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Ask HN: Are you are marketing expert? Do you know what fractal-marketing is?
After some research, I have improved (theoretically) the "pyramids pitfall" of the multilevel-marketing business model, adding a blockchain layer with Smart Contracts to it.
I wanted to name this kind of business model as fractal-marketing because thanks to Smartcontracts, an important fraction of the ownership of the product could be projected from the top (of the tree) to the members in the down-line. Avoid sending a huge percentage of the profit from all the structure to a short number of participants on the top, might permit the distribution of more resources to the down line thanks to the limitation programmed in the Smart-contract. I think this tweak is enough to close the argument "multilevel-marketing is a pyramid because the top of the structure will have always vantage in front new arrival".
Displace resources to the down-line could change the perception of ownership of the product, especially if we use also the Smart contracts to fund, in a transparent way, the several departments involved in the development of the product.
I have thought of this kind of marketing for a specific product. A product that can be personalized by each seller in the structure of the organization. So is intended that beneath the layer of personalization given from each member, all members can take advantage of the improvements given from the developers to the product.
This form of business and cash-flow reminded me of a fractal and that why I was about to "coin" the definition of fractal-marketing. But after a short research, I've found this https://warrendouglas.com/blog/premium-pov/fractal-marketing, but this is the only reference about what fractal-marketing is that I found. And that is very different from my business model because the creator of the campaign don't share any profit with people who help to perpetuate the propagation of the product (worse than marketing-multilevel from my outlook).
Have you heard about the concept of fractal marketing before?
- sigmaprimus 6y agoPart of the appeal of a pyramid of multi level marketing scheme is the perception of simplicity. It does not require a CS degree to grasp the concept. I hope your idea works out for You and the product You are planning on marketing but I found it difficult to understand from your description. I'm probably way off but my first thought was that You have come up with a "Block" chain letter.
- AbraxasCcs 6y agoHi sigmaprimus, Thank you for your feedback. I didn't get if you are responding as a marketing expert. My struggles at the moment are trying to take far away from my business from the multi-level business model which I hate for many reasons, mainly because it's associated with Ponzi schemes. The law is clear about when an activity is a multi-level business rather than a Ponzi Scheme, "an activity might operate with a multi-level structure when the source of commissions paid to its affiliates come from the selling of products or service/s. If the flow of commissions is derived from an admission charge (to enter as a member of the structure) we are in front of a Ponzi Scheme. Is interesting to know that Amway and similar multi-level marketing business bypass this subtle difference between charging for a service or a product and an admission fee selling information to its affiliates. For me that is a despicable fact; I can conceive the selling of information in the era of information. But it another relative point of view. In any case, in interesting to understand your arguments or feeling about the business model I'm going to start to apply. People don't need a CS degree to understand the power of exponential algorithms, but also for C Scientists is hard to understand why exponential growth (based on multi-level marketing) is not a bad thing itself. In any case, in interesting to understand your arguments or feeling about the business model I'm going to start to apply. People don't need a CS degree to understand the power of exponential algorithms, but also for C Scientists is hard to understand why exponential growth (based on multi-level marketing) is not a bad thing itself. If you are interested to see the number behind of the product I want to offer might present it to you without interest to close a sell with you. As I said before I'm interested in your argument and feeling because I want to understand how to prove that this common misconception is a just biased clichè.
- sigmaprimus 6y agoInteresting enough I'm listening to a podcast right now that might be right up your alley. http://www.survivalpodcast.net/audio/2020/12-20/epi-2789-manufacture-rep-biz-model.mp3 http://www.survivalpodcast.net/audio/2020/12-20/epi-2789-man... I am by no means an expert, my experience comes from more of a distibutor/commission based drop shipping position, where I managed to do well. I am now developing a farm with a direct marketing model.