Footnote:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments March 21, 2023 erstellt
Description:
To many disappointed recruits, Multi-Level Marketing (MLM), also known as Networking Marketing (NM), seemed to be the answer to their financial problems. Epixel, an MLM software company listed the top 100 MLM companies in 2023, and four of them were founded before 1981. Furthermore, on average, the income of the top five companies increased by 3.2%. Thus, just like Bitcoin (BTC) in the crypto space, MLM has stood the test of time. In essence, many companies are now embracing the concept of MLM to some extent. However, the same blooming industry has been the breeding ground of many financial scandals recently, particularly in the crypto space. The use of MLM in the digital world is gaining tremendous momentum, mainly because it does not involve the selling of physical products. Furthermore, everyone is looking for an opportunity to make extra income, thereby making MLM very lucrative in the crypto space, particularly in Africa where poverty and inequality levels are significantly high. Thus, the main objectives of this study were to (1) elaborate the shortcomings of the current MLM compensation plans, (2) discuss the core principles to be incorporated in a downline centered compensation plan (DCCP) structure, (3) develop a new DCCP structure, and 4) propose new bonuses under the new DCCP structure. It was found that all the current compensation plans put are upline distributor (sponsor/recruiter) centered (UDC), instead of being downline distributor centered (DDC). The core principles used to develop the new compensation plan were derived from society, business world, and nature. The developed DCCP structure has a tree shape, a significant step towards addressing the current tainted pyramid shape. Additional bonusses under the proposed DCCP include mentoring bonus, deep root discount, wide root/wide branch bonus, thumps up bonus, oxygen champion bonus, renewal discount, preferred upline bonus, and thank you bonus