A comprehensive solution for MLM business from Avivi
7 April 2023next article
Today, most of us are consumers of products sold through the sales channels of network companies, even if we do not even know it. Also, many people around the world are involved in certain MLM structures and receive additional income, in fact, for a recommendation when making a purchase. And even fewer people actively work in this direction, but also receive the main income from such activities. And without modern solutions in the field of information technology, it would be extremely difficult and long for them to do this, and it would be impossible to prepare for opening one's own business in a seemingly oversaturated market. However, a recent case from Avivi proves that with the right software developed for a specific business, anything is possible.
Briefly about the main thing
Multi-level, network marketing, or "MLM" for short, is a special type of business organization by direct selling companies, where a participant can receive income not only from his own trade, but also from the volume and success of other participants involved in the business. The method has been working since 1934 and is successfully used by world giants whose names are known to everyone: Amway , Avon , MetLife , Faberlic and others. This is one of the most effective sales methods in the world, so if you want to make money in MLM, it will be possible to do it with a probability of 99% if you organize your work correctly, follow corporate rules and competently build an effective structure. The last point largely depends on the tools used, and the more advanced they are, the easier the management will be and the greater the benefit.
Like every modern business, network brands develop their own sites, but there is a big difference: such portals are not just online stores for selling products, but are a kind of portals for members, where you can manage your own structure. Otherwise, the efficiency of the network business will be too low and unattractive for users, which is definitely a signal to attract new participants.
Features of the technical task
Although network companies build their business on similar foundations, no two MLMs are alike. It's like saying that Tesla is Porsche Cayenne and Toyota Prius are the same because they are all passenger cars. Therefore, a large number of ready-made solutions for multi-level marketing in the IT market are of two types: highly specialized for a specific type of activity (for example, life insurance) or universal. In the first case, there may be a lack of necessary tools due to software limitations and the lack of business scalability; in the second, sending a variety of options, with which the developers seek to please every entrepreneur, which inevitably leads to an increase in the bill for use.
Our company was approached by customers who dared to compete for a rather sweet segment of the market — cosmetics. At first glance, this is a risky decision, especially against the background of many years of activity of the above-mentioned sales giants in this area. However, a flexible compensation model, a clear and transparent structure, and a competitive product can all contribute to success, even in an oversaturated market. There was only one thing left - a comprehensive IT solution in the form of the company's main website, which allows you to sell products, build a network and effectively manage participants in the entire process. All theoretical foundations already existed on paper in the form of the company's business plan. The task of Avivi specialists was to turn the booklet into a technical task and then into a complex product.
Ready-made and custom solutions
Our team has been developing effective websites since 2007, and our experience in the web is extremely rich, but in this particular case, the front end is absolutely secondary. In the conditions of the short deadlines planned by the customer and the difficult situation with the war, the issue of appearance was solved at the expense of a ready-made template. The main component was a custom — that is, a specially created — part that interacts with the site via API and operates precisely all the processes related to the development of the structure and its coordinated work. It is possible to get here from the menu item "Partner's Cabinet" of the main site. This component, written in Phyton, is hosted on the customer's server. It uses its own user-friendly interface, which is intuitive for any user.
To implement the custom part, our specialists thoroughly studied the company's marketing plan and the functioning of the MLM structure , followed by its digitization . The main unit of the structure is the user's personal account, which is a participant in the overall process and has all the necessary tools for carrying out commercial activities and building one's own structure. The system takes into account branching in teams of consultant participants and impeccably calculates all personal and network calculations in internal points (BB) — a special corporate unit.
A personal account provides the following opportunities:
● See your own status, sales schedule, personal and group income, your own referral link;
● Review the structure: your own position, your mentor, the network of involved consultants;
● Manage orders, track their status;
● View financial status, calculation of rewards for closed periods;
● Have constant access to the current trade catalog and other corporate information.
For users with administrative access, there are also advanced options for viewing the status of the entire network, all orders, and finances. It is possible to export data to MS Excel spreadsheets for the convenience of further analytical work.
One of them is the dropshipping function , which helps in finding new customers and increasing sales. The essence is the formation of special orders for buyers with automatic calculation of the margin bonus. Depending on the status of the user, it can be up to 30% of the cost of the product. When the dropshipping function is activated , the user selects products from the catalog and forms an order with regular prices to be paid by the buyer. The consulting option is available already with applied bonuses, which after payment are automatically transferred to his account at BB.
Another useful tool is the ability of the mentor to make orders on behalf of people in his structure. This greatly facilitates the adaptation of new network members, promotes their faster growth, and also allows the mentor to balance group turnover. By the way, to simplify the process of filling the basket, consultants can use only article numbers: entering the desired code in the corresponding field guarantees adding the desired product without a tedious search in the catalog.
Also, the rules for calculating the remuneration, which change with the release of updated product catalogs, also required a special approach. Almost every time they are different: depending on sales volume, BB enrollment, group or individual turnover, etc. Therefore, the solution from Avivi takes into account any updates of the rules and is able to perform all possible calculations according to the conditions of the shares.
Another interesting feature is related to the availability of personal incentives for employees. According to the rules of this particular marketing plan, they are available from the time spent by a person in the company. In this way, the system monitors the participant's registration date and offers new gifts to the employee over time.
So, this time we briefly talked about the features of a complex solution: a website and a personal account for the development of a network business, where a custom solution is the key to the coordinated work of the entire multi-level team. Completed integrations with the accounting system, delivery services and connection of the payment system remain out of consideration. But these are usual processes for the Avivi team, the implementation of which we have already mentioned more than once. The main thing is that the new business has started work and is already showing impressive results using IT solutions from our company. So we will be happy to help you earn too!
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