Commission Settings Documentation

Complete guide to configure commission structures and payout settings

Last updated: February 1, 2024 • Version: 2.1.0 • Difficulty: Intermediate

Commission Settings Overview

Commission settings define how distributors earn income in your MLM business. MLMPortal.in provides comprehensive commission configuration options for all major compensation plans with flexible calculation methods and payout structures.

Key Features:

• Support for all major commission types (Binary, Unilevel, Matrix, etc.)
• Flexible commission calculation methods
• Multiple bonus structures (Fast Start, Matching, Leadership)
• Configurable payout schedules and thresholds
• Real-time commission tracking and reporting

Commission Calculation Flow

Commissions in MLMPortal.in are calculated using a multi-step process that ensures accuracy and compliance with your compensation plan rules.

Commission Calculation Process

1. Data Collection
   - Sales volume tracking
   - Team structure analysis
   - Qualification verification

2. Commission Calculation
   - Plan-specific calculations
   - Bonus eligibility checks
   - Capping and limit application

3. Payout Processing
   - Minimum payout validation
   - Payment method selection
   - Tax and fee deductions

4. Reporting & Analytics
   - Commission statements
   - Performance tracking
   - Financial reporting

Commission Types

MLMPortal.in supports various commission types that can be configured based on your business model and compensation plan requirements.

1. Binary Commissions

Based on a two-legged structure where commissions are calculated from the weaker leg performance.

// Binary Commission Example
{
  "commission_type": "binary",
  "calculation_basis": "weaker_leg",
  "pair_rate": 0.10,
  "pair_value": 100,
  "carry_forward": "enabled"
}
                

2. Unilevel Commissions

Commission based on multiple levels with decreasing percentages at each level.

// Unilevel Commission Example
{
  "commission_type": "unilevel",
  "levels": [
    {"level": 1, "percentage": 10},
    {"level": 2, "percentage": 5},
    {"level": 3, "percentage": 3}
  ],
  "depth": 7
}
                

3. Matrix Commissions

Commission based on a fixed-width, limited-depth matrix structure.

// Matrix Commission Example
{
  "commission_type": "matrix",
  "width": 3,
  "depth": 5,
  "commission_rates": [15, 10, 5, 3, 2]
}
                

4. Hybrid Commissions

Combine multiple commission types for complex compensation plans.

// Hybrid Commission Example
{
  "commission_type": "hybrid",
  "components": [
    {"type": "binary", "weight": 60},
    {"type": "unilevel", "weight": 30},
    {"type": "bonus", "weight": 10}
  ]
}
                

Basic Commission Settings

Configure the fundamental commission parameters that apply across all commission types.

Global Commission Configuration

// Global Commission Settings
{
  "commission_settings": {
    "currency": "INR",
    "calculation_frequency": "daily",
    "payout_frequency": "weekly",
    "minimum_payout": 500,
    "maximum_payout": 50000,
    "tax_settings": {
      "tds_enabled": true,
      "tds_rate": 5,
      "pan_required": true
    },
    "commission_hold_period": 7
  }
}
                

Parameter	Description	Required
`currency`	Currency for commission calculations	Yes
`calculation_frequency`	How often commissions are calculated	Yes
`payout_frequency`	How often payouts are processed	Yes
`minimum_payout`	Minimum amount for payout processing	Yes
`tax_settings`	Tax deduction at source configuration	No

Commission Qualification Rules

// Qualification Settings
{
  "qualification_rules": {
    "minimum_personal_volume": 100,
    "minimum_team_volume": 1000,
    "active_status_required": true,
    "training_completion_required": false,
    "qualification_period": "monthly"
  }
}
                

Binary Commission Configuration

Detailed configuration options for Binary plan commissions.

Binary Commission Settings

// Binary Commission Configuration
{
  "binary_commission": {
    "pair_commission_type": "percentage",
    "pair_commission_rate": 10,
    "pair_calculation_type": "weaker_leg",
    "minimum_pairs": 1,
    "maximum_pairs": "unlimited",
    "pair_value": 100,
    "trench_amount": 500,
    "carry_forward": {
      "enabled": true,
      "period": "weekly",
      "maximum_carry_forward": 1000
    },
    "capping": {
      "daily_cap": 10000,
      "weekly_cap": 50000,
      "monthly_cap": 200000
    }
  }
}
                

Parameter	Description	Default
`pair_commission_type`	Percentage or fixed amount per pair	percentage
`pair_commission_rate`	Commission rate per pair	10
`pair_calculation_type`	Weaker leg or stronger leg based	weaker_leg
`pair_value`	Point value for each pair	100
`trench_amount`	Maximum commission per calculation	500

Unilevel Commission Configuration

Configure multi-level commission structures for Unilevel plans.

Unilevel Commission Settings

// Unilevel Commission Configuration
{
  "unilevel_commission": {
    "depth": 7,
    "commission_rates": [
      {"level": 1, "percentage": 10, "requirement": "none"},
      {"level": 2, "percentage": 5, "requirement": "active"},
      {"level": 3, "percentage": 3, "requirement": "active"},
      {"level": 4, "percentage": 2, "requirement": "active"},
      {"level": 5, "percentage": 1, "requirement": "active"}
    ],
    "level_requirements": {
      "personal_volume": 100,
      "level_volume": [500, 1000, 2000, 5000, 10000]
    },
    "compression": {
      "enabled": true,
      "method": "skip_inactive"
    }
  }
}
                

Matrix Commission Configuration

Configure fixed-width matrix commission structures.

Matrix Commission Settings

// Matrix Commission Configuration
{
  "matrix_commission": {
    "width": 3,
    "depth": 5,
    "commission_rates": [15, 10, 5, 3, 2],
    "spillover_enabled": true,
    "reentry_enabled": false,
    "cycle_bonus": {
      "enabled": true,
      "amount": 1000,
      "requirement": "complete_matrix"
    }
  }
}
                

Bonus Settings

Configure additional bonus structures to incentivize performance.

Fast Start Bonus

// Fast Start Bonus
{
  "fast_start_bonus": {
    "enabled": true,
    "rate": 20,
    "duration_days": 30,
    "applicable_products": ["starter_pack", "premium_pack"],
    "maximum_bonus": 5000
  }
}
                

Matching Bonus

// Matching Bonus
{
  "matching_bonus": {
    "enabled": true,
    "rate": 10,
    "depth": 5,
    "qualification": {
      "personal_volume": 500,
      "team_volume": 5000
    }
  }
}
                

Leadership Bonus

// Leadership Bonus
{
  "leadership_bonus": {
    "enabled": true,
    "levels": [
      {
        "rank": "bronze",
        "bonus_rate": 5,
        "requirements": {
          "personal_recruits": 5,
          "team_size": 50,
          "monthly_volume": 10000
        }
      },
      {
        "rank": "silver",
        "bonus_rate": 7,
        "requirements": {
          "personal_recruits": 10,
          "team_size": 200,
          "monthly_volume": 50000
        }
      }
    ]
  }
}
                

Payout Configuration

Configure how and when commissions are paid out to distributors.

Payout Settings

// Payout Configuration
{
  "payout_settings": {
    "payout_frequency": "weekly",
    "payout_day": "monday",
    "minimum_payout": 500,
    "maximum_payout": 50000,
    "payout_methods": ["bank_transfer", "upi", "wallet"],
    "auto_payout": true,
    "payout_approval": "auto",
    "processing_fee": {
      "enabled": true,
      "fee_type": "percentage",
      "fee_amount": 2,
      "minimum_fee": 10
    },
    "hold_period": {
      "enabled": true,
      "days": 7
    }
  }
}
                

Parameter	Description	Options
`payout_frequency`	How often payouts are processed	daily, weekly, monthly
`payout_methods`	Available payout methods	bank_transfer, upi, wallet, cheque
`payout_approval`	Payout approval process	auto, manual
`processing_fee`	Fee charged for payout processing	Object with fee settings

Testing & Validation

Test your commission settings before going live to ensure accurate calculations.

Test Commission Calculation

// Test Commission Calculation API
POST /api/v1/commission/test
{
  "plan_id": "binary_001",
  "user_id": "user_123",
  "calculation_period": "2024-02",
  "test_data": {
    "left_leg_volume": 5000,
    "right_leg_volume": 3000,
    "personal_sales": 1000
  }
}

// Response
{
  "status": "success",
  "total_commission": 450,
  "commission_breakdown": {
    "binary_commission": 300,
    "fast_start_bonus": 100,
    "matching_bonus": 50
  },
  "calculation_details": {
    "pairs_calculated": 30,
    "carry_forward_used": 0,
    "capping_applied": 0
  }
}
                

Validation Checklist

Test commission calculations with various scenarios
Verify bonus eligibility and calculations
Test capping and limit functionality
Validate carry-forward calculations
Test payout processing and fees
Verify tax calculations and deductions

Troubleshooting

Common issues and solutions for commission configuration.

Common Commission Issues

• Commissions not calculating for qualified members
• Incorrect commission amounts
• Bonuses not being applied
• Payouts not processing automatically
• Tax calculations incorrect

Debug Commission Calculation

// Enable commission debug mode
UPDATE system_settings 
SET value = 'true' 
WHERE setting_key = 'commission_debug_mode';

// Check commission calculation logs
SELECT * FROM commission_calculation_logs 
WHERE user_id = ? AND period = ?
ORDER BY calculation_time DESC;

// Verify qualification status
SELECT * FROM user_qualifications 
WHERE user_id = ? AND period = ?;
                

Common Solutions

Verify commission plan is active and properly configured
Check user qualification status and requirements
Validate product point values and commission rates
Ensure calculation period settings are correct
Check for system limits and capping settings

Need Help with Commission Settings?

Our technical support team is available to help you configure and optimize your commission structures.

Contact Support

Documentation

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