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Cobalz Affiliate

2-tier MLM overrides

Recruit recruiters. Get the math right.

Cobalz supports 2-tier MLM overrides — a configurable percentage of every sub-affiliate's commission flows to the affiliate that recruited them. Off by default, gated by your plan, off-by-default, and bounded by the legal line.

How it works

Two commission rows per attributed order.

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. Their parent gets a second commission row at mlm_parent_override_rate × the leaf amount, with parent_commission_id linking back to the leaf row.
  3. Refunds cascade: voiding the leaf voids the parent override; clawback on the leaf creates a clawback on the parent at the same proportion.
// Merchant settings
{
  mlm_enabled: true,
  mlm_parent_override_rate: 0.25  // 25%
}

// 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 │
//   │   ↑ basis=subtotal                       │
//   │   ↑ parent_commission_id=c1              │
//   │   ↑ notes="2-tier override from order …" │
//   └──────────────────────────────────────────┘

Why this is gated

The 2-tier ceiling is a feature, not a limitation.

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 ships exactly the depth real affiliate programs need (one referrer-rewards layer) and stops 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.

Why only 2 tiers, not 5?+
Because deep MLM (3+ tiers) is regulated as multi-level marketing and approaches pyramid-scheme territory legally. 2-tier "recruit recruiters" is the standard affiliate-industry implementation that stays in safe legal water.
Is MLM enabled by default?+
No — off by default. Enable in Settings → MLM with a single toggle, then set the override rate (0-100%).
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.

2-tier MLM overrides included on the Growth plan. 14-day free trial.

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