How to distribute products in generation or repurchase plan when you can’t spend 250-500 rs on courier each and every time. This is a big question in front of mlm company owners.
In this Blog, we will tell you about all the possible solutions to this question so you can easily provide/distribute products to your down line.
- Distribution Model
- Why it is mandatory to pre decide your distribution model?
If you are introducing dish wash liquid, soap, groceries, detergent powder or any FMCG products for your multi level marketing start up , this is going to be the most valuable Blog for you to learn from.
Many people face issues like high transportation cost, high expenditure on management, wear and tear, availability and stock issues while sending etc.
How to get over this? How to get a method to safely provide your products to the customer?
Let’s read about the six major ways to distribute the products.
2. Distribution Model
In total, there are 6 types of distribution models available for you to distribute your products to your end consumer.
- Open E-commerce
- Closed E-commerce
- Pick up centres
- Company owned Franchise
- Home Shoppe / User owned franchise
- Hybrid franchise
1. Open E-commerce
This method is most common where your website will have a complete
E-commerce look. Your customer can order multiple products.
On this order, they have to pay logistic charges. Pin code is assigned logistically which improves online customer experience about the availability of the product in that area.
Plus point of this method is from the first day you can cover large geographic area.
Biggest Challenge : Logistic management is a huge challenge to come across if you go with this platform. But of course, it can be easily managed with the help of multi national companies like YAKS Group.
If you know how to successfully do inventory and stock management, you can easily outperform in this business.
MLM POV : When ever any user will go into www.abc.com, make an account and do any shopping, they will get the corresponding BV’s by the company and now they can earn from the system.
2. Closed E-commerce
This method is very simple to understand. It behaves completely like an e-commerce but none of the users can openly purchase the product from front panel itself.
MLM POV : If imagine products are only being displayed on the front panel or you can say front website. People can’t buy or order, just viewable.
Here if you want to purchase you can do that from fund wallet only. For that you have to login your id and do fund request to admin.
Only the registered users will get to know the MRP, PV or BV of the product. Any random user surfing the website won’t be able to check it.
3. Pick up Centres
Let say company is having good business or leader team in some particular state. To save delivery or courier charges, company will rent a go down and fill it up with products.
Any new joining’s , they can directly pick up products from that point.
Pick up centres are very different from actual shops in many ways.
Users or customers have to go, show their invoice, pick up product and leave. There will be no open choices, no transaction, users can’t pick up anything they want.
Advantages : Company or end user don’t pay any logistic charges, quick availability of products, less labour cost, time saving or company.
Let’s move on to fourth model of how to distribute products in generation or repurchase plan.
4. Company Owned Franchise
Traditional or MLM companies also have their own franchises where there are choices. Customers can select any product they like from the store and proceed for the billing.
If you are a new customer, your id is registered and you get corresponding BV in your network .
Existing users can share their mobile number or registered id to get BV’s in their network.
Expense : Need to hire Employees for the store, rented space, Electricity bills, Internet package, Computers, surveillance system, inventory and GST management. Company have to bear every charges of the store.
Major thing to worry about in company owned franchise is management. In Pick up centres there were no aka ‘0’ financial transactions.
5. Home Shoppe or User owned franchise
In this case company gives permission to users to open their own shopee in their home or workplace.
‘ Home shoppe‘ is small places and other is ‘ User owned franchise ‘ which is a commission based shop opened by the users who are promised to earn a certain margin on each sale.
Advantages : User manages everything like electricity, employees, internet, system etc. and not company.
Here user is the ultimate responsible of the financial transactions done in the franchise, management and all the expenses.
6. Hybrid franchise
This is the last type of distribution model which MLM companies do. Let’s say if there are certain places where company knows, lots of joining’s are going to come.
There company open their own franchise and also gives an offer to users to open their own franchise.
These were all the distribution models which 99% of the MLM companies use to distribute products in India.
3. Why it is mandatory to pre decide your distribution model?
You have to pre-decide which model you have to choose according to your product range.
This is mandatory in the beginning since your software is going to be developed accordingly. Every model needs different set of logics to provide you the ultimate results.
Invoice is prepared differently which depends on which model you choose.
I hope we cleared you all the details regarding how to distribute products in generation or repurchase plan. Stay tuned for upcoming blogs.