Social media platforms have an important role in changing the way we live ( https://www.apa.org/members/content/social-media-research ). For many years it has been part of our daily lives as it allows us to connect with friends and loved ones. However, lately, the attitude of people towards social media platforms is changing. Social media platforms are scrutinized now more than ever. The major reason for this backlash is that more people are getting involved in social media and it is also impacting our daily lives. As a result of this backlash, major platforms have made phenomenal changes in their guidelines. The latest on the list is the young and growing platform TikTok.
TikTok has a user base of around 800 million. At the end of 2020, TikTok made major updates in its guidelines. One update that caught everyone's attention was their take on MLM. Along with banning Ponzi and pyramid schemes, TikTok also banned the upload of MLM contents ( https://www.tiktok.com/community-guidelines ).
MLM or network marketing ( https://en.wikipedia.org/wiki/Multi-level_marketing )is a type of business model where products and services are sold directly to consumers. This legit business model has been around since the 18th century. With the advancement of technology, the distributors of MLM companies started to find their customers through social media. This window of opportunity has been exploited by many fake MLM companies by spreading false claims and misleading information to lure more people to their business. By this ban, influencers spreading false claims have lost their space. Thus MLM companies who sell their products and services lawfully can now flourish their business. Read more from the blog https://www.epixelmlmsoftware.com/industry-news/tiktok-bans-pyramid-ponzi-mlm-schemes
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What is so complex about the MLM industry? Obviously, the answer is network expansion and commission calculation. To expand your network you need distributors who are competent and creative in developing their own marketing strategies. Well enough, what does it take to simplify the commission calculation process in MLM? It’s a hard but true fact that it cannot be done manually. Manual processes are tiring and highly error-prone. The perfect way out is to automate it with technology.
