Yet again, Decentralized Finance has made startling and highly commodious inventions within financial systems, the latest being MLM platforms on blockchain networks like TRON, Ethereum, and Binance Smart Chain. This has revitalized and completely altered the outlook on MLM platforms, which has suffered its fair share of losses in terms of legal and security issues, to say the least. Now businesses and entrepreneurs are flocking towards kicking off their own MLM businesses, and customers are intrigued and interested to be a part of this new model.
What is MLM?
MLM or Multi-level marketing is also referred to as Referral Marketing or Network marketing. They’re infamously referred to as ‘The Pyramid Scheme’ as well. This mode of business has benefited companies and their customers for a long time, ever since the 1940s, to be exact. This is how MLM businesses usually work – Companies incentivize customers to promote and advertise their products/services to their friends, neighbors, and family – potential customers, who are then absorbed into the companies network. This is seen as a win-win situation for both parties who are benefited at the end of the day.
With the revolution that is DeFi and the widespread integration of smart contracts within several industries, MLM businesses have risen again, overcoming their previous allegations and drawbacks. The money-making opportunities within MLM have significantly been amplified, showing unparalleled growth and potential. MLM is estimated to reach over a billion in total value locked. Leveraging this abrupt boon would be a judicious decision for businesses and entrepreneurs looking for a venture to invest in.
Conventional MLM businesses – Why did they fail?
Traditional MLMs were riddled with inefficiencies and disorganization that led to their downfall. For potential customers to join a network like this, credibility is important. This trust and reliability were absent among traditional MLM companies. This is followed by a lack of transparency between the users. Several vital information was withheld from users. Mutability was the next factor that was a major drawback. The incentives and bonuses that were promised were open to revision by the business owners leaving the users doubtful with ambivalent feelings. Finally, real-time transactions were absent from the system. The processing time of transactions was very long, and settlement of funds was often delayed.
Thankfully, Decentralized Finance offered a viable solution to bring back MLMs to the mainstream through robust blockchains like TRON, Ethereum, and Binance Smart Chain. Their use cases will be discussed here!
Smart Contracts – The ultimate saving grace of MLM platforms
Integrating MLM businesses with smart contracts will give it the highest level of security, credibility, and immutability – the very aspects that it previously lacked. Blockchain smart contracts like Ethereum smart contract or TRON smart contract completely eliminate the need for centralized authorities and streamline the entire process. Have a look at some of the advantages smart contracts furnish –
- Automatic transactions
- Transparency
- High-end security
- A marked increase in trust
- Return on referrals
- Quick earning
- Instant payment and transitions
- Absence of manual work
- Huge ROI on minimal investments
TRON, Ethrerum, and Binance Smart Chain – which is the ideal platform for an MLM platform?
All of these blockchain networks hold particular advantages over each other. Picking one network over the other is ambitious and debatable, but it boils down to the particular requirements and needs of the MLM business. Nevertheless, these are the benefits and advantages each blockchain network holds within the MLM sector.
TRON Network –
- It is much accessible to find a better token standard within TRON. This paves the way for access to a wide pool of resources.
- MLM on TRON works on a binary matrix business model
- TRX tokens are given as rewards or incentives for customer participation
- Since it is an automated system, human interactions have been made counterproductive.
- TRON MLM is thoroughly transparent so users can eliminate mistrust from their transactions.
- Automatic and instant transactions are now possible with the TRON network.
- Complete elimination of middlemen.
Ethereum Network –
- Ethereum happens to be the premium choice for MLM business
- Completely decentralized
- Autonomous and transparent
- A highly secure network
- Forsage, Million Money, Doubleway, Lionshare, and Etrix are some of the MLMs functioning on the Ethereum Blockchain.
- MLM functions like member allocation, commission system, internal P2P transactions, etc., are maintained automatically by the network.
Binance Smart Chain –
- BSC is comparatively a lower investment than the other two networks
- The integration of smart contracts make it a significant risk-free platform
- Since BSC is a novel network along the lines of TRON and Ethereum, investing there is promising for a growing MLM business
- BEP-20 tokens is an added advantage
- There is a marked decrease in transaction costs
- It is integrated with a cross-chain mechanism
Highlights and benefits of employing blockchain technology like TRON, Ethereum, and Binance Smart Chain in MLM businesses
- Since smart contracts ensure governing of the MLM business now, the workflow of the MLM is much more simplified, transparent, and accessible
- Integration of smart contracts like TRON and Ethereum will indisputably attract a lot of investors and customers to MLM platforms since their uses have gained a lot of traction in the crypto community
- The immutability that has now come into operation in MLMs guarantee user engagement
- Participants of varied MLM Schemes can now identify and track transactions thanks to the open-ledger made possible by smart contracts
- Since peer-to-peer transactions are facilitated, scams and hacks are out of the question
- Public and private keys generated contribute to the security and protection of private data
Blockchain App Factory’s DeFi based MLM platform development
At Blockchain App Factory, we specialize in creating and launching robust and competent MLM platforms on top blockchain networks like TRON, Ethereum, and Binance Smart Chain. W have integrated, in our developmental process,
- Complete decentralization
- Immutable and transparent smart contracts
- Risk-free platform development
- P2P transactions
We understand that your MLM business will have differing needs and requirements. That’s why we offer a varied range of blockchain solutions. Some of the MLM plans that we offer to include the uni-level plan, Binary plan, hybrid plan, matrix plan, and working plan. To top it off, our MLM platform development solutions are white-label, customizable, and scalable.
