Finding feet in the conventional market is hard for new businesses, which prompts many of them to take the MLM (multi-level-marketing) route. Also known as pyramid marketing, this strategy often helps them sustain themselves amidst tough competition.
That said, every business structure has its advantages and disadvantages. While the MLM model enables businesses to set aside the market structure and reach consumers directly through the sellers in the pyramidical structure of the company, it also brings in a few drawbacks. These include fear in the sellers about arbitrary changes by the company in seller status/payment/business model, mistrust and rivalry among various sellers, presentation of wrong information, etc. to the consumers.
Is there any solution that may help MLM enterprises tide over these challenges?
Thankfully, there is — smart contract MLM software.
Opting for such software helps MLM enterprises negate the drawbacks and allay the fears of their end consumers.
You may be raring to know how it happens. The smart contract certainly doesn’t make the parties involved gulp down a magic pill. What it does is to automate the contract!
How it works
When a condition is fulfilled, the algorithm triggers the pre-determined statement. The algorithm is immutable once agreed upon. If it is still hard to comprehend, here is an example. Suppose seller A joined company B under a contract that $5 will be credited A’s account when a downline joins their network. Smart contract based MLM software will execute the contract right away once the downline hops on. On the other hand, a regular contract requires human intervention, which also opens it up to fraud or arbitrary action by a party.
A smart contract is beneficial for all parties
In the current scenario, the right way for MLM businesses to move ahead is to collaborate with a reputable service provider to develop for them a smart contract based MLM website. This step will automate operations to a great extent, simplifying things for them as well as the sellers who trust them enough to join. It will make things easier for all parties involved.
Discuss with any of your peers who have adopted smart contract and they will vouch for the fact that a smart contract is not a hype but a sort of revolution in the industry. It will change the way people are going to perceive your company. It is time to shed all your apprehensions and join the chorus in the industry about moving on to a smart contract-based structure.
Based on blockchain technology, which is the talk of the town these days, these contracts are changing the way MLM industry worked. The trust of the investors on MLM enterprises is slowly getting restored. Companies that have opted for a smart contract based MLM website will surely be high on the radar of prospective sellers as well as consumers.
Antier Solutions is a frontline company when it comes to developing smart contract MLM software. We provide white label smart contract based MLM software that can be quickly launched into the market under your brand name.
Schedule a free demo of our white label MLM software or connect with our subject matter experts to share your business needs.