Terms like Multi-Level_Marketing (MLM), pyramid selling, network marketing, structured sales or referral marketing (see Wikipedia Multi-Level-Marketing) become more and more known, but somtimes they have a slight smell, because often promises cannot be delivered and efforts to reach certain goals are massively underestimated.
When we are going this path, the reason is, that we are convinced that our products are very suitible for referral marketing, because they are targeted at a huge mass market. Referral marketing is working, when people are convinced the product is worth it's money. There has to be enough revenue to overproportionally spend money on sales, so that sales people get a fair share on whatever level of the structure they are.
There are a lot of methods to bring a product to market. Most often this is done with immense marketing campaigns. A lot of money has to be spent forefront. Annother method ist to rely on good visibility in search engines and referring websites. It's expensive too, to get the ball rolling. The third method is referral to your observers, friend and family. It's a fact that most people on the planet are just a few references away.
We go for the third method, without neglecting good visibility in search engines and social networks. For a startup like us, this is the path of least risk. Referral marketing in our view has no value by its own. It's our method to spread our messages on many channels and brings to our active users some good passive income as a side effect.
Like many other hierarchical sales models we are starting with a three-children-hierarchie of 1 - 3 - 9 - 27 - 81 - 243 - 729 - 2187 nodes on each subsequent level. But we are departing from this strict structure, by allowing partners that have completed 7 levels to open a fourth, fifth etc. subtree as soon as all previous subtrees have been filled at seven levels. So there is no unnatural limit on the potential personal income.
We think, it's important, that everybody has equal chances to develop himself, regardless at which time and on wich part of the sales tree he is joining us.
For every node within the structure there is a clearly defined base income, that is defined by the following table, assuming that the average revenue per node in the structure is 10€ ( income is scaled up or down from this average linearly by the actual average revenue per node in his subtree):
|Number of completely filled layers (Level)||Number ofuUsers in the subtree||monthly income|
Partners on level 7 can add 765,33 € per month fro every additional completed line.
Every partner has its own subdomain within ulango.tv (the so called partner link) together with a personalized page, where he can present himself. Personalized Pages are visible to the search engines. So there can be organic traffic to his informations. When a user visits the partner link and registers on that page, the partner becomes the contact person or "sponsor" of the new user. Whenever users become connected to the sales structure, this can only be done within the 7 sub-levels of the sponsor.
Some leverage for each partner is created when his or her references are actively building reference trees themselves. And of cause active references are most effective, when they are placed near the top of his hierarchy, because a larger subtree can be filled by other people than himself. In sales hierarchies, we know about, the partner has no way to direct the placement of new references. This can lead to imbalances, because inactive users may block the top level places in his hierarchy.
In order to give the partner more flexibility in structuring his subtree, there is a unique feature in the sales structure of ulango.tv: Every partner has his own reference tree. He may place references into his structure at his own will, e.g. in the order of # of subreferences. He also may place a user, of whom he is convinced to be a very active sales multiplier.
Of cause there ale limits to this "delayed placement into the sales structure". As soon as an unplaced user decides to place his own references and reaches a payed level, he will be placed recursively into the structure of his sponsor. This will be done such that an optimally ballanced tree is developing.
References that are not comming via partner links, e.g. directly from google on ulango.tv, will be placed in part by the ulango.tv management. This will never be done into the sales structure directly, but into the reference trees of users. So we are distributing references as gifts. The distribution key is variable and will be used by ulango.tv to develop certain parts of the sales hierarchie as an incentive and development program. There will be more details on this in the near future.
But regardless of this "controlled reference distribution" al least 50% of the anonymous references will be equally distributes amongst users. Only precondition ist, that they have at least 3 references in their reference tree.
So with spill-over a user may get references to users that never saw his partner link.
Every user may inspect the status of his partnership with informations about his sponsor, his upline, his downline and his reference tree. For pricacy reasons only his sponsor and his own references are shown by name. All other nodes ore anonymized.