A multilevel affiliate program pays your affiliates both on the wagered money of their referrals and on money wagered by players your referrals scout to the game.
Let's try to visualize it with an example, Steve is your affiliate, and he refers Alison to Luckydice and she becomes an active player. Now, John deposits money and plays a game after signing in with Alison's affiliate link. Therefore, Alison and Steve both qualify for a commission on John’s wagered money, but they each get a different commission percentage.