Many of the MLM companies and service providers of MLM industry out there are providing discount vouchers as a part of their MLM Products. With the rise in number of people doing shopping from big and reputed brands, this product has become popular and every MLM company started opting it without taking sufficient knowledge about this MLM product, without knowing how it works and without giving it a thought whether this MLM Product is suitable for their company or not.
So let’s understand a little about this MLM Product called DISCOUNT VOUCHERS.
What is Discount Vouchers?
People like to do shopping these days and they are likely to do it more when they get discount on the things they buy. Discount vouchers are one such product, which tell members of the MLM company that they can have extra discount on their shopping !
Basically, discount vouchers are some printed cards with name of shopping brands and percentages of discounts on it. By using these cards, members of MLM companies can have discounts on their shopping from these brands.Let’s go further and understand how users can get discounts and how it works.
How it Works?
To provide discount vouchers to their members, MLM companies purchase vouchers from service providers who provides it and provides discounts to members of the company. MLM company purchases vouchers from service providers in predefined minimum quantity by paying predefined amount of discount vouchers to service providers. They provide these vouchers to their members, in their package or on some specific achievement etc.
These vouchers come with time limit. User can redeem these vouchers within specific time. After the specific time, these vouchers have no value to users.
To redeem the discount vouchers, members should have original bills of their shopping, which they have to submit. To redeem discount vouchers, members submit these discount vouchers to MLM company with required documents, which MLM company provides to its service provider. Service provider verifies all the documents along with these discount vouchers and if found eligible, provides discount to the members.
Things this MLM product contains :
In discount vouchers, there are some predefined brands, which may be well known big brands or some specific small brands as well. Users get discount vouchers in combo of different brands with specific percentage of discount on it. These percentage of discounts varies between 5 to 15 percentages. Users can redeem these vouchers when they shop from brands available in their discount vouchers by providing original bills or necessary documents along with discount voucher.
What is available in this product ?
Brands on which users get discount varies according to service providers from where MLM companies are buying these discount vouchers. Generally discount vouchers contains discounts between 5 to 15 percentage discounts on brands like Levi’s, pepe jeans, dominos, cafe coffe day, big bazzar, peter england, pizza hut, samsung, i phone and many more big brands like these
How MLM companies can use this product?
MLM companies can provide discount vouchers to their customers in their product package, or they can include it in their business plan as incentive on some specific achievement like creating specific number of sales or achieving specific level etc. To provide discount vouchers, MLM companies will have to buy it from service providers.
There are many service providers out there in MLM industry who claims to provide discount vouchers with high usability and with the promise of providing high discounts to each user who will redeem the vouchers, but actually they don’t provide discounts to every users or don’t keep their promises.
Basically service providers provide discounts to the members from money which they receive from the MLM company itself. They know it very well that there are very less chances of all of these vouchers to be redeemed. Only few members from all the members with vouchers redeem these vouchers. And when they redeem, service providers provide them discounts till the amount of discounts reach the amount MLM company paid to service providers. And if the enough users don’t redeem it, which is mostly the case, all the money or major part of the money MLM companies paid them is their profit. So if we observe properly, service provider provides discount to MLM company’s users from the money MLM company paid to service provider.
We suggest MLM companies not to choose these product. And if they want to choose it anyway, we recommend them to manage it on their own instead of paying huge amount of money to service providers and not getting discounts of more worth than the money they paid to service providers.