- Multi-level marketing, as the name implies, has different levels of salespeople working to sell a product or a service.
- If a person makes a sale, they get a commission on that particular sale.
- In addition, there are also referral bonuses reported to the people in the levels above the person who made the sale, earning the name of this type of business.
Multi-level marketing or MLM as it is commonly abbreviated has been one of the most popular methods of marketing in recent history. What contributes to the immense popularity of MLM businesses is the fact that it opens up and learning opportunity in a territory that was never taught to have existed. However, due to the extensive occurrences of scams, the MLM business has lost its luster.
The challenges in the MLM business
It cannot be denied that some MLM schemes were created with the sole purpose of scamming people. However, even some genuine MLM businesses suffered because of the malicious intent of a few people.
To understand the way these challenges have impacted the business, it is important to know how an MLM works. Multi-level marketing, as the name implies, has different levels of salespeople working to sell a product or a service. If a person makes a sale, they get a commission on that particular sale. In addition, there are also referral bonuses reported to the people in the levels above the person who made the sale, earning the name of this type of business.
The sign of prosperity for an MLM business is the number of people in the network. The growing number presents challenges to the business. On one side, it becomes notoriously difficult to trace a particular seal all the way to the highest level in the multiple layers. When the numbers are huge, the number of sales also increases and it becomes a challenge to fulfill the payment of commissions. if we were to look at this scenario from the other side, it is quite evident that if the MLM business solves these two problems, it is bound to become more efficient and trustworthy. The basic problems can be simplified into two simple solutions: automation of payments and accuracy in traceability.
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TRON – the answer
Let us now digress a bit to look at the new digital, immutable, transparent, and secure ledger called the blockchain. Although the blockchain is predominantly associated with cryptocurrency, it has quite a lot of applications. If you were to read the attributes of the blockchain again, you will infer that it could be a potential solution for the problem that the MLM industry faces right now.
In an exclusive endeavor to address the MLM space, a new kind of blockchain was created and it was called TRON. TRON was founded in 2017 in the city-state of Singapore as a nonprofit. It is a decentralized platform equipped with high scalability, truth, and availability for all decentralized applications built in the TRON ecosystem.
The native token of the TRON network is called Tronix, commonly abbreviated TRX. The coin has a staggering market capital of about $2 billion and there are about 71 billion coins that are in circulation currently. Market experts predict that the coin will be worth about 5 1/2 cents by 2023 which can be considered steady growth. Since TRON is open source, you can develop your own TRON apps for different business verticals. You can even garnish your app with features and plug-ins. The scalability of TRON ensures that everyone right from an individual to an established enterprise can use this blockchain for smooth and streamlined functionality.
TRON has all the credentials it requires to be the perfect panacea that the MLM industry was looking for.
Perhaps the biggest advantage that contributes to the relevance and suitability of TRON is the transaction speed. TRON has the potential to execute transactions at a staggering 25,000 TPS. This is significantly higher than that of the mainstream blockchains like bitcoin and Ethereum.
Inherently, a blockchain is transparent, making it traceable. Therefore, attributing a specific sale to the right person becomes simple and straightforward. Another feature of the TRON blockchain that comes to the forefront is immutability. The records that are once entered on the blockchain are impossible to tamper with unless a universal consensus is achieved. As you can guess, universal consensus cannot be achieved for fraudulent transactions!
At the epicenter of the blockchain lies the TRON smart contract for MLM business. A smart contract is a self-executing program designed to get triggered only upon certain conditions being met. It is almost impossible to circumvent the restrictions and regulations of a smart contract within the blockchain. A TRON smart contract is automated and it can function without any human intervention.
With this Smart Contract MLM development on TRON in place, the payment of commissions can be automated. Combining this with the performance of TRON, the payments are almost immediate, much to the delight of MLM users. Since the entire ecosystem is automated, it also renders obsolete, the concept of middleman and intermediaries in the MLM business. Therefore, the cost associated with these operations also reduces, directly transferring the benefit to the customers.
There might be questions on the transaction fee, also called the guest fee in the context of the blockchain. In stark contrast to the high performance of TRON, the cost per transaction it’s incredibly low, making it the ideal candidate for an MLM business.
If you remember, the TRON project started as a nonprofit and is completely decentralized. Therefore, the entire MLM business has the capacity to infinitely because there is no single owner or even an office or a system that can be targeted to collapse the entire network.
Has it worked?
There have been a lot of MLM businesses that have used the TRON blockchain to power their way to profit and success. Smart contract MLM like Forsage is one such TRON smart contract MLM platform that has proved to the world in numbers how powerful TRON is when it comes to being used as the base platform for the business and all its activities. Forsage handles about $2 million and 16,000 transactions every week.
Now that the relevance and versatility of TRON have been approved, it has been in the interest of a lot of crypto entrepreneurs to start their own TRON-based smart contract MLM software. There is absolute certainty in the fact that a smart contract-based MLM software on TRON is profitable.
The first step towards building a TRON [TRX] smart contract MLM software yes to invest in the process of TRON-based MLM development. A lot of reputable blockchain development companies specialize in building smart contract-based MLM software on TRON. If you can get in touch with them, they will take care to understand your requirement and present you with a perfect MLM solution for the crypto entrepreneur in you.