Different marketing methods have been evolving over the ages to make the entire process lucrative, profitable, and efficient. One such method of marketing that evolved leveraging network marketing was the concept of MLM or multi-level marketing. It is one of the most lucrative and widespread industries having its presence in more than 100 countries across the globe. The industry is currently valued at a staggering $167 billion. It has been predicted by ASSOCHAM that the MLM industry is poised to experience steady growth in 2021.
In all of this, it cannot be denied that the MLM industry has its own share of misgivings and disadvantages. The entire industry is plagued with intermediaries that translate into increased costs and in some dubious cases, even manipulation of data. There have also been instances of delayed payments that jeopardize the trust that people have in the brand and the business.
To counter both these challenges, smart contract-based MLM platforms were introduced.
How does a smart contract MLM work?
If we were to look at the challenges faced by the MLM industry, it all boils down to trust and swift transactions. The digital distributed ledger technology called the blockchain can come to the rescue.
The smart contract is a self-executing program that can be considered the epicenter of blockchain technology. With a smart contract, you can program certain actions to be automatically executed upon certain conditions being met.
Since the reach of the blockchain is global and is not subject to any censorship or authority, the fulfillment of transactions is fast even at a global scale. The blockchain is transparent and can be audited by anyone without compromising on security, and it can also help establish trust. The immutability of the digital ledger ensures that data cannot be manipulated or tampered with unless there is explicit consensus from all the participating members… and that is not possible even ideally!
Why is TRON preferred?
Generally, the most preferred blockchain for anything that involves smart contracts is Ethereum. However, Ethereum has its own share of limitations. The new blockchain called TRON is preferred over Ethereum because it has quite a lot of advantages.
- The first and foremost advantage that TRON brings to the table is the low transaction fee. The transaction fee on TRON is calculated based on the energy spent and bandwidth used. It is quite possible that the transaction fee on TRON quite close to zero.
- Another territory that TRON wins without question is the speed of transactions. While Ethereum has a considerably better TPS rate than bitcoin, TRON can boast of a TPS that is way ahead at 25,000 transactions per second.
- TRON is supported by a dedicated team that does not plan on backing out in the near future. In fact, they have a 10-year plan and they intend to drive this blockchain towards success without any compromise.
- TRON is steadily growing in terms of the number of decentralized applications it can support. The year 2020 recorded or 2x increase in the number of applications on TRON.
More than all of this, TRON also provides the flexibility to accommodate any kind of MLM program into it. All these features make TRON one of the most versatile and practical blockchains ever created, irrespective of its relevance in the MLM business.
A bit about TRON
TRON was launched in 2017 by a nonprofit organization based out of Singapore. TRON has always stood by the philosophy of complete decentralization. The native token of TRON is called Tronix, abbreviated TRX. The token is worth about $0.03 and the value is expected to steadily increase. A lot of crypto enthusiasts have predicted that TRON is the next big thing in the blockchain world, and its preference for building smart contract MLM businesses ascertains this fact.
Features of a smart contract MLM on TRON
Launching a smart contract MLM on the TRON network is relatively easy these days. However, there are a few features that you will need to essentially incorporate to ensure that your smart contract-based MLM on TRON capitalizes on all the advantages that the blockchain has to offer.
When you engage in the process of smart contract MLM development on TRON, you will need to ensure that you introduce crypto wallets into the equation. This will eliminate the need for withdrawal requests. By default, the transaction speeds on TRON are really high, and if the wallet is introduced, the members of the MLM will not have any problem in accessing the funds that they earned.
It would not be an exaggeration to say that the dependability of MLM that operates on the blockchain is only because of the smart contract. The smart contract brings in a considerable degree of reliability due to its attribute of immutability. Therefore, you will need to ensure that the TRON smart contract development for MLM business takes into consideration the fact that they cannot be altered or modified at any time in the future.
It is important to ensure top-notch security for your smart contract MLM. The MLM should be made tamper-proof and you will also need to ensure that your smart contract MLM operates on the latest version of TRON. Also, including storage technologies like ChaosDB can maximize efficiency without compromising on security.
When you engage in smart contract MLM development on TRON, you will also need to ensure that the MLM is compatible with Ethereum. This gives room for Ethereum smart contracts to work on TRON as well.
The features of the interface
It is to be remembered that the ultimate aim of any person joining an MLM business is to increase their earnings. In the long run, The participants of the MLM intend to burn a passive income without having to work. Your smart contract-based MLM on TRON should have all the features it takes to make this possible.
The user should be able to easily onboard the participants. The participants can register on the platform by paying 400 TRX. There are certain MLM businesses like Forsage that ask for a higher joining fee but the concept remains that the amount that you pay is redirected towards the members above your level.
When the user registers, they are allotted a unique wallet number. This would mean that the need for remembering account details and passwords is completely eliminated.
Just like any other MLM, the new users are expected to make three references to fill the slots. It is to be remembered that there is no compulsion for the user to make these referrals. It is either that they do not earn an extra income or at times, the system can even mandate free referrals to users.
When our user successfully refers three people into the network, the participants receive 1200 TRX in their wallet which is, essentially, the 400 TRX that every user paid to enter the network. This network keeps growing and the participants can ultimately reach the eightth level which gives them a profit of about 70,858,800 TRX.
The success story of Forsage
Forsage this one such MLM that was created on the TRON blockchain. To start with, even Forsage was built on Ethereum but it slowly moved to TRON. Forsage boasts of a transaction volume of about $1,369,543 across the past seven days which resulted from more than 6000 transactions. You can join Forsage for a measly fee of 0.05 ETH which translates to about $79 in today’s exchange rate. This is a low joining fee considering the other MLM businesses. Even about a couple of quarters ago, Forsage had about 3000 members joining the network every day.
The success of Forsage is a resounding testimony to the dependability and profitability of smart contract MLM business. Needless to say, it is a great crypto business idea.
If you are one of those aspiring entrepreneurs who would like to explore the realm of smart contract MLM businesses, all you need to do is get in touch with a company that specializes in TRON smart contract development for MLM business. They will take care not only to customize the smart contract but also the interface in line with the users you expect to join your MLM. You can enjoy all the benefits of the MLM business without having to worry about everyday troubles like transparency, human intervention errors, and fulfillment of payments.
Aria Brielle is a Blockchain Consultant at Cryptocurrency Exchange Script. I’m enthusiastic about learning new advancements in the crypto exchange and Tron Smart Contract. I collaborate with various organizations and help analyze their competitors to provide them better strategies to improve and keep their businesses up to date.