Monday, December 22, 2014

MLM and Social Networks

Good Morning, all readers !!!
And a nice Hello to everyone

Having plenty of free time, so just thought of blogging something.
Here's one of the storiesnexperience post about MLM and Social Networks.

I was in Japan when I got introduced to this HealthCare company.
People said that they got reach in no time after joining this company.

I attended one of their brain washing sessions. The concept was simple,
   “Introduce someone and you get benefits. 
      And on every purchase made by him get more benefits in terms of percentage of the purchase”
Mathematically, it’s unstable model, so you need to control the limits of earnings, or the maximum  number of purchasers connected under you in the graph.
They rely on mouth to mouth advertising for expansion of this graph. The more it expands, the more profit will the people on the top of the graph get. The graph is filled with lot of hopes of big digit dreams. Many people back out after some struggling. There are ways to go to the top, some of which are fishy. There are plans which say “Spend More Get More”

A lot of negative opinions are present when this kind of MLM model is implemented physically with mouth to mouth advertising.
Only if we can trap the potential of this model with the social networks, 
carefully enough that the users at least get something rather than negative profits.

Simple implementations are Invitation Code systems.
In this one, you introduce your friend by using Introduction Code, and then when he registers using your code, you get the benefits. This is MLM of first order. 
In general, this could be used for any action with an action_code and action_benefits.

When we expand it to multiple levels, we need to build a strong graph.
One of the reasons why many of us quit while taking sessions from the the MLM companies, is due to the amount of effort required build a strong graph. You need to talk with many people and convince them to enrol in this scheme. You got to have free time to do this. 
What if we can use the social networks to do our job. 
It could be anyone, twitter’s followers/following network, facebook’s friend of friend network, and so on. On this network, you can clearly calculate which node gets the benefits from other nodes.
Integrating with social networks has lot of potential to generate profits.

This system can also be used for audience gathering for events.
You can have a facebook party event. People invite their friends to this party and get discounted fee. In no time, your event will be overbooked.

In case of buying/selling markets, this system will be similar to using people as salesman. You put any item for sale on some e-commerce site, and you generate a Selling Code for each registered user on that site. Then if someone buys that item with your Selling Code, then you get the benefits.
The seller does not have to put extra effort in pushing the product, while the idle users (just the free-surfing users) can get benefit for acting like salesman.

Mentioning the positives, there are negatives of this integration too !!! 
SPAMMING !!! 
Sending too many mails, or posting multiple times wont just do good until it is good quality content.
So that requires some good brain storming to build better relationships.

So let’s explore and share this new domain.
Please let me know your opinions on this topic!!!