3-level commissions: how they work
3-level commissions refer to an affiliate compensation plan where you are paid across three depths of your network: the people you refer directly, those they refer next, and the level below that. Each level has its own percentage. This article defines the mechanism, walks through it with a strictly illustrative worked example, and honestly recalls its conditions and limits.
3-level commissions: the definition
A 3-level commission plan distributes your compensation according to the distance between you and the person generating the activity:
- Level 1 — your direct referrals: the people who signed up thanks to your referral. Highest rate.
- Level 2 — the referrals of your referrals. Reduced rate.
- Level 3 — the level below that again. Also a reduced rate.
The idea is to reward you not only for your own referrals, but also for helping your network grow. The rate decreases with depth, which keeps the bulk of the compensation on your direct relationship.
HerbaCRM's 40/10/10 model
The HerbaCRM affiliate program applies a clear plan: 40% at level 1, 10% at level 2, 10% at level 3. Two important characteristics:
- The commissions are recurring: they apply at every paid subscription cycle, not just the first.
- Withdrawing commissions is reserved for active subscribers: you can explore the tool for free, but claiming your commissions requires an active subscription.
The percentage applies to the amount of the referred coach's subscription. Since the income is recurring, it follows the real life of your network's subscriptions.
Worked example — ILLUSTRATIVE, not guaranteed
Warning: the figures below are a purely educational example to show how the calculation works. They in no way represent promised, expected or typical earnings. Real income is variable, not guaranteed, and depends entirely on your activity and your network.
Let us imagine, for the example, a reference subscription of 20 per month, and a hypothetical network of the following shape:
- Level 1: 5 subscribed coaches you referred. Commission: 40% x 20 x 5 = 40 per month.
- Level 2: 8 subscribed coaches referred by your level 1. Commission: 10% x 20 x 8 = 16 per month.
- Level 3: 10 subscribed coaches at the next level. Commission: 10% x 20 x 10 = 20 per month.
In this fictional scenario, the illustrative monthly total would be 40 + 16 + 20 = 76 per month, as long as all 23 of these subscriptions stay active. Once again: this is not an earnings projection. It is an arithmetic demonstration. A real network can be much smaller, much less active, or fluctuate from one month to the next.
Why recurring makes the calculation shifting
The big difference with a one-time commission is that the total is never fixed. Each month:
- New subscriptions may be added if you refer or if your network grows.
- Existing subscriptions may stop if coaches cancel, which removes the corresponding commission.
Your 3-level commission income is therefore a direct reflection of the real state of your network at a given moment. This is what makes the model interesting over time, but also what prevents any promise: no one can guarantee how many subscriptions will stay active.
What really influences the result
Beyond the stated rate, several factors determine what this plan actually produces:
- The number of active subscriptions, not the number of sign-ups: only a paid subscription generates a commission.
- The lifespan of those subscriptions: the longer they last, the more the recurring effect accumulates.
- The real depth of your network: levels 2 and 3 only exist if your level 1 refers in turn.
- Your own status: withdrawing commissions requires an active subscription on your part.
Seeing the mechanism for real
The best way to understand a commission plan is to see it in action. HerbaCRM displays your levels and your commissions directly in the tool you use to track your clients. You can create a free account to explore the affiliate dashboard, then activate a subscription to be able to claim your commissions. HerbaCRM is an independent tool, not affiliated with Herbalife.
In summary
The 40/10/10 3-level commissions reward both your direct referrals and the growth of your network, on a recurring basis. Any worked figure is only an illustration of the calculation: real earnings remain variable, not guaranteed, and strictly dependent on the number and duration of the active subscriptions around you.