Recharge : Pros And Cons of MLM Product

In our earlier article about Recharge, we have seen what the recharge service in MLM is and how does it work. As recharge is essential service for each and everyone today, there are many things which should be considered before deciding to provide recharge service in MLM company.

Here are the Pros and Cons of having recharge product in MLM.

Pros of Recharge MLM Product :

Having Recharge as a service in your MLM company comes with some advantages. Below are some of the pros of having recharge service in your MLM company

  • Your members won’t have to go somewhere else to recharge their phones or their family member’s phones.
  • Members won’t have to pay money for it, they will be able to recharge from money in their wallet or commission they earned
  • Members will get a little discount on every recharge he/she will do. Beside that, members can earn a little more commission even by recharging phones
  • MLM company can even save money from the commissions it members earned if they recharge from that money. This way instead of paying the full money to member, MLM company will pay a little less money than that to the telecom company. For example, if a user recharge a top up of 100 INR from his/her wallet, it’s not necessary that it will also cost MLM company 100 INR. It will depend on the commission slabs. If commission of MLM company is 4% and let’s say company is providing 1% discount to its members, MLM company will still have 3% commission f the recharge amount. So if a user will recharge 100 INR, after deducting 1% discount, it will cost member 99 INR which will be deducted from his/her wallet or earned commissions. And MLM company will have 3% commission left as its profit which is 3 INR on every 100 INR.

Cons of recharge MLM Product :

Well, there are also disadvantages of having recharge service in MLM company.Below is the list of some of the Cons of recharge service in MLM company.

  • Major of all, market is full of traditional recharge providers with huge operational money, which have big names and good reputation in field – For example, PayTM, FreeCharge, MobiKwik and many more. They offers attractive offers and discounts on every single recharge user do, which MLM company can’t afford to provide. So users are more likely to prefer them instead of MLM company, of course for the more benefits they get from there.
  • With emergence of technology in India, recharge your phone has been game of just tapping some fingers no your smart phone. Many services are there in market which makes it easy to recharge their phone for users and with advance offers and discounts. Users are more likely to prefer that because it’s easy and more beneficial.
  • Members will like to receive their earned money on stead if paying it back to the MLM company for their recharge.
  • Commissions MLM company or members receive on any recharge is only a little. So members will more likely to focus on recruiting members instead of doing recharge, which can lead to zero usability of the service.
  • Recharge APIs available in market may be not so reliable which can cause interruptions in the service, like not getting recharge even after paying money for recharge or getting less talk time than the amount paid, which will increase headaches for MLM company cause MLM company will have to solve this service issues otherwise it will lose trust from the members.
  • Unavailability of service due to some technical problem sometimes can be the reason of negativity in the members of the company, which can affect the main business of the company in bad way.

With all the Pros and Cons, any MLM company should think twice before starting to provide recharge service in your company or even integrating recharge API in your software. Hope this article will help you and you will take a decision which is good for your company.

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