10.13. Multi Level Marketing Systems (MLM)

Starting with v14.10. SocrateCloud provides it's users a way to register sales for multi level marketing systems. The functionality can only be used if the SMLM component has been purchased and activated.

The initial setup is described below:

1. Defining a Sales Price List - the MLM functionality uses a sales price list and version to which specific discounts are applied on each level;

2. Defining Discount Schemas - through discount schemas, percent discounts can be applied for each MLM level;

• • Discount Type = "Flat Percent"

  • starting with v14.12, the discount schema organization can be a parent organization, in which case the schema can be used on documents registered on all subordinate organizations;

3. Defining Business Partner Groups - business partner groups are used to define the MLM levels (e.g. "Gold Customer", "Silver Customer")

• • • Discount Schema - every level will have it's own discount schema (defined at step 2);

    • Multi Level marketing = checked

      • Customer Target - number of customers required for the level;

      • Sales Target - total invoiced sales amount required for the level (in EURO);

    • Bonus %

4. Defining Business Partners - business partners are defined using the Business Partner window. We recommend that you define the customers starting with the top level:

• • • Customer tab -> Representative - select the business partner that recruited this business partner;

    • Vendor tab -> Representative = checked;

    • Cards tab - select the corresponding card for this business partner, and the validity date. The system will automatically add records to this tab if:

    • the customer reaches a superior level;

    • when the validity date is extended;

To correctly register sales invoices these must always have a value in the Representative field. Once completed, the system will automatically register the amount, in EURO as a detail to the Representative's card. As a result, at any time, for every customer, the referral list and accumulated sales amount can be checked.

If, for any reason, the sales were not registered on the correct card, the Cards Synchronization process can be used to recalculate sales values. The Date From parameter is used to filter the cards by validity.

The Customers Group Revaluation process is used to promote or demote customers to MLM levels. We recommend that you run this process automatically, using the Scheduler functionality. The process will check for every business partner if they respect the conditions (described at step 3) defined for each MLM Level. When promoting or demoting a business partner the system automatically defines a new card for the customer with a new validity date.

• Business partner Group - the names of all the MLM Levels separated by ";" and no spaces (e.g. Gold;Silver;Premium;Member);

• As of Date - date used to determine the card validity;

• Email, Mail Template - used to send notifications regarding the process results;

The Sales MLM Report is used to display, for a representative, the total sales, made directly or by subordinate representatives, on all existing mlm levels.

The Agents hierarchy Sales Report is used to display a list of representatives and related information: MLM level, sales, bonus value. Representatives for which no transactions have been registered in the period selected as a report parameter, will not be displayed.