawback work for parent commissions?+
Yes. When the leaf commission is voided/clawed-back, the parent override row is voided/clawed-back proportionally.
How is the parent-child relationship set up?+
Three ways: (1) the affiliate signup form has an optional "referred by" field; (2) the bulk import CSV has a parent_email column; (3) the merchant can manually set parent_affiliate_id on the affiliate detail page.

Recruit affiliates who recruit affiliates.

Multi-level MLM overrides included on the Growth plan. 14-day free trial.

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