In order to have both administrative and operational control
of a direct sales business model with a multilevel compensation plan, it is
necessary to have a qualified system that can respond to the different
challenges that are continuously handled in this industry.
We identify below some of the most important aspects that
the company's MLM Platform must handle:
1. Genealogy
2. Commissions
3. Incentives
4. Order processing
5. Inventory Management
6. Financial Management (Payments, billing)
7. Administration & Access to distributors
8. Communications
9. International Expansion
10. Reports & Statistics
1.
GENEALOGY MANAGER
Compensation plans use genealogical structures to define who
sponsors who and to define among other things the line of payment of
commissions (Uplines to which the system must pay commissions generated by the
commissionable volume of a product order). The Genealogy-type structure serves in
MLM Software to define:
Those who receive the commissions for each particular sale
that is made to a consumer - client.
What percentage of the commission for each sale will receive
each Upline (line of sponsor's Ascendants from the Distributor (Line of
commission payments) that makes the sale)
What to do in the case, when an Upline distributor does not
meet its minimum performance quota?
If an error occurs in the "relational links" between
[Sponsors <=> Distributors] of the genealogy, assignment of commissions
to Distributors would be incorrect and the sales force would lose confidence in
the company. This mistrust would cause difficulties in recruiting new
distributors to the business opportunity and many active distributors will seek
other opportunities and end up leaving the company (attrition). Therefore, the
accuracy of genealogical "relational links" is of paramount
importance to the success of a network marketing company, MLM Software.
The Genealogical structure of a Compensation Plan imposes
unique and challenging tasks for the company administrator who must be in
charge of managing the thousands of distributors' relational links (Distributor
Sponsor) accurately.
The tasks associated with the "relational links"
of Genealogy are:
Sponsor Change:
If a distributor is entered into the System using an
incorrect sponsor, this "relational link" must be corrected
immediately. From time to time, a reseller will request a "sponsor
change" from the system administrator. Some companies will allow you to
make this change while others will not. This change can become quite complex
and will require not only change the Distributor Sponsor but also change the
records of all Distributors who have been personally sponsored by the distributor
who requires the change, MLM Software in India.
Termination:
When a distributor resigns or when deemed inactive by the
company, it must be removed from the genealogy. This elimination process
requires the Multilevel Software to realign all of the "relational
links" so that there are no "holes" in the genealogy. For
example; If Maria sponsors Juan who sponsors Carlos and Yenny, when Juan
resigns, Carlos and Yenny must be reassigned to Maria, MLM Software in India.
Re-establishment:
A distributor can be deleted from the system for various
reasons. In some cases, a distributor may request that you "re-enter the
System". When a Distributor is reinstated, it must be restored to its
original state, including its Rank or Title, located under its original sponsor
(or perhaps under a different sponsor), and with its original downlines intact
(or not, depending on Of the company's policies). In addition, a historical record
of all changes must be kept, MLM Software in India.
Other functionality of genealogy management includes:
All changes in the "relational links" of the
genealogy must be recorded by date and time so that the support staff can
respond to distributors' concerns and to help resolve issues that may arise in
the genealogy, MLM Software in India.
A Distributor who has disassociated from the company, should
never be removed completely from the database, taking into account the
possibility of its reincorporation. However, an unrelated distributor may not
appear in the genealogy, nor be taken into account for the calculations of the
Commissions. A record of your earnings is also required, in the case of a tax
audit, MLM Software.
