Definition
A multi-level agent structure supports first-level, second-level, and further agents. A lower level’s purchases are attributed to the level above, and settlement and revenue sharing is split by level. Unlike a distributor, whose model is multi-level distribution, a multi-level agent still buys stock. Each level buys from the agent price list, and share is settled on a cycle from purchase volume or sales.
How the levels sit
- First-level agent: Signs with the enterprise and buys from the enterprise at the agent price.
- Second-level agent: Buys from the first-level agent. The purchase is attributed to the first-level agent, and share is split by level.
- Level setup: The hierarchy can be configured. Each level can have its own prices and share ratios.
How share is split
After a lower-level agent sells purchased SIMs to an end customer, sales attribution follows that agent chain, and share is split by the level ratios. Share from a second-level sale, for example, is divided between the first-level and second-level agents by the configured ratio. A distributor’s payment split happens automatically at payment. A multi-level agent is paid on a settlement cycle.
Typical use
A regional agent can recruit lower regional agents and cover more than one level. An industry agent can recruit agents in a narrower industry. The portal lets every level look up prices, place orders, see purchase records, and read share detail on its own.
Managing the hierarchy
The levels have to be recorded on the platform. When a lower level sells a purchased SIM to an end customer, sales attribution can be traced up the chain. Share is then allocated to the first level, the second level, and so on by the revenue-share ratio. A higher level can see the lower level’s purchase and sales totals. The agent price list can differ by level, and a lower level usually gets the better price. The platform has to manage the hierarchy and the data permissions between levels. The pattern fits regional expansion and a channel that reaches further down.
Settlement
Multi-level agents use settlement and revenue sharing. A settlement statement is produced on the settlement cycle. Each level’s statement includes purchase lines, sales lines, and the share amount. That is not a distributor payment split. Payment goes out on the cycle. The agent self-service portal needs level permissions: a higher level can see the lower level’s totals, and a lower level can see only its own data. This is a main extension of the channel model on the IoT Cloud Platform.
What each level does
A first-level agent signs with the enterprise and buys at the enterprise agent price. A second-level agent buys from the first level, that purchase stays attributed to the first level, and share is split by level. The agent price list can differ by level, and the lower level usually gets the better price. A regional agent can recruit lower regional agents. An industry agent can recruit agents in a narrower industry. The structure fits regional expansion and a deeper channel, and it extends the agent model.