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I am in MLM proyect where I need to run some simulations of the MLM binary system, that I want to put in place into place for the compensation plan.
The compensation plan is crucial for the future of the company and financially SUSTAINABLE in the long run, otherwise we will need to shut down the whole thing in 6 months !
I have the scratch of the model in my mind, since is a copy of another MLM company compensantion program, where i was, but i need to be sure, the compensation program is sustainable in the long run
The details I can give you now are these:
Right now the only thing that i have clear is that the program should be sustain itself with 1.0 % only.
When i say 1%, i refer. 1% of the money transfer that people will make to the program in a monthly basis. so, with that 1% must sustain the pay out system for all members. The payout system could have a roof with no problems, meaning, Meaning, the program only will pay up to; lets say 2.000 dollars per month to ever member, and if they want to earn more money, they will need to enroll themselves with another code into the system etc.
The payout model that my previous mlm company was something like this:
For every 100 dollars transferred into the company program, the members will getting 15 points.
so every time when someone transferred that money into the system, a member will get those 15 points
Now the second part of the payout system work like this:
All the points were being added up in a infinite way to the very top, from the bottom of either the left or right hand side of the binary system.Either right or left side. The binary system has always 2 sides, left and right.
so lets say in this example:
person 1 produced 15 points because of his or her transfer AND accumulated 60 points because of person 2, 3, 4, and 5
person 2 produced 15 points because of his or her transfer AND accumulated 45 points because of person 3, 4 and 5
person 3 produced 15 points because of his or her transfer AND accumulated 30 points because of person 4 and 5
person 4 produced 15 points because of his or her transfer AND accumulated 15 points because of person 5
person 5 produced 15 points because of his or her transfer ( this person is the last one in the chain)
next, when person 1 gets a minimum of 100 points in one of his binary side (left or right) , the person 1 for instance, gets 10% in us dollars of those points, lets say he/she accumulates 100 points in left side and 200 points in the right side.
the person 1 gets paid 10 dollars. and starts a new cycle with 100 points on the right side and 0 point in the left side.
now the pay out part,
those 10 dollars must be "stored or be availabe in the mlm Company for the pay outs " we can call this: "the payout system fund", the money that will come to this fund will come when everybody transfers their monies into the system. their 1% out of every transfer.
The million dollar question is:
would the system have enough money to pay high commissions when the group grows, lets say something around 10.000 people or more ???
This is what i need, the software that will do the calculations automatically, asking me for the minimum %, from people, in order to finance the " pay out fund" We are confident, that we could give out a 1%, but if its absolutely necessary we could as high as 1.5% ( but we don't want that really, because we almost wont get any profit).
If you feel you could build this program, so i can run the simulations, with the different percentages, please do let me know.
This software will be link to the back end of a web site later on, but before the web side, i need the software to check if this will be financially possible or not
Looking forward for your proposes