Monday, June 11, 2007

Multi level marketing maths funda

Multi Level Marketing (MLM) a bit of maths for programmers

You must have heard about multi-level marketing (MLM). This is just like making members for a particular product/institution etc at multiple levels.Eg: Company has a scheme to sell PC or any item. If the client purchasing pc from the company catch 3 clients then he will get 25% discount. The same is applicable for the clients he has brought.

Here you are required to refer people to the company where they can bye a product / service. The referred people who have taken up the membership continue the trend by referring more members. The members referred can be set at different levels. Generally there can be only one member at level one (root level). At second level there can be three and third level there can be 9.

So at each level there can be (levelxlevel members)

At level 1st (1 members)
At level 2nd (1x3=3 members)
At level 3rd (3x3=9 members)

At level 4th(9x3=27 members)

Sometimes there may be more members at each level (depending on how companies formulate MLM schemes)

(1) -level 1
(2) (3) (4) -level 2
(5)(6)(7) (8)(9)(10) (11)(12)(13) -level3 on..

So while programming a software you must be aware of the some basic maths.

1) At each level there may be (levelxlevel) members
2) If the scheme can posses only 3 members directly under(this is called downlink) a particular node(member) then we can calculat the no within that by a mathematical formula as
([NodeNo x 3] - 1) (NodeNo x 3) ([NodeNo x 3] + 1)

Ex: the following members are under node 3. ([3x3]-1 = 8 , 3x3 = 9 , [3x3]+1 = 10)

You may further enhance the above formula in case where there may be more than 3 members within a node.(downlink)

You must technically achieve the following while building a MLM kind of software:
1)Track members and sub-levels at various levels
2)Dynamically build a tree based on node name (you have to understand the above formula for this)
3)Based on no of members made at each level calculate points gained by each members. Eg: if you get particular no of points you may get a tricycle, Bycycle, mopet, schooter, bike, car and so on....just joking
4)Make n no of reports.


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