MLM Merger System Reorganizing User Structures
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Solution Overview
Problem
Merging Multi-Level Marketing (MLM) companies with different commission structures poses challenges, as existing methods often require separate maintenance of structures, leading to member disorientation and income disruptions.
Innovation Solution
A Multi-Level Marketing Merger System that reorganizes user connections and positions from Unilevel, Binary, or Matrix MLMs into a Multiline MLM, creating crossline connections to reconcile commission structures and maximize earnings, utilizing a system comprising a Multiline MLM User Database, Sales Database, Commission Module, Commission Rules Database, Additional Line Module, and Merger Module.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Adaptability or versatility
If two MLM companies with different commission structures merge, then the companies can consolidate resources and expand market presence, but the members experience disorientation and income disruption due to conflicting commission structures
Solution Approach 1:
The patent segments the merged MLM organization into multiple independent commission structures (e.g., unilevel, binary, matrix) that can coexist within the same company. Each segment maintains its own commission rules and calculation methods, allowing members to continue earning according to their original structure while the company benefits from consolidation.
Solution Approach 2:
The system implements a universal MLM management platform that can handle multiple commission structures simultaneously. The software system provides multi-functional capabilities to calculate and distribute commissions according to different structures (unilevel, binary, matrix) without requiring separate systems, enabling the merged company to serve diverse member bases with varying commission preferences.
2Reliability
If the commission structures are kept separate after merger, then each structure maintains its integrity and members' earning expectations, but the organization cannot fully leverage the benefits of consolidation
Solution Approach 1:
The system maintains separate commission calculation segments for different structures (unilevel, binary, matrix) while integrating them into a unified organizational framework. Each segment operates independently with its own rules, allowing commission integrity to be preserved while enabling overall consolidation benefits through shared infrastructure and resources.
Solution Approach 2:
The patent implements a nested structure where multiple commission structures are contained within a single MLM organization. The unilevel, binary, and matrix structures are nested within the same company framework, allowing them to coexist and benefit from shared resources while maintaining their distinct commission calculation methodologies.
3Device complexity
If the commission structures are merged into a single structure, then the organization achieves uniformity and simplified management, but members experience income disruption and disorientation
Solution Approach 1:
Rather than merging into a single uniform structure, the system segments the commission calculations into distinct modules for different structures. This allows simplified management through a unified software platform while preserving the financial reliability of members by maintaining their original commission calculation methods.
Solution Approach 2:
The system allows parameter changes in commission rates and calculation methods to be applied selectively to different segments. Members can have their commission parameters adjusted or maintained based on their specific structure requirements, preventing income disruption while enabling management flexibility.
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 an 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.