WebShop/ReferralId (2005-08-16 12:20:11)

WebShop related : how you can utilize the referral-ID

CompenSation/Distribution seems like it will work for development, but it's obvious now that it will NOT work for marketing - at least not in the very same form. We must make anyone involved in sales interested in indirect sales as well. With interest only in direct sales they clearly act against the group's interest (preventing new distributors to contact VEMS and jump on the wagon).

The recipe to cure this is simple, Amway (or someone else) invented it a long ago. A simple "referral" system. Also called multi-level-marketing or mlm.

What does it consist of ?

Please note that the referral system hierarchy has nothing to do with support. Support must be shallow, 2..3 level.

The referral is only used to make everyone interested in extending his "network" subtree, and also interested in direct sales.

This will have nice effect on tuningsoftware and docs, since many people will realise that these are essential for the system to work (scale) and bring them benefit. There is no sales profit without good product.

We must check WebShop prices again, but it's very important to notice that distinguished retail and reseller prices alone cannot cure the problem !. This is proven. The reseller gets the parts cheaper, but that alone does not encourage the reseller to reveal VEMS !

I'm pretty certain that there is no other way to encourage our distributors to reveal VEMS instead of hiding it.


TODO

VemsExecutives/Ofbiz must provide infrastructure for this.

I guess with oscommerce it would be tough to apply the 5% discount on condition the parent referralID is valid. But we will finally solve this, and it will work immediately with manual payment processing (IBAN or domestic transfer: check/money order choice in WebShop).