For entrepreneurs low on budget and resources, MLM (multi-level marketing) is often the optimum business strategy. It enables you to connect to your customers directly, setting aside the supply chain, and to distribute the enhanced profits among the distributors and yourself. When done efficiently, MLM can grow rapidly and spread globally like a pyramid.
The only major drawback in MLM is the mistrust that may sometimes develop between the promoters and the distributors. The promoters may not be very sure of the capabilities or integrity of a distributor who has recently joined the network. Some promoters also doubt if they will be paid when getting new distributors to join the network.
Thanks to blockchain technology, there is a solution to eliminate all the mistrust, automate the MLM processes, and take your business fast forward.
The solution is – smart contract based MLM software.
A smart contract is a self-executing agreement between the parties involved. Clauses these parties have agreed on are written in computer code, making up an algorithm. This agreement lies in a distributed, decentralized blockchain network. The algorithm triggers and controls the executions. Transactions executed by the contracts are trackable and irreversible.
What makes a smart contract score heavily on a conventional contract is the automated transaction, once the conditions mentioned in the agreement are met. Once a smart contract has been created, it is immutable. Not even the creators of the smart contract can change a bit of it.
The best smart contract based MLM software enables you to take your business ahead in good faith.
Smart contracts are generally built on Ethereum blockchain which decentralizes the code, making it fair to all the parties. The term decentralizes means the contracts are not controlled by a single entity like a government or a bank.
The blockchain itself is a shared database running collectively by several computers called nodes, working collectively as supercomputers. The structure makes blockchain near impossible to hack. This is the reason one can feel completely safe when depositing for products or services operating on a blockchain-based mechanism.
Opting for an MLM business structured on a smart contract, this is what you get:
Safety – All components of the smart contract are encrypted, rendering utmost safety. It is foolproof and even the smartest hacker won’t be able to get through.
Speed – Manually processing the documents will take plenty of time. Smart contracts use software for automation, helping you save valuable resources.
Savings – Removing the intermediaries from the picture, smart contracts enable you to save money. A smart contract doesn’t require a third party to execute the transactions.
Accuracy – Automated contracts are faster, in-budget, and most important, accurate. It also saves you from errors that occur in the manual filing of a huge amount of data.
Autonomy – You can make the agreement on your own with no role of a lawyer, broker, or any other intermediary. Automated management by the network also does away with the risk of manipulation by a third party.
Trust – All documents are encrypted on a shared ledger which is immutable. No one can claim that they lost the document.
Backup – On a blockchain, there is absolutely no chance of someone interfering with the clauses in the contract. Each distributor has duplicated copies of the agreement.
Investing in the best smart contract based MLM platform assures you of a specific set of outcomes sans confusion that may lead to unnecessary litigation, causing you unnecessary hassles. This is where businesses are able to take advantage of the technology to the maximum. Autonomous execution capacities of smart contracts are well beyond the transactional security mechanism of blockchain, perfect for situations requiring complex transitions.
If you are planning to launch a smart contract based platform, Antier can help. We provide a white label smart contract based MLM solution to accelerate the deployment.
Connect with our subject matter experts to schedule a free demo of our smart contract based MLM solution or to share your requirements.