Merging Multi-Level Marketing Systems With Segmented Commission Structures
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Solution Overview
Problem
Merging multi-level marketing companies with different commission structures poses challenges in maintaining the integrity of existing commission trees, often leading to member disorientation and income loss, as existing methods either keep companies separate or rearrange structures, which can be unsettling for members.
Innovation Solution
A system that integrates multi-level marketing companies with different commission structures by creating a merged commission structure, allowing users to have an infinite number of lines, with a Multiline MLM Merger Module that collects and processes user data from various MLMs, calculates commissions, and determines additional lines based on threshold values, ensuring seamless integration and retention of members.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If MLM companies with different commission structures are merged by keeping their commission trees separate, then the integrity of existing commission structures is maintained, but members cannot benefit from the merged company's resources and growth opportunities
Solution Approach 1:
The system segments the commission structure by creating separate commission tree representations for each MLM company while maintaining a unified user database. Each company's commission rules and calculation methods are preserved as distinct segments, allowing simultaneous maintenance of multiple commission structures within a single merged system.
Solution Approach 2:
The patent introduces an intermediary layer (the merged MLM system architecture) that sits between the different commission structures. This intermediary manages the complexity of multiple commission trees by providing a unified interface for users while internally maintaining separate commission calculation pathways for each company, thus enabling integration without forcing structural homogenization.
2Adaptability or versatility
If MLM companies with different commission structures are merged by attempting to unify their commission trees, then integration is achieved, but members experience disorientation and loss of steady income
Solution Approach 1:
The system implements dynamic commission structure management where the commission tree configuration can adapt to each user's specific company affiliation and historical data. The architecture allows the commission structure to dynamically select which company's rules apply to which user segments, providing flexibility for integration while maintaining stability for individual users through consistent, predictable commission calculations based on their original company's structure.
Solution Approach 2:
The patent applies local quality by allowing different parts of the merged system (different commission trees) to maintain their unique characteristics and rules. Each company's commission structure retains its local properties and calculation methods, while the overall system achieves global integration through the unified database and user management layer that connects these diverse local structures.
3Reliability
If MLM companies are merged by keeping them separate, then commission structure integrity is preserved, but member retention decreases as members may seek other MLMs closer to their original structure
Solution Approach 1:
The merged MLM system achieves universality by designing a platform that can handle multiple commission structures and company identities within a single system. Users can access and benefit from resources across different companies while their commission calculations remain tied to their original company's structure. This multi-functional capability allows the system to serve diverse user needs and maintain broad appeal, thereby improving retention.
4Adaptability or versatility
If MLM companies are merged with different commission structures, then resource pooling and growth opportunities increase, but the complexity of managing multiple commission trees increases
Solution Approach 1:
The patent resolves complexity by adding a new dimensional layer to the system architecture. Instead of trying to flatten and unify multiple commission trees into a single structure, the system creates a vertical dimension with a unified user management layer sitting above the horizontal layer of multiple independent commission trees. This dimensional separation allows the system to manage complexity by organizing data and processing logic across different architectural layers, reducing the burden on any single component.
Data Source
AI summary
*Disclosed herein is a system and method to any two or more MLMs to be merged into a multiline MLM system despite having different commission structures. Each member of the original MLMs is able to maintain their existing downlines without any changes. Further the existing MLM members have full access to the multi-line MLM commission structure, for example, a member of a binary MLM may now add a 3rd, 4th, 5th, etc. line if they choose. The multiline commission plan will be different than the commission plans from any of the original MLMs but this change should not affect the income of a large portion of users, and users that are affected by the changeover can be compensated or made whole on an individual level. In addition to this multiline commission plan, the commission structure of the original MLMs has been broken into several separate ‘types’ which together form a MLM system. These ‘types’ include the income received from downline commission based on position and the income received based on enrolling a member in the MLM, also known as sponsorship. These commission structures may be maintained after the merger for each specific MLM that was merged. This way members of the multiline MLM have access to both their original downlines and commission plan while still being able to take advantage of the features and commission plan of the multiline MLM. Members will also have access to a product tree MLM which is a separate MLM that is set up so that commissions made via the product tree MLM still are paid upline through the merged multiline MLM. The product tree MLM may be exclusive or cost-gated such that joining or continuing to be a member of the multiline MLM is incentivized by free or reduced cost access to the product tree MLM. The product tree MLM need not be controlled by the same person, persons, entity, or entities, as the multiline MLM.