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Example of Multi-Currency Working in MLM Software
Here’s the example of the working of multi-currency features in two scenarios: Product Purchase and Commission Distribution.
Suppose the system is configured as follows:
Supported Currencies: The MLM software supports two currencies: USD and INR (Indian Rupee).
Base Currency Setup: The base currency configured in the MLM software is USD (United States Dollar).
Product Value: The product’s value is $100 USD.
Scenario 1: Product Purchase
Now, let’s consider a scenario where a distributor wants to purchase the product for $100 USD but wants to pay in INR. Here’s how the multi-currency feature might work:
Currency Selection: The distributor logs into their account on the MLM platform and navigates to the product purchase section. They have an option to select the currency in which they want to make the purchase.
Currency Conversion: The software fetches the current exchange rate for USD to INR either from the system configured by the admin or from an API connected to a third-party financial service. Let’s say the exchange rate is 1 USD = 75 INR.
Calculation: The software calculates the equivalent amount in INR for the $100 USD product purchase. In this case, it would be 100 USD * 75 INR/USD = 7500 INR.
Display: The Multi currency system displays the converted amount to the distributor, showing that they need to pay 7500 INR for the product.
Payment Processing: The distributor proceeds with the purchase using their preferred payment method, which could include bank transfers, credit/debit cards, or other payment gateways integrated into the MLM software.
Confirmation: Once the payment is successfully processed, the distributor receives confirmation of the purchase in their chosen currency (INR), along with any relevant order details.
Scenario 2: Commission Distribution
Let’s assume that in this MLM structure, distributors earn a 10% commission on each sale they make.
Commission Calculation: After the purchase is completed, the software calculates the commission earned by the distributor. Since the commission rate is 10%, the commission would be:
10% of 7500 INR = 750 INR
Commission Distribution: The commission is distributed to the distributor’s account. The MLM software ensures that the commission is credited to the ewallet in the same currency as the product purchase, i.e.750 INR in this case.
By incorporating commission distribution alongside the multi-currency feature, the MLM software ensures that distributors receive their earnings accurately and in their preferred currency, further enhancing the flexibility and convenience of the platform for distributors operating in different regions.
Key Currencies Supported by Our Integrated MLM Software
Here’s a list of some top currencies that could be integrated with your MLM software:
- United States Dollar (USD)
- Euro (EUR)
- British Pound Sterling (GBP)
- Australian Dollar (AUD)
- Swiss Franc (CHF)
- Indian Rupee (INR)
- Mexican Peso (MXN)
- Singapore Dollar (SGD)
Exchange Rate Management in MLM Platform
It is important to update the exchange rate in your MLM business to ensure transparency, accuracy, customer trust, loyalty, and confidence while conducting international business.
There are two methods to update the exchange rate:
- Manual Pricing: In this method, the admin should manually update the exchange rate of each currency. It requires extra attention, as updating a wrong value may lead to financial losses and affect the business’s credibility as well.
- Automatic Pricing: Our multi currency system supports the integration of third-party services with our network marketing software. You can use services like Currency Layer, Fixer, or any other services with our software. Using these services avoids the hassle of manual updates, but they come with an extra cost for usage.
Benefits of Multi-Currency MLM Software
- User Convenience: Customers can view product prices, taxes, and shipping costs in their local currencies, eliminating the need for manual calculations and enhancing the shopping experience for international customers.
- Build Trust: As an MLM company, you understand that customers may leave the checkout page if they’re confused about the amount they have to pay. Simplifying the checkout process by displaying purchase totals and other information in their local currencies increases transparency and builds trust among customers, reducing the likelihood of them abandoning their carts due to confusion.
- Higher Conversion Rate: Providing information in local currencies improves the user’s confidence, and the likelihood of purchasing the product is high.
- Easy Checkout: The MLM system provides a clear breakdown of item costs and additional charges in the customer’s local currency, streamlining the checkout process and making it quick and easy for them.
- Global Market Reach: Offering multi-currency features allows customers from different countries to purchase from your platform, expanding your MLM business’s reach to a broader audience worldwide.
- Accurate Commission Calculation: Distributors in the MLM network can view their commission earnings in their preferred currency and receive payouts in the same currency. This increases loyalty and encourages network growth through word-of-mouth referrals.
Downsides of Multi-Currency MLM Software
- Currency Exchange Risks: Sudden fluctuations in exchange rates can affect product prices, commissions, and overall company profitability. These changes may result in financial losses and pose risks to MLM businesses.
- Higher Maintenance Costs: Adding a new currency requires an additional payment gateway that supports the same currency. Additionally, if you want to automatically update currency exchange rates in the MLM system, it may require additional financial services. Maintaining and managing both services may incur extra costs.
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