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How does the referral program work?
The process of the referral program in multi level marketing software is straightforward and primarily consists of two methods.
The first method is by using a replica link.
In this method, each distributor is assigned a unique username in the MLM software, and the system automatically generates a link containing their username, known as a replica link.
For instance, if your username is ‘albert’,
your referral link or replica link would be: https://domain.com/username=albert.
When individuals click on this link and proceed, they automatically join under you on the MLM network. Consequently, you receive referral commissions.
The second method involves using a product link.
Within our MLM software, each product is assigned a unique ID and link. Distributors can easily share these product links within their circle.
When someone makes a purchase by clicking on your shared product link, they become part of your network, and you earn referral commissions accordingly.
Step-by-step guide on referring new members
To effectively refer new members and maximise the benefits of the referral program, follow these steps:
Step 1
Access Your Referral Dashboard: Log in to your MLM software account and navigate to your referral dashboard. You can see the referral link there.
Step 2
Share Your Referral Link: You can easily share your replica link with your friends and family using our integrated MLM software. Simply access the link from the software dashboard and choose your preferred method:
- Share on Social Media: Share directly to any social media platform with just a click.
- Share QR Code: Generate a QR code for your replica link and share it conveniently.
- Copy to Clipboard: Copy the link to your clipboard and share it via any app or email.
Step 3
Repeat and Expand: Continuously refer new users to expand your network and maximise your earnings.
How to Track and Monitor Referrals in MLM Software ?
Each member in our network marketing software is provided with a unique referral link, ensuring accurate referral tracking.
The distributor has a dedicated referral dashboard where they can see the new referrals, as well as the commissions earned from each referral. As soon as new referrals join, they are seamlessly updated into the network, and distributors can monitor real-time updates on our genealogy tree.
What is Referral Commission?
Referral commission is earned when a distributor directly refers a new customer who subsequently joins the MLM program. This commission may be a flat amount or a percentage of the purchased product or services.
Example of referral commission :
Let’s create an example scenario to illustrate how referral commissions work in an MLM (Multi-Level Marketing) program:
Company XYZ sells health and wellness products through an MLM business model. Emily is a distributor for Company XYZ, and she earns commissions by selling products directly to customers and recruiting new distributors into the program.
Now, let’s say Emily refers her friend, Sarah, to join the MLM program as a distributor. Sarah is excited about the opportunity and decides to sign up under Emily’s referral link.
Upon signing up, Sarah purchases a starter kit worth $200 to begin her journey as a distributor. Company XYZ offers a referral commission of 10% on the starter kit purchase to the referring distributor (Emily, in this case).
So, Emily earns a referral commission of $20 (10% of $200) for referring Sarah to join the MLM program. This commission is typically paid out according to the company’s commission payout schedule, which could be weekly, bi-weekly, or monthly.
In this example, Emily benefited from referring to Sarah, not only by expanding her downline but also by earning a commission on Sarah’s initial purchase. This incentivizes distributors like Emily to actively recruit new members into the MLM program.
Advantages of Referral Program in MLM Industry
Increased customer acquisition: Referral programs can attract new customers through word-of-mouth recommendations from satisfied existing customers.
- Cost-effective marketing: Since referrals come from existing customers or affiliates, referral programs often have lower acquisition costs compared to traditional marketing channels.
- Trust and credibility: When the referral link is shared with friends and family, people tend to trust the individual who shares the link. This increases the ease of customer conversion.
- Targeted audience reach: Referral programs allow businesses to target specific demographics or customer segments through their existing network, ensuring better alignment with their ideal customer profile.
- Builds strong customer relationships: By rewarding both the referrer and the new customer, referral programs encourage ongoing engagement and loyalty.
- Scalability: Referral programs can easily scale as the business grows, accommodating a larger customer base and expanding network of referrers.
- Brand advocacy: Referral programs turn satisfied customers into brand advocates who actively promote the business to their networks, creating a ripple effect of positive word-of-mouth marketing.
- Competitive advantage: Implementing a well-designed referral program can differentiate a business from competitors.
- Software integration: By connecting your CRM or any third-party software integration with our MLM Software, you can automate the referral program and commission distribution.
Take the first step: Try our referral program now!
Contact our sales experts to schedule your free demo today.
