User 1 will receive the following emails:

A affiliate sale notification for order 1.
A affiliate recruiter sale notification for order 2.

User 2 will receive the following emails:

A affiliate sale notification for order 2.
A purchase confirmation for order 1.

User 3 will receive the following emails:

A purchase confirmation for order 2.

Affiliates receive 5% of the order total. Affiliate recruiters receive 1% of the order total.

As an affiliate or recruiter you will be notified via email for every sale made through your banner or one of your recruited affiliates banners. You can also check the Affiliate Compensation Report for your current statistics.