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Blog date 01-01-2021
Category : Ecommerce

Why Online Store Is Important In 2021?

An online store is an investment. Before you invest in anything, you work out to see if it is worth the investment. The same goes for an e-commerce website.

Why should I invest in an online store?

What are the advantages of an online store?

How much will it cost to set up an online store?

How will I manage my online store?

Many of the businesses have questions ranging from the initial need to the final e-commerce website support.  

Here, we will try to answer your questions and tell you why an online store is a must in 2021 if you are to make profits in your business.

 

Why should I invest in an online store?

Let us present to you some statistics on online stores.

These statistics speak volumes about the success and future of online shopping. It is here to grow and there is no stopping it.

 

What are the benefits of an online store?

The benefits of having an e-commerce website are immense if harnessed in the right way.

Easy website management-

If you are a small business, use a CMS e-commerce website for easy uploading of products and content change. Any new offers or new product launches can be easily handled with less technical knowledge.

 

Brand reach-

Undoubtedly, an e-commerce website helps businesses to reach more people globally. An e-commerce website acts as good support to your traditional marketing techniques.

 

Local awareness-

An online store is also about helping local customers know about you. This way, you make your position strong in the local market. Listing your business and website on Google My Business helps the locals find out more about your online store and its products.  

 

Product promotions-

People buy products almost immediately when there is a sale. So promotions in the form of discounts and offers attract people to make that online purchase. Spreading your offers all through the year also helps. If you own an online store that sells shoes, you can opt for a kid’s sneakers sale during the start of their vacations, sandals for summer, all-weather shoes for monsoon, party shoes during Christmas & New Year and so on.      

 

Showcase the best-

Trending products, bestsellers, discounts- all these help you to showcase the best on the front page to your customers. This way you guide your customers to purchase the best. Also tactics like only 1 left in stock or free shipping if you buy before 2 hours help in impulsive buying.  

 

Personalized shopping-

With an online store, giving a personalized shopping experience to customers becomes easy. Amazon starts its prime day sale one day before for its prime customers. Also, they provide free shipping of many products to them. All this makes the customer feel like a king. This increases brand loyalty and sales.  

 

Educate customers about products-

An e-commerce website helps you to educate your customers about products and offers and how it is beneficial for them. The product page helps you to give its details in a beneficial way through written content and appealing images.  

 

Support to physical shop-

An e-commerce website supports your physical store. It builds credibility for your business. People are more likely to visit a shop that already has an online presence. Also, many of them prefer to go through the products in your online store before visiting the physical store to make the final purchase.

 

Target marketing-

With an online store, you can select your target audience and location. Do you want to sell products only to people aged above 40 in the US? Yes, an online promotion to send this particular category to your e-commerce website is possible. You can categorize products and guide your customers easily so that their search becomes easy.  

 

Minimum costs-

One of the biggest advantages of setting up an online store is reducing the dependency of having a physical shop. It means fewer costs and easy management. You reduce having to be dependent on employees for sales. Product uploads can be outsourced. Online promotions can be assigned to a digital marketing agency remotely.

 

Easy customer interaction-

Live chat helps you to connect with customers instantly and resolve their queries regarding products, prices or shipping policies. This way you offer a more personalized service to your customer.

 

More customer data-

An e-commerce website gives a lot of insights into customer behavior and preferences. You can find out the products that sell the most, the most visited page, if a particular offer has worked, the age group of customers visiting your online store, the days & timings when it is visited the least or most and so on. This helps you to align your marketing strategies based on the insights.

 

Always open-

Your online store remains accessible to your customers all days and at all times meaning your online shop is never closed. This helps you to connect to people across different locations and time zones.

 

Remote store management-

As much as customers from any corner of the world can visit your e-commerce site, you can also manage your online store from anywhere at any time. All you need is a mobile and a good internet connection.

 

Customer retargeting-

Has your customer added products to the cart but abandoned them without buying? Has your customer wishlisted any product? Has your customer added a product to the cart and then removed it? You can create customer retargeting ads to target such customers to land on that specific product page so that they change their minds and make the purchase. This customer retargeting will not be possible through a physical store.

 

Contained shopping-

With an online store, your customer gets the privacy to shop and make the purchase at leisure without the salesman trying to impose shopping on them. The live chat helps such customers to resolve their issues. This non-invasive form of shopping helps customers to have a more relaxed shopping experience.

 

Scaling the business-

With an online store, scaling your business is easy. You just add new products to the categories that are getting higher visitors and increase your sales. You can also increase sales of new products on your online store through ads by making that page the landing page.

 

More profits-

The important benefit of having an online store is the insane amount of profit that you can make. But, having an online store is not an overnight success. It takes years of consistent efforts and hard work to make your store visible to customers worldwide.

 

What is the cost of setting up an online store?

The price of setting up an online store is cheap. It is cheap when compared to the profits you get or the cost of setting up a physical store.

 

But first, consider these points-

  • What will you be selling in your online store?
  • Do you have an existing physical store to integrate your online store sales?
  • What is your budget for e-commerce development?
  • What shipping options will you provide for your online customers?

 

Once done, let us consider some factors that will decide the overall budget.

  1. Server, domain, SSL certification costs
  2. Theme and plugin costs
  3. E-commerce development service costs

 

The server, domain and SSL costs are recurring costs. So, it is wise to go in for a basic domain and shared server. If you have many products to sell or are eyeing to scale your website in the future, it is better to go with a private server.

The themes and plugin costs can be minimized by going for basic e-commerce templates.

The e-commerce development service costs depend on whether you prefer to have your online store through e-commerce platforms like Shopify or WooCommerce or you want to have it designed and developed from scratch. The benefit of developing it from scratch is that it allows you to customize your website and also make it future scalable. If this cost is something that suits your budget, go for it.  

Another recommended option will be to select Shopify or WooCommerce and have it customized by any best e-commerce development company. They help you to select the theme and plugins and customize it based on your requirements and budget.

The features that you need in your e-commerce website solely decide the online store development cost. While basic features remain the same, what adds to the cost are the add-on services. But it is the add-on services that will make your online store unique and better than your competitors. Decide if the add-on features are adding value to your customers. If yes, go for it. It will be worth the investment.

And yes, while selecting an e-commerce website development agency go for the one that provides good services and customer support.

  

Can I manage my online store?

Managing an online store is very easy. The initial product uploading will give you a good idea about how it is done. You can also hire a good product uploader to do the job for you. A CMS-based e-commerce website is easy and you can make changes in the content and also upload new banners on your own. A good e-commerce website development agency will help you with customer support when you need it to upload the products.  

Having an e-commerce website is beneficial when you study the growing trend of people preferring to make an online purchase. Also, it has low costs of setting up and once the initial cost is recovered, it is profits all the way!

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Blog date 01-01-2021
Category : Ecommerce

Shopify Vs WooCommerce? Who Is The Winner?

It is the big good world of e-commerce. Online stores have gained tremendous growth over the decade and this goes on to prove that it definitely benefits the businesses.

Shopify and WooCommerce are two popular e-commerce platforms among the many that help individuals and businesses to set up their online store and start selling their products/services.

Both Shopify and WooCommerce (e-commerce website using WordPress) have a host of features that are a delight to anyone wanting to set up their online store. Both have their strong benefits and both have some disadvantages.

So, what really is the difference between Shopify and WooCommerce? In Shopify versus WooCommerce, which emerges as the winner? For this, let us get into the individual platforms and study them.

 

WooCommerce

Popularly known as the WordPress e-commerce website, WooCommerce is basically an open-source e-commerce plugin solution built on the WordPress CMS (content management system).

 

WooCommerce subscription:

WooCommerce is free and charges only for the domain and hosting. But integrating third-party applications for a comprehensive WooCommerce e-commerce website needs that you need to shell out extra.

 

WooCommerce Themes/templates:

Free WooCommerce themes are available in plenty in the theme directory. But you can also purchase themes from external sources and integrate them into your WooCommerce website. Since WooCommerce is an open-source structure, you can customize the themes to create a unique website design.

 

WooCommerce Interface:

For people who are already familiar with WordPress, the WooCommerce interface will be easy to use. The primary functions are placed on the left menu bar and clicking on them displays the tabs on the right.

 

WooCommerce POS:

WooCommerce doesn’t have any built-in POS feature. You have to use third-party plugins for WooCommerce POS. You can select the one that fits your criteria and budget from the WordPress directory or external source.

 

WooCommerce Product Data Integration:

The product XML or CSV file can be easily migrated to the WooCommerce website using any external export-import tool or third-party plugins.

 

WooCommerce SEO:

Since it is basically an e-commerce website using WordPress, it offers excellent SEO support when compared to other e-commerce website builders.

 

WooCommerce Dropshipping:

WooCommerce does not have a default dropshipping feature. But it offers dropshipping plugins that help you find dropshipping suppliers and add products directly to your store. 

 

WooCommerce Customer Support:

Apart from extensive documentation, a help desk is available for support in WooCommerce.

 

 WooCommerce Benefits:

  • The most obvious benefit of the WooCommerce website is its affordability.
  • Since WooCommerce is e-commerce on WordPress, it is clear that it has great built-in blogging features.
  • Also, it has the plugin support to integrate Google Analytics.
  • It has a great online support community to get ideas or solve technical issues.

 

WooCommerce Disadvantages:  

  • WooCommerce is only ideal for small and medium stores with a limited budget.
  • It does not contain legal texts such as terms and conditions or shipping regulations.
  • Installation of extensions & plugins may require that the user be punctual with payments and also updates. 
  • User needs to have knowledge of both WordPress & WooCommerce for efficient management.

 

 

Shopify

Shopify is one of the most trusted hosted e-commerce solutions. It runs on its own server and customers are charged a subscription fee. Enough email marketing tools are provided to complete your store setup. The store can be customized by coding to meet other individual requirements.

 

Shopify subscription:

Shopify has 5 available plans on a monthly subscription model. They are:

  1. Shopify Lite- USD 9/month
  2. Basic Shopify- USD 29/month
  3. Shopify- USD 79/month
  4. Advanced Shopify- USD 299/month
  5. Shopify Plus- Customizable

Note: A free trial is available for 14 days.

 

Shopify Themes/Templates-

Shopify provides enough themes that come in two or more template variations. They are minimalistic, clean and responsive. But the themes on offer are less when compared to other online e-commerce website builders.

 

Shopify Interface:

The Shopify interface or the admin (user) panel is easy and hassle-free. It has clear segregation of content (topics) and the customizable area. It does not use the ‘drag and drop’ approach that may seem intimidating at first.

 

Shopify POS (point-of-sales):

With Shopify POS, you can sync your online and physical store inventory and sales. The Shopify POS provides you with relevant hardware too. Shopify POS Lite offers the basic features but you will have to purchase Shopify POS Pro ($89/month) if you want additional features like multiple location sales, custom-printed receipts and so on.      

 

Shopify Product Data Integration:

With Shopify, it is easy to integrate the product data from your CSV file to Shopify or to migrate it from another e-commerce store.

 

Shopify SEO:

It offers easy adding of headings, alt text, meta description and 301 redirects.

 

Shopify Dropshipping:

There are a lot of dropshipping apps in Shopify that allows you to sell the supplier goods easily. 

 

Shopify Customer Support:

Shopify provides phone support when you request a callback. But the forums are a great way to get your queries solved.

 

Shopify Benefits:

  • Easy product data integration
  • Easy categorization of the product range
  • Good flexibility in shipping options
  • Offers abandoned cart recovery included in all Shopify plans.
  • Shopify allows customers to apply tax rates automatically for some areas like the US, Canada and the EU.
  • Shopify offers a simple blogging version with no SEO or categories.  
  • It has an in-built email marketing tool from which you can send emails to 2,500 subscribers for free.

 

Shopify Disadvantages:

  • Most of its themes do not support multiple currency payment options.
  • You have to pay transaction fees if you use a third-party payment gateway.
  • It doesn’t crop product images. So, you have to maintain the same aspect ratio for all images.
  • Shopify offers a range of reports like sales reports, finance reports, marketing reports etc but this option is not available for the basic versions.
  • Transaction fee from the sale is not refunded if the customer cancels the order, returns it or the merchant cancels it for being fraudulent.
  • It doesn’t allow grouping of multiple discounts on the same order.
  • Add-ons on Shopify are very expensive.
  • Their shipping features are not comprehensive.
  • It doesn’t offer a GDPR-complaint cookie solution.

 

Which is better, WooCommerce or Shopify?

WooCommerce is best if you are a startup with a low budget. But remember, some technical experience is required to build an e-commerce website through WooCommerce. If you can afford the subscription plan of Shopify, go for it. It is easy to use, secure, scalable and gives you a better experience. 

If you are experienced in the technical and SEO aspects, go with WooCommerce because its features can be enhanced with plugins.

If you are interested in an online store, Daddys Code will build it for you at the most affordable rates. If you want your online store through Shopify or WooCommerce, we will help you with an affordable service fee. Let us know of your online store requirement and we will suggest the best based on your business, products, budget and timeline.

 

 

 

 

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Blog date 30-10-2020
Category : Digital Marketing

Have You Tried The Chatbot For WhatsApp Business?

Increased customer satisfaction is sacrosanct when it comes to any type of business. A WhatsApp business account integrated with a chatbot helps businesses to connect with their customers promptly and regularly thus being able to achieve higher levels of customer engagement and increased conversions.

Before we jump into the WhatsApp chatbot, let us know about chatbot and its benefits.    

 

What is a chatbot?

A chatbot is basically an AI simulated computer program that is designed to interpret and process the user requests and give prompt and most-relevant answers. It can be programmed to give a voice message as well as a text message.

 

How does a chatbot work?

A chatbot first analyzes and identifies the intent of the user request.

To classify the user request and to send an appropriate response, it adopts three methods. This is where AI comes into play.

1. Pattern Matching

The texts are grouped and matched to pre-existing patterns through AI Markup language. When a match is found, the answer to that related pattern is sent across.

2. Natural language understanding (NLU)

The user request text is converted into structured data. The NLU algorithm follows the entity, context and expectation concepts to find an appropriate match to the user query.

3. Natural Language Processing (NLP)

The NLP first converts the text input into structured data. A set of relevant words is converted into a token. The user emotions are processed (voice). The typo errors are checked before looking for the categories of information required by the user. The bot matches the tokens with the common phrases and picks the answer when it finds the near-relevant match.

During the conversation, the user will have to pick options from the text passed across to them. This is a guided conversation and the user’s next step will determine the response. The bots that follow a predetermined rule or a structure are the rule-based chatbots. These bots can be programmed to answer queries related to delivery status, transactions, business hours and services.

The conversational chatbots or the virtual assistants use the power of predictive intelligence and sentiment analysis to understand the context of user queries and provide more personalized conversations. They mimic the human voice and help businesses deliver a customized experience.

 

Benefits of chatbots for your business

1. Prompt reply

In any business, it is not possible to be available to the customer 24*7 and reply to their messages instantly. But with chatbots, you can automate responses and get it delivered to the customers instantly. Also, you can be available to them 24*7.

2. Conversation starters

Bots can keep the customers engaged initially. This way you can offer recommendations and general information about your services and offers.

3. Manage customers

Businesses can manage customers during peak days or hours by automated responses without spending extra on additional manpower.

4. Directing leads

Through chatbots, you can direct the leads from customers to the relevant team for further engagement. For example in a real estate business, chatbots can identify the user queries for different projects and direct the users to respective project teams.

5. Increased conversions

By constant and instant customer engagement, chatbots help to decrease bounce rates and increase conversions.

 

Chatbots for WhatsApp Business

WhatsApp Business API can be integrated with third-party tools to provide you with a WhatsApp Chatbot. Many third-party tools offer free services while some charge a monthly or annual subscription. WhatsApp provides insights to analyze the delivery of messages and user engagement.

 

Benefits of WhatsApp Business Chatbot

  1. The customer query can be answered 24*7.
  2. The business owner can route the customer queries to different teams to handle the conversations by integrating with a CRM. Also, they can identify repeat customers and get their interaction history. This helps them to categorize the customers as priority or regular customers.
  3. WhatsApp business chatbots can be used to send instant confirmation, alerts or reminders to customers.

 

The best third-party chatbot integration for WhatsApp business

  1. Messenger People

Specially designed for medium and big enterprises, Messenger People offers end-to-end encryption and GDPR compliance in its message communication. It is easy to create chat texts here without knowing the basics of coding. This acts as a centralized customer message management platform for many other social media channels like Telegram, Facebook Messenger, Apple Business Chat, Viber including WhatsApp.

Benefits of Messenger People-

  • Save relevant information of certain user chats
  • Assign tickets through auto-route function to the right agents
  • Create preset answers easily
  • One platform for all messaging apps

 

  1. Drift

Drift offers free and premium chatbot services. Very beneficial for small and big enterprises alike, it has a host of features that will help you to engage customers and even book a meeting with them.

Benefits of Drift-

  • With Drift, you can automatically book meetings with your clients.
  • You can even get notification alerts on it.
  • The leads can be automatically routed to your enterprise marketing software.
  • It offers the flexibility to create multiple inboxes to manage different types of customer conversations.
  • The team members can communicate internally with each other within the conversation and this will not be visible to the user.
  • Insights are made available to help you improve your sales.  

 

  1. AIAgentBot

Like other chatbots, the AI Agent Bot also helps integrate AI-chatbots to your WhatsApp business account. It offers superior AI analysis to help you send personalized messages to user queries.

Benefits of AIAgentBot-

  • It offers security through message encryption
  • You can integrate this chatbot with your enterprise systems.
  • You can track and monitor messages exchanged by users and chatbots.
  • It gives omnichannel integration so that your chatbot can be simultaneously hosted on other social media channels too.

 

Conclusion

It is now easy to integrate chatbot with Whatsapp. Chatbots are essential for every business be it real estate, transportation, local services, or the hospitality sector. It will help enterprises boost their sales and engage the customers in meaningful conversations that can lead to conversions. Properly channel the possible user queries and your automated response will work wonders in converting leads into sales.

If your business needs WhatsApp chatbot integration, get in touch with us. We will help you integrate the best chatbot tool with your WhatsApp business account so that you can keep your customers queries resolved at all times.   

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Blog date 28-10-2020
Category : Ecommerce

10 Celebrity Cricketers Who Have Invested in Tech Startups

How can we leave behind the cricketers when it comes to celebrities who invest in startups? Here is the list of famous cricketers who have invested in tech startups or turned entrepreneurs themselves.

Just in news is the Indian cricket team current captain, Virat Kohli who has just invested in Sportsbiz, a sports tech company that helps brands find the right sports sponsorship and marketing.

List Of Celebrity Cricketers Who Have Invested In Tech Startups- 

  1. Kapil Dev

Kapil Dev, the famous former Indian cricket captain, has invested in Mumbai-based Samco Ventures. He has also invested in a cab aggregator VAOO that offers free rides to passengers when they view advertisements. Recently, he has invested in a power sector-focused startup Harmonizer India that delivers AI, ML and IoT-based energy-efficient solutions.

 

  1. Virat Kohli

Virat Kohli, the current Indian cricket captain co-owns the brand Wrogn that sells fashion clothing merchandise.

More recently, he has invested in a sports & entertainment-related agency SportsBiz.

Virat Kohli, along with his actress wife Anushka Sharma has invested in a Bengaluru-based technology-backed insurance startup, Digit Insurance.  

He has also invested in Chisel, a fitness startup that has a chain of gyms and fitness centers.

Virat has partnered with Hong-Kong consumer electronics company Zeeva to launch MuveAcoustics, the audio equipment company in India.   

Virat Kohli has invested in a London-based startup Sport Convo. This app connects the sports stars with their fans through social media.

 

  1. Yuvraj Singh

YouWeCan Ventures, the brainchild of Yuvraj Singh, a famous cricketer, had invested in health and wellness startup Vyomo, rebranded as Naturals@Home (now defunct).

He has also invested in EazyDiner, an online table reservation platform. Other than this, he has also invested in healthcare marketplace Healthians, automotive services marketplace startup Cartisan, online marketplace for private jets and helicopters JetSetGo, a tech-based booking platform for mini-trucks Moovo (now shut down) and many other startup incubators.

 

  1. M S Dhoni

The former Indian cricket team captain, M S Dhoni has invested in the business ledger app KhataBook. He has also invested in online used car marketplace Cars24. Apart from these, he has invested in Run Adam, an analytics-based platform that connects sports rookies with resources like coaches and sponsors.

 

  1. Sunil Gavaskar

Sunil Gavaskar, a cricket veteran has invested in Mumbai-based board games startup Binca Games.

 

  1. Sachin Tendulkar

Sachin Tendulkar, one of the Indian celebrity investors, has invested in Indian Tennis League, Indian Super League and in the hotel business. He also has a significant investment in Sportsbiz, a company that utilizes the power of AI and advanced analytics to help brands increase their sports marketing and investment for sponsorships. The God of Indian cricket, he has invested in an Internet-of-Things (IoT) company Smarton India. He has also launched a premium menswear brand True Blue in partnership with Arvind Fashion Brands Ltd.

 

  1. Sourav Ganguly

Former Indian cricketer and the present BCCI President, Sourav Ganguly, has invested in Flickstree, an app that helps people to view films on the go.

 

  1. Shikhar Dhawan

Shikhar Dhawan has invested in Sarva, a yoga studio chain.

 

  1. Anil Kumble

A former bowler in the Indian cricket team, Anil Kumble has launched his startup called Spektacom Technologies that helps to integrate innovation in cricket using advanced technologies.

 

  1. Robin Uthappa

Indian cricketer, Robin Uthappa has invested in HealthEminds, a Bengaluru-based healthcare startup. He had also invested in iTiffin, an online tiffin service enterprise (now shut down). 

Also, Harsha Bhogle, a famous cricket commentator, has invested in Chqbook, a Gurugram-based finance marketplace. It uses ML algorithms to match customer requirements and find the right lender.  

 

Conclusion

E-commerce is a promising sector and if well managed can give you lucrative returns. If you have a niche product or service to sell, come to us. We will design an ecommerce website and mobile app for you to ensure that your sales increase. 

We design user-friendly and responsive websites that will help viewers with easy product search and payment. We are the best ecommerce web development company and we specialize in website and mobile app design and development.  

 

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Blog date 28-10-2020
Category : Products

2020 List Of Top 5 MLM Companies In The World

When one wants to expand a business through an MLM plan or when one wants to join a leading MLM company for extra income, one would need information on the latest top MLM companies in the world. This will give them information about what makes these MLM companies successful and what are their compensation plans.

MLM (multi-level-marketing) plans are best when one wants to augment their income or improve their savings. Also, a business can reach greater levels of success if it follows any MLM model. An MLM plan in business ensures that your product reaches new people in a cost-effective way. A company will increase its product sales if it has a well-thought MLM plan that has a good compensation plan to pay to its distributors.

 

Let us see the top 5 MLM companies in the world-

1. Amway Corporation

Sales: US $ 8.4 billion in 2019

Amway Corporation, a Michigan-based MLM company became a household name in the US by selling a vast product line including home and personal care products, dietary supplements, and electronics. Its distributors are paid commissions on the sale of products and also on recruiting new members to its direct-selling model.

Amway was established in the year 1959 by Jay Van Andel and Richard DeVos as American Way Association (Amway). Its first product was a concentrated liquid organic cleaner. Since then, it has established its presence in over 100 countries.

The Amway products are not available in stores. They have to be purchased from distributors. Amway has earned a name for itself because of the quality of its products and its presence worldwide. 52% of its total sales were in nutrition and wellness products and 26% in beauty and personal care products.

   

2. Market America

Sales: US $ 8.3 billion in 2020

Market America was founded in 1992 by James Howard Ridinger and his wife Loren Ridinger. James is a former Amway distributor. At present, Market America is headquartered in Greensboro, North Carolina. Its products include household cleaning products, dietary supplements, water purifiers, jewelry, personal care products, financial management and custom websites.

Market America sells many products like auto care, electronics, water filtration systems and oral hygiene through affiliations with other outside companies that advertise and sell these products. The independent distributors are addressed as ‘UnFranchise Business Owners’ and they can also operate their online retail website. The distributors earn money through the sale of products and by bringing in new recruits.    

 

3. Avon Products

Sales: US $ 5.57 billion in 2019

Avon Products was founded in 1885 by David. H. McConnell and is based in London, United Kingdom. Its main products are cosmetics, clothing and perfume. Initially started in New York, it first sold only perfumes and was registered as California Perfume Company.

Avon sells products in more than 100 countries. It shifted its headquarters to London in 2016. In 2019, Brazilian beauty company Natura purchased a 76% stake in Avon Products making it the world’s fourth-largest beauty company.

Avon Products operates training centers in some cities and they have a small retail section in which they sell skincare products. The main chunk of their profits comes from multi-level marketing in which they recruit Avon ladies and Avon men to do the direct selling of products.

There is ambiguity regarding Market America or Avon Products being the second largest direct-selling company worldwide.   

Avon Products has already closed shops in France, Australia and New Zealand. Its sale is continuously dipping since 2014 and now it remains to be seen if the acquisition by Natura will infuse life to it.     

 

4. Herbalife Nutrition

Sales: US 4.89 billion as in 2018

Mark. R. Hughes is the founder of Herbalife Nutrition that has its headquarters in California, U.S.A. This multi-level marketing company sells weight management products, dietary supplements, personal care products and sports nutrition. It operates in 100 countries and has a network of independent distributors of about 4.5 million.

Herbalife’s first product was a protein shake, a weight management product. This Formula 1 protein shake is a soy-based meal replacement and even now remains the company’s best-selling product. In the USA, a member can join Herbalife as a member and get a discount on its products or join as a distributor to earn extra income. The members cannot sell products or are not eligible for rewards.

 

5. Nu Skin Enterprises

Sales: US $ 2.68 billion as in 2018

Nu Skin Enterprises is an American multi-level marketing company founded in 1984. It sells personal care products and dietary supplements. Its products are sold in more than 50 countries and it has about 1.2 million independent distributors.

It sells personal care products under its Nu Skin brand and dietary supplements under the Pharmanex brand. It also sells antiaging products under the ageLOC brand. It has its head office at Provo, Utah in the United States.  

The other top MLM companies in the world are Infinitus, Vorwerk, Natura, Coway, Tupperware, Oriflame Cosmetics and Young Living.

 

Conclusion

An MLM company succeeds when it has effective management of resources. An automated MLM software/website/app will help in organizing the downline and the payouts. MLM websites and apps help distributors in easy management of their sales and incomes. It also helps for easy communication between the distributors and their team leaders.

If you have any requirement for MLM software/website/app, you can count on us. We have the best website developer and designer who will design websites and apps that will help you in easy management of your MLM business.  

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Blog date 26-10-2020
Category : Products

Are You Interested To Know The Types of MLM Plans?

The best way to grow your business and increase its brand awareness is to sell it through multi-level marketing (MLM) plan. Also called direct selling or network marketing, this type of plan succeeds when the members have a strong network and use it to join new members in the plan. This way, the products/services get sold and you reach a wide customer base. This MLM plan works when you offer attractive incentives and profits to the members.

Each MLM plan is structured depending on what a business wants to achieve and the product/service that it wants to sell. An MLM has many types. A business may want to achieve more customers, more product sales, target a specific location or group and so on. Based on this, the MLM type is decided.    

The reason why MLM business is popular is that it offers a chance of income from top to the bottom of the tree. IN any MLM plan, you join as a distributor under someone. You start to enroll people under you. When the people under you make any sale, a small part of the profit gets distributed among the upline members. If the right people join under you, you are guaranteed a good income from your downline. The people under you also ensure the same and hence everyone is benefitted by it.

 

Types of MLM Plans:

There are main 3 types of MLM plans-

      1.  Binary MLM plan

The Binary MLM plan follows a tree-structure with two legs, usually termed as the right leg and the left leg. Only 2 people can be recruited directly under a distributor and the remaining goes under the downline. Usually, the two legs in the Binary MLM plan is known as the power leg and profit leg. New recruits are added in the power leg and the tree keeps growing. A new recruit is added to the profit leg to complete the binary structure. The profit compensation is distributed among the upline members.  

 

2.  Uni-level MLM plan

This is the simplest MLM plan and allows distributors to add unlimited recruits directly below them. The distributor can keep adding newcomers and increase the width of his tree. The commission is distributed up to a fixed depth as previously decided. The process continues and schemes are made attractive by bonuses and incentives after reaching a specific level of frontline depth. This is most preferred for new MLMs as the concept is easy to explain for newcomers.

 

3.  Matrix MLM plan

Also known as the forced matrix plan or the ladder plan, this MLM structure has a fixed width and depth as pre-decided by the company. Since the width is limited, the distributor has to drive more sales from his downline to enable profits. To qualify for the position and the forced matrix bonus in the Matrix MLM plan, the member’s downline team will have to complete their matrix and fill in all the required free positions. This type of plan is usually preferred by businesses that need people to purchase its products only once like RO filter, power bank and so on. Here a repeat purchase is generally not done by the members.

The rest of the MLM plans are derived from these 3 MLM types. A company can select the type of MLM that best suits their product and the business target they want to achieve.

 

4.  Tri-Binary MLM Plan

This plan uses 3 child members under a single parent. Similar to the binary plan, a third leg is added usually to the left side here for sales support. During the time of payouts, 3 IDs are required for matching.

 

5.  Australian Binary MLM Plan

This plan is very popular now and is preferred by most of the newly formed MLM companies. It is very similar to the tri-binary plan, but the only difference is that binary matching is not essential to complete the tree. It is also called the X-Up Plan or Step-Up Plan.

 

6.  Straight-Line MLM Plan

This MLM plan grows in depth with recruits added one under the other. Also known as a monoline or linear compensation plan, here the distributor at the top of the hierarchy profits from every new user added downline.

 

7. Board MLM Plan

Also known as the revolving matrix plan or the recycled matrix MLM plan, this constitutes a board with a member limit set by the company. The role of the member is to recruit other members in the downline. When the matrix is complete, the board is divided and the member now has to recruit new members to complete the new board matrix. He gets a commission for the completed board and has to pay to join the new matrix. 

 

8.  Gift MLM Plan

Also named as the Crowdfunding MLM, Donation Plan, Money Order/Cash Order Plan or the Help/Helping Plan, this is a give and take plan. A distributor receives help from his network/downline in the form of donations when needed. Or a distributor sends a gift directly to one member and receives gifts from many other members. So, some of the members receive multiple gift receipts from others. This is beneficial for people who lack financial resources for maybe initial startup, business diversification or some other purpose. In turn, when other distributors need money, all other distributors have to pool the money so that they help him. The Gift MLM plan is considered illegal in some countries. 

 

9.  Mobile Recharge/ DTH Recharge MLM Plan

In this plan, members recharge other people’s SIMs and DTHs. The bonus or incentive is received when a set number of transactions are completed. You also add new recruits to increase the network.

 

10.  Generation MLM Plan

One of the popular MLM plans, the generation plan is also referred to as the repurchase plan or the gap commission plan. This involves the generation structure or the levels and members earn a certain income either on level completion or rank achievement. The level completion bonus is when a certain level in the tree structure is completed. The rank bonus is based on your performance and is mainly associated with how active your downline team is. The FMCG products generally follow the Generation MLM plan.

 

11.  Party MLM Plan

In a party MLM plan, the products/services are marketed through the arrangement of gatherings, parties, and social events. The host conducts the party inviting his family and friends and pitches the products to them.

 

12.  Hybrid MLM Plan

The Hybrid MLM plan is a combination of two or more plans adapted to suit the business strategy and growth. Usually, the uni-level and binary MLM plans are combined to extract the strengths of both the plans.

 

13.  Stair Step MLM Plan

This MLM plan also called the Stair Step Breakaway Compensation MLM Plan is based on a pre-decided volume of sales target that forms a step. When the distributor, with the downline team, completes the target/step, he is promoted to the next step or the higher level. The compensation is paid when the set target is complete. In this MLM plan, all strive for higher sales and better profits. While you move higher in the network, you better your income. Finally, those who earn higher or reach a threshold, breakaway and form part of another group within the MLM that aims for much higher income.

 

Conclusion

An MLM works well for businesses that lag behind in networking resources. MLM helps them to broaden their network and join new customers with the help of others. It also augments the income of its members.

An MLM works best when you manage the MLM tree structure and the payouts efficiently. The MLM software including the website and the app helps businesses to manage their MLM effectively. It fastens the calculations and helps in payout and member management.

If you are interested in MLM software, select the best MLM software development company near you that will design the software/website/app as per your MLM business requirement. After all, good MLM software will help you manage and increase your profits.   

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