Besides many physical products and virtual product in MLM, recharge is also on product or we can service which many MLM companies are providing along with their other products. With the growth in mobile users in country, recharge has been essential thing for every person, regardless age group, profession or anything. And this fascinating large market of recharge enticed MLM industry and they started providing it as one of the service to their consumers or we can say members.
What is RECHARGE product in MLM ?
As we said, ever growing market base of recharge service enticed MLM industry and they started providing this service to their members. MLM companies, who wants to provide facility of recharge to their members, integrate recharge facility with their software.
Now whenever any of the members earns commission from the sales of the product they have option to recharge, to top up their mobile or someone else’s mobile from the commission. MLM company will provide member facility to top up any mobile directly. Sometimes MLM companies also provide advance benefits with this like top up of 100 INR in 98 INR, or sometimes they also provide commission on recharge done by members as well.
This way, MLM company provides recharge facility to their members, so they can top up their or someone else’s mobiles from their earned money.
How it works?
As we said, MLM companies integrates facility to recharge mobile in their software. To do so, MLM companies have to purchase this integration software from service or software providers who can provide this. These service providers charges some amount to purchase this integration software, which is also called recharge API. Besides the money they charge from you, they also take some share of commission from every recharge done through, according to the decided commission margin slabs.
These commission margin slabs vary according to the telecom companies and according to the providers from whom you bought the recharge API. For some companies it is as low as 1% and for some companies it is as high as 3%. It fluctuates between 1% to 3% or maximum to maximum 4%.
Some service providers don’t charge from you for recharge API, but they take larger share from the commission you earn from all the recharges, or the whole commission sometimes !!
Now, this API can be integrated with your MLM software. It can be integrated in a way that any member of your company can recharge any mobile he/she wants to from the money earned by him/her. When member will recharge they will get additional benefits. Additional benefits like more talk time than the money they will pay or some % discount etc. Members can have facility of recharge directly from the money in their wallet. Amount of recharge get deducted from their wallet or from their commission cheque.
Some MLM company also provide only recharge services as their product. They come up with business plan where members of the company earns commission on the recharge they do, in their mobile or anyone’s mobile, along with commission they earn on recruiting new people in the company.
This service has its own pros and cons, which should also be considered if MLM company is planning to include recharge service in their plan, which we will cover in our coming post about Recharge MLM Product