Loyalty circuits with multi level marketing (MLM)

A loyalty circuit is made of many companies which generally share the same loyalty campaign (discounts or points collection).
Softvision Fidelity Card app allows you to use also the typical multi level marketing (MLN) techniques with the aim of increasing the number of companies involved, or to increase the profits of the circuit.

The figure of the promoter

In the multi level marketing the figure of the companies promoter it's very important. Its job is to identify new companies to include into the circuit. The new company acquired will be associated with that promoter.
But its job does not end there: he may search for new promoters and train them for the circuit. Of course new promoters may be directly linked, according to a hierarchical structure, to the promoter that have presented them.

Companies

In such kind of structure every company, with one or more stores, depends directly from a promoter. Each store of a company must correspond to the promoter a portion of its revenues (generally a few percentage points). This share will be divided among the various subject of the circuit. It's possible to set this percentage (network commission) within the single stores of the company from the main screen of the control panel.

Level fees

We've seen that store gives a revenues share to the circuit (network commission). Now let's see how it's allocated among the various promoters of circuit.
Each promoter may be linked to other promoters introduced by him in the circuit (hierarchical tree structure). The fees generated by the network companies are divided among the various promoters with percentages based on the promoter level in the tree structure.

The tree can also be viewed from the bottom upwards. Starting from any promoter it is possible to trace the tree upwards along a chain of promoters whose number is the downline depth that we've seen.
From the previous table we can see that at each downline depth there is a series of percentages (whose sum is 100) representing the shares of the network commissions generated by the company that must be divided between promoters of the downline row.
Suppose that in a store of the company D will made a purchase of 100 euro. Since in this store you have set a network commission of 10%, the committee to be given to the circuit will be 10 euro.
Now let's see how this share is distributed: Company D was entered by promoter 3 that is under the promoter 2 which in turn has been presented by the promoter 1. So we have a depth chain level as 3. This means that we will have to share the 10 euro according to the percentages in the third row of the table of fees. These percentages are, starting from the “last” promoter, respectively 70%, 20% and 10%.
Then the 10 euro of commissions will be divided as follows:

- Promoter 1: 1 euro (10% of 10 euro)
- Promoter 2: 2 euro (20% of 10 euro)
- Promoter 3: 7 euro (70% of 10 euro)

Features dedicated to multi level marketing

In the MLM menù of the application there are all necessary functions to manage the multi level marketing circuit: