1. The Field of the Invention
The present invention generally relates to computers configured to implement systems and compensation plans with multi-line structures and computers for optimizing commissions and for enabling substantially infinite variability in width and breadth of the genealogical structure of the compensation plans.
2. The Relevant Technology
Known compensation plans for multi-level marketing (MLM) companies include unilevel plans, matrix plans and binary plans.
In unilevel plans, a primary distributor has a single frontline of sponsored distributors that are directly beneath the primary distributor in their distribution tree. There can be an unlimited number of frontline distributors in this type of plan. The primary distributor will earn commissions off of each frontline distributor and that distributors' downline, i.e. distributors beneath a frontline distributor, but limited to a predetermined depth. Accordingly, unilevel plans are characterized as providing commissions for distribution trees of essentially infinite width, but only finite depth.
Binary plans are almost the exact opposite of unilevel plans. In binary plans, a primary distributor is only allowed a limited number of frontline distributors, but the primary distributor will receive commissions for the entire downline of each frontline distributor and the downline depth is not limited. Accordingly, binary plans are characterized as providing commissions for distribution trees of finite width, but essentially infinite depth.
Matrix plans include some aspects of unilevel plans and binary plans, namely a finite width and a finite depth. Matrix plans have a limited number of distributors who can be placed on each distributor's downline and there is a limited depth for each downline that the distributor will earn commissions off of.
There is currently a need for improved compensation plans, and automated systems to improve compensation plan structures, that are not limited by the width or the depth of the distribution tree for which a distributor is compensated.
Embodiments may include computers for enabling a distributor to build a distribution tree of essentially any width or depth and to receive commissions for the entire width and depth of the distribution tree.
Embodiments may include computers with functionality for building and using a multi-line compensation distribution plan that is unlimited in width and unlimited in depth, as well as embodiments for compensating distributors of the compensation distribution plan. In some embodiments, building the multi-line compensation distribution plan includes transitioning a distributor's existing compensation plan that is limited in width, depth or width and depth to a new distribution plan that is unlimited in width and depth. For instance, in some embodiments, an existing binary plan, unilevel plan or matrix plan is mapped into or converted into a new distribution plan (unconstrained by width or depth) that enables the primary distributor to continue to develop the distribution tree in width and/or depth and to receive commissions for downlines that would not be available under the previous binary, unilevel or matrix plan from which the new compensation plan is developed. The new multi-line compensation/distribution plan provides for an unlimited potential number of pay lines (downlines) per income position.
In some embodiments, computers can cause a distributor to re-enter the distribution tree, within one or more downlines, thereby providing new income positions for the same distributor within a single distribution tree.
Embodiments of the invention may include computer systems that auto-balance volume that is generated from the downlines, such that the volume is placed where it would generate the greatest amount of commissions or credits for a sponsoring distributorship.
These and other features of various embodiments of the present invention will become more fully apparent from the following description and appended claims, or may be learned by the practice of the invention as set forth hereinafter.
In order to describe the manner in which the above-recited and other advantages and features can be obtained, a more particular description of various embodiments will be rendered by reference to the appended drawings. Understanding that these drawings depict only sample embodiments and are not therefore to be considered to be limiting of the scope of the invention, the embodiments will be described and explained with additional specificity and detail through the use of the accompanying drawings in which:
Various embodiments of the invention will now be described. In describing these embodiments, various terms will be used. To assist in understanding the described embodiments, some of those terms will now be defined. The following terms are used with respect to a particular compensation scheme of one embodiment, but the terms may be applied differently in different compensation schemes.
The term “Auto-Balance” generally relates to the use of a unique algorithm and system for placing sales volume in a manner that will generate the most amount of commissions possible to an individual.
The term “Bonus” generally refers to additional commissions paid to individuals. This can be done for achieving higher levels of sales volumes on a line or by achieving higher numbers of lines, or for other appropriate reasons.
The term “Bucket” generally refers to points that are accumulated from the purchases of customers and additional orders of individuals that are available for auto-balancing.
The term “Cycle” generally refers to a given time period. For example, a cycle may be a period of 4 weeks (28 days). Although other cycles can also be used.
The term “Income Position” or “(IP)” generally refers to the location on a genealogical path in a distribution tree.
The term “Optimization” generally refers to earning the maximum amount of commissions on any single pay line.
The term “Payline” or “(PL)” generally refers to the second, third, or more lines in a downline that generate volume and subsequent commissions for individuals. As noted below, the first line is the powerline. The powerline, in the illustrated example, does not generate commissions for individuals.
The term “Point” generally refers to a credit value. Some embodiments equate a single point to $1 US and corresponding valuation for other currencies based on exchange rates against the US Dollar. However, other point valuations can also be used. Points can be achieved, for example, by an individual personally purchasing products or by certain customers purchasing products.
The acronym “POIP” refers to points that are auto-balanced to an Income Position to optimize a single payline per income position.
The acronym “POPL” refers to points that are auto-balanced to an Income Position to optimize more than one payline
The term “Powerline” generally refers to a line in a downline that that does not generate commissions for individuals. In the example illustrated below, the powerline is the line that accumulates the highest number of points.
The acronym “W1P” refers to “Where 1 point” and generally relates to the process in Auto-balancing where customer volume points are placed ($1=1 point) 1 point at a time in an individual's tree structure, such that commissions are maximized in regards to the rules of the compensation plan, assuring that volume is placed where commissions are maximized for a given pay period
As mentioned above, one embodiment of the invention includes auto-balancing.
In the illustrated example, an individual needs a certain number of points in a given cycle to qualify for any commissions. A line generating the most points is the power line and does not pay any commission. Any other paylines, in the illustrated example, have a maximum $2,000 commission paid at 15% of generated points. Thus, 13,334 generated points will result in the maximum commission for a payline. All volume generated from either personal purchases or from volume for individuals below the given individual in excess of the qualification requirements for a cycle is “Auto-Balanced.” The algorithm of this process will guarantee the best placement of each individual point to generate the maximum commissions earned.
Single Income Position Auto Balance
If an individual only has one income position, a computer system can implement the auto balance process to place the points in the following computer implemented steps (as illustrated in
Multi-Income Position Auto Balance
Referring now to
For example,
As described above, current MLM companies generally fall within three classifications of placement on individuals in a genealogical structure; namely, Unilevel, Matrix, and Binary. Each of these schemes is depicted in the Figures. For example,
Some embodiments herein implement a “multi-line” trees structure 608. The multi-line tree structure 608 of some embodiments of the present invention allows for generations of commissions from individuals placed in a down-line regardless of the levels down (rows). Furthermore, the structure allows for commissions to be earned on an unlimited number of columns. Accordingly, the present invention provides for infinite depth and width, whereas all other types of current structures have a finite number of either rows (depth) or columns (width) allowed. Embodiments can be used to convert pre-existing structures to the infinite depth and width structure.
Currently, only the matrix tree structure 604 can be placed into the unilevel tree structure 602 without disrupting the parent/child relationship that exists between two organizations. Furthermore, the binary tree structure 606 cannot be merged into either the unilevel tree structure 602 or the matrix tree structure 604, or vice versa without changing the parent/child hierarchical structure. However, given that the multi-line accommodates both plans of infinite depth and width, companies can now merge compensation plans by adopting the multi-line structure as illustrated below. Alternatively, distributors can have their existing compensation plan mapped to the inventive multi-line distribution plan, such as is illustrated by
The shaded positions are actual positions and the un-shaded positions correspond to possible positions within the new multi-line plan(s). Actual positioning can be determined during mapping to ensure actual compensation within the new multi-line plan(s) will at least equal previous compensation from the another plan being mapped to the new multi-line plan.
Some compensation plans, (almost exclusively found in the Binary) allow for Re-entry's. A Re-Entry is another position in the genealogical structure owned/occupied by the same individual or entity. Re-entry(s) enable individuals to reposition themselves under their current position somewhere in their down-line. The ability to pay commissions based on placement is fundamental to MLM structures.
However, until now, a single business owner has not been able to build in two separate positions intentionally (some exceptions exist in the case of marriage, or inheritance but even under such circumstances the businesses are treated as two separate businesse' in terms of operation, point accumulation and recognition).
While flexibility is granted where Positions are allowed to be placed, all compensation plans generally require that a pathway exists from the bottom of the genealogical tree from one line ultimately up through the initial position. In the Multi-Line structure, Re-entry's are granted and placement is anywhere including cross-line to the initial income position, such as that illustrated in
By allowing infinite depth and width, re-entry's are allowed to be placed anywhere in an entire organization regardless of initial placement. The result is for individuals to work together in any team within an entire organizational structure worldwide, and still accumulate sales volume, group volume, achievements and recognition as a single entity rather than two distinct businesses. It also effectively allows individuals to build organizations away from the individual who initially sponsored them into the organization. Rules are put into place to assure that the sponsor of any individual is benefited continually regardless of the re-entry cross-line placed income position, while also generating commissions for those under whom the re-entry was placed. Placement therefore becomes fluid rather than ridged.
Referring now to
The method further includes identifying all of the lines for the individual in the multi-level marketing system (act 1004). Again, as illustrated in
The method further includes applying all of the points generated for the given time period to the lines for the individual in the multi-level marketing system in a fashion so as to maximize commissions for the individual irrespective of which line generated points (act 1006). Again, the examples illustrated in at least
For example, the method 1000 may be implemented where applying all of the points generated for the given time period to the lines for the individual in the multi-level marketing system in a fashion so as to maximize commissions for the individual includes applying points to one or more of the lines to earn a maximum commission on the one or more of the lines and dividing any remaining points as equally as possible among remaining lines that do not have sufficient points applied to have a maximum commissions on those lines. Thus, for example, if the maximum commission is $2,000 per line, and commissions are 15% of points, then the maximum number of points that should be applied to a line is 13,334. This can be performed so long as there are sufficient points to bring lines up to the maximum commission for that line. This may qualify an individual for additional bonuses for meeting certain maximums. Once there are no longer sufficient points to bring a line up to the maximum commission for that line, the points can be divided as equally as possible over the other lines.
Alternatively, the method 1000 may be practiced where applying all of the points generated for the given time period to the lines for the individual in the multi-level marketing system in a fashion so as to maximize commissions for the individual includes applying points to one or more of the lines to earn a maximum commission on the one or more of the lines and applying one or more points to remaining lines that do not have sufficient points applied to have a maximum commission on those lines by, for each point applied to a remaining line, determining which line will generate the highest commission if the point is applied to that line. For example, this can be done by creating a hypothetical point distribution by distributing each given point on each line and determining the effect of the distribution on each line. Whichever distribution yields the highest commission will be made permanent and the point will be applied to that line.
The method 1000 may be practiced where the multi-level marketing system is a system that has a predetermined maximum width or depth. The method may further include converting the multi-level marketing system to a substantially unbounded system that does not have a predetermined limit of either width or depth by overlaying a representation of the multi-level marketing system on the substantially unbounded system. For example,
The method 1000 may further include adding re-entry points for the individual into the multi-level marketing system allowing the individual to have different points in the multi-level marketing system for generating commissions.
Referring now to
The method further includes identifying nodes represented in the first tree representation of the first multi-level marketing system (act 1104).
The method further includes mapping the nodes represented in the first tree representation of the first multi-level marketing system to nodes of a second tree representation of a second multi-level marketing system (act 1106).
An example of the method 1100 is illustrated in the overlaying of multi-level marketing systems illustrated in
The method 1100 may be practiced where the first multi-level marketing system is a system that has a predetermined maximum width or depth and where the second multi-level marketing system is a substantially unbounded system that has essentially an unbounded limit of either width or depth.
The method 1100 may further include adding re-entry points for an individual into the second multi-level marketing system allowing the individual to have different points in the second multi-level marketing system for generating commissions. As noted, examples of this are illustrated by
The method 1100 may further include the following acts:
Determining points generated for a given time period, the points being generated by one or more lines for an individual in the second multi-level marketing system; identifying all of the lines for the individual in the second multi-level marketing system; and applying all of the points generated for the given time period to the lines for the individual in the second multi-level marketing system in a fashion so as to maximize commissions for the individual irrespective of which line generated points.
In some such embodiments, applying all of the points generated for the given time period to the lines for the individual in the second multi-level marketing system in a fashion so as to maximize commissions for the individual includes applying points to one or more of the lines to earn a maximum commission on the one or more of the lines and dividing any remaining points as equally as possible among remaining lines that do not have sufficient points applied to have a maximum commissions on those lines. Alternatively or additionally, applying all of the points generated for the given time period to the lines for the individual in the second multi-level marketing system in a fashion so as to maximize commissions for the individual may include applying points to one or more of the lines to earn a maximum commission on the one or more of the lines and applying one or more points to remaining lines that do not have sufficient points applied to have a maximum commission on those lines by, for each point applied to a remaining line, determining which line will generate the highest commission if the point is applied to that line.
Referring now to
The method 1200 may be practiced where adding re-entry points for the individual into the multi-level marketing system includes adding one or more re-entry points for the individual that do not pass through a single top point for the individual in a hierarchy for the multi-level marketing system.
Various embodiments and features associated with the creation and use of the multi-line compensation plans have been described above. It will be appreciated that these embodiments include the use of specialized computing systems having hardware (e.g., processors, memory, input and output devices) that are configured to process executable instructions that are accessed by or stored by the computing systems and that, when executed, implement the functionality described herein and which also extends to automatic identification, tracking and payment of commissions for the distribution lines, as well as auto-mapping and generation of new multi-line distribution trees that correspond to existing compensation plans, and for performing the auto-balancing or any other functionality described herein.
To further emphasize the use of specialized computer systems, it will be appreciated that the present invention also extends to embodiments that include or utilize a special purpose or general-purpose computer including computer hardware, and physical and other computer-readable media for carrying or storing computer-executable instructions and/or data structures. Such computer-readable media can be any available media that can be accessed by a general purpose or special purpose computer system. Computer-readable media that store computer-executable instructions are computer storage media (devices). Computer-readable media that carry computer-executable instructions are transmission media. Thus, by way of example, and not limitation, embodiments of the invention can comprise at least two distinctly different kinds of computer-readable media: computer storage media (devices) and transmission media.
Computer storage media (devices) includes hardware storage devices such as RAM, ROM, EEPROM, CD-ROM, solid state drives (“SSDs”) (e.g., based on RAM), Flash memory, phase-change memory (“PCM”), other types of memory, other optical disk storage, magnetic disk storage or other magnetic storage devices, or any other hardware medium which can be used to store desired program code means in the form of computer-executable instructions or data structures and which can be accessed by a general purpose or special purpose computer.
A “network” is defined as one or more data links that enable the transport of electronic data between computer systems and/or modules and/or other electronic devices. When information is transferred or provided over a network or another communications connection (either hardwired, wireless, or a combination of hardwired or wireless) to a computer, the computer properly views the connection as a transmission medium. Transmissions media can include a network and/or data links which can be used to carry or desired program code means in the form of computer-executable instructions or data structures and which can be accessed by a general purpose or special purpose computer. Combinations of the above should also be included within the scope of computer-readable media.
Further, upon reaching various computer system components, program code means in the form of computer-executable instructions or data structures can be transferred automatically from transmission media to computer storage media (devices) (or vice versa). For example, computer-executable instructions or data structures received over a network or data link can be buffered in RAM within a network interface module (e.g., a “NIC”), and then eventually transferred to computer system RAM and/or to less volatile computer storage media (devices) at a computer system. Thus, it should be understood that computer storage media (devices) can be included in computer system components that also (or even primarily) utilize transmission media.
Computer-executable instructions comprise, for example, instructions and data which, when executed at a processor, such as a physical hardware processor, cause a general purpose computer, special purpose computer, or special purpose processing device to perform a certain function or group of functions. The computer executable instructions may be, for example, binaries, intermediate format instructions such as assembly language, or even source code. Although the subject matter has been described in language specific to structural features and/or methodological acts (which are implemented by a specialized computing system or network of computing systems), it is to be understood that the subject matter defined in the appended claims is not necessarily limited to the described features or acts described above. Rather, the described features and acts are disclosed as non-limiting examples of implementing the invention.
Those skilled in the art will appreciate that the invention may be practiced in network computing environments with many types of computer system configurations, including, personal computers, desktop computers, laptop computers, message processors, hand-held devices, multi-processor systems, microprocessor-based or programmable consumer electronics, network PCs, minicomputers, mainframe computers, mobile telephones, PDAs, pagers, routers, switches, and the like. The invention may also be practiced in distributed system environments where local and remote computer systems, which are linked (either by hardwired data links, wireless data links, or by a combination of hardwired and wireless data links) through a network, both perform tasks. In a distributed system environment, program modules may be located in both local and remote memory storage devices.
The present invention may be embodied in other specific forms without departing from its spirit or essential characteristics. The described embodiments are to be considered in all respects only as illustrative and not restrictive. The scope of the invention is, therefore, indicated by the appended claims rather than by the foregoing description. All changes which come within the meaning and range of equivalency are to be embraced within their scope.
This application claims priority to U.S. Application No. 61/700,095 filed on Sep. 12, 2012, the disclosure of which is incorporated herein, in its entirety, by this reference.
Number | Date | Country | |
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61700095 | Sep 2012 | US |