WO2023288134A1 - A system and method for merging a two or more multi-level marketing system into a matrix multi-level marketing system - Google Patents

Abstract

Disclosed herein is a system and method to any two or more MLMs to be merged into a matrix MLM system despite having different commission structures. Each member of the original MLMs is able to maintain their existing downlines without any changes. Further the existing MLM members have full access to the multi-line MLM commission structure, for example, a member of a binary MLM may now add a 3rd, 4th, 5th, etc. line if they choose. The multiline commission plan will be different than the commission plans from any of the original MLMs but this change should not affect the income of a large portion of users, and users that are affected by the changeover can be compensated or made whole on an individual level. In addition to this multiline commission plan, the commission structure of the original MLMs has been broken into several separate 'types' which together form an MLM system. These 'types' include the income received from downline commission based on position and the income received based on enrolling a member in the MLM, also known as sponsorship. The multiline MLM can then be converted into a matrix MLM by assigning the highest number of lines among all members as the maximum width, or total number of allowed lines, for all users, and setting the longest line in the commission tree as the maximum depth, or total number of levels of influence that pays commission, for all users. This way the new merged MLM has a consistent maximum width and depth and thus a straightforward and unchanging commission plan can be crafted so that members do not have to worry about how a multiline MLM commission plan works.

Description

A SYSTEM AND METHOD FOR MERGING A TWO OR MORE MULTI-LEVEL

MARKETING SYSTEM INTO A MATRIX MULTI-LEVEL MARKETING SYSTEM

CROSS-REFERENCE TO RELATED APPLICATION [0001] The present application claims the priority benefit of U.S. provisional application number 63/222,800 filed July 16, 2021, the disclosure of which is incorporated herein by reference.

FIELD OF THE DISCLOSURE

[0002] The present disclosure is generally related to merging multi-level marketing systems.

BACKGROUND

[0003] MLM companies are defined by a commission structure that is multi-level, such that a commission is payed to at least one member above the member who made a sale or purchase. However, there are multiple kinds of commission structures, for example, binary, matrix, or Unilevel. The problem is that merging these companies while maintaining the integrity of the existing commission tree has been unsuccessful when the two companies do not have the same kind of commission structure. Usually when companies with a different commission structure do merge, the two commission trees are simply kept separate and retain their traits and commission rates. Therefore, members of a binary commission structure are typically compelled to continue to build that structure even if other members of the now merged company are Unilevel. If the merged company does decide to attempt to merge the commission trees, it often ends with members feeling disoriented by changes in position and can bring sudden changes in what was steady income which is very upsetting to members when the change results in a loss of income. ^Currently, merging different MLMs can only be done by merging them into a multiline MLM, which may not be the preferred MLM structure for either the members or the executives of the newly created Merged MLM. There is a need for existing MLM companies to merge without having to either continue to keep the companies separate or upset members by rearranging the existing commission structures.

DESCRIPTIONS OF THE DRAWINGS

[0004] FIG. 1: Illustrates a Multi-Level Marketing Merger System.

[0005] FIG. 2: Illustrates a Multiline MLM Multiline User Database. [0006] FIG. 3: Illustrates a Multiline MLM Sales Database.

[0007] FIG. 4: Illustrates a Multiline MLM Commission Module.

[0008] FIG. 5: Illustrates a Multiline MLM Commission Rules Database. [0009] FIG. 6: Illustrates a Multiline MLM Commission Database.

[0010] FIG. 7: Illustrates a Multiline MLM Additional Line Module. [0011] FIG. 8: Illustrates a Multiline MLM Merger Module.

[0012] FIG. 9: Illustrates a Unilevel MLM Unilevel Base Module.

[0013] FIG. 10: Illustrates a Unilevel MLM Unilevel User Database. [0014] FIG. 11: Illustrates a Matrix MLM Matrix Base Module.

[0015] FIG. 12: Illustrates a Matrix MLM Matrix User Database.

[0016] FIG. 13: Illustrates a Binary MLM Binary Base Module.

[0017] FIG. 14: Illustrates a Binary MLM Binary User Database.

[0018] FIG. 15: Illustrates a Merged MLM User Data Collection Module. [0019] FIG. 16: Illustrates a Merged MLM Merged User Database.

[0020] FIG. 17: Illustrates a Merged MLM Matrix Conversion Module. [0021] FIG. 18: Illustrates a Merged MLM Com. Rules Database.

DETAILED DESCRIPTION

[0022] This is a system for a Multi-Level Marketing Merger System. This system comprises of a 102 Multiline MLM which is a distribution organization characterized by a multi-level payment structure where in each user of the organization is a distributor and pays commission to the user or users above them in the organization's structure, and which allows users to have an infinite amount of lines, which are users below them paying commission, and the users below those users, and so on, in an embodiment these additional lines may only be added (for example) once the users initial lines meet a threshold volume or commission amount, at element 102. A 104 Multiline MLM Multiline User Database which contains information on user's position in the 102 Multiline MLM commission structure, who enrolled or sponsored the user in the 102 Multiline MLM, and how many lines the user is currently allowed, at element 104. A 106 Multiline MLM Sales Database which contains data on sales made by users, which is used by the 108 Multiline MLM Commission Module to pay commissions to other users, at element 106. A 108 Multiline MLM Commission Module which calculates commission based on new sales data in the 106 Multiline MLM Sales Database and stores that commission in the 112 Multiline MLM Commission Database, in some embodiments the 108 Multiline MLM Commission Module may also pay users directly, at element 108. A 110 Multiline MLM Commission Rules Database which stores commission rules which are used by the 108 Multiline MLM Commission Module to determine commissions, at element 110. A 112 Multiline MLM Commission Database which stores commissions calculated by the 108 Multiline MLM Commission Module which are then used by the 114 Multiline MLM Additional Line Module to determine if the user qualifies for an additional line, in some embodiments this data may be used by another module to pay commissions to users, at element 112. A 114 Multiline MLM Additional Line Module which determines if the user has met the threshold commission value on their existing lines based on data from the 112 Multiline MLM Commission Database and if so adds an additional line to the number of lines that user is allowed, at element 114. A 116 Multiline MLM Merger Module which receives data from the 124 Unilevel MLM Unilevel User Database via the 122 Unilevel MLM Unilevel Base Module, 130 MLM Matrix User Database via the 128 Matrix MLM Matrix Base Module, and 136 Binary MLM Binary User Database via the 134 Binary MLM Binary Base Module, makes sure the data contains the relevant metrics, and sends the data to the 140 Merged MLM User Data Collection Module, at element 116. The 118 Cloud or communication network may be a wired and/or a wireless network. The communication network, if wireless, may be implemented using communication techniques such as Visible Light Communication (VLC), Worldwide Interoperability for Microwave Access (WiMAX), Long Term Evolution (LTE), Wireless Local Area Network (WLAN), Infrared (IR) communication, Public Switched Telephone Network (PSTN), Radio waves, and other communication techniques known in the art. The communication network may allow ubiquitous access to shared pools of configurable system resources and higher-level services that can be rapidly provisioned with minimal management effort, often over Internet and relies on sharing of resources to achieve coherence and economies of scale, like a public utility, while third-party 118 Clouds enable organizations to focus on their core businesses instead of expending resources on computer infrastructure and maintenance, at element 118. A number of 120 Unilevel MLMs which are distribution organizations characterized by a multi-level payment structure where in each user of the organization is a distributor and pays commission to the user or users above them in the organization's structure, and which allows users to have an infinite amount of lines, which are users below them paying commission, and the users below those users, etc. until a certain depth of users is reached, for example if user 1 is above user 2, who is above user 3, who is above user 4, who is above user 5, etc. then users 2,3, and 4 may pay commissions to user 1, but users 5, 6, 7, etc. do not pay commissions to user 1, at element 120. A 122 Unilevel MLM Unilevel Base Module which extracts data from the 124 Unilevel MLM Unilevel User Database and sends that data to the 116 Multiline MLM Merger Module to be stored in the 104 Multiline MLM Multiline User Database, at element 122. A 124 Unilevel MLM Unilevel User Database which contains information on user's position in the 120 Unilevel MLM commission structure, who enrolled or sponsored the user in the 120 Unilevel MLM, and how many lines the user currently has, at element 124. A number of 126 Matrix MLMs which are distribution organizations characterized by a multi-level payment structure where in each user of the organization is a distributor and pays commission to the user or users above them in the organization's structure, and which allows users to have an fixed amount of lines, which are users below them paying commission, and the users below those users, etc. until a certain depth of users is reached, for example if user 1 is above user 2, who is above user 3, who is above user 4, who is above user 5, etc. then users 2,3, and 4 may pay commissions to user 1, but users 5, 6, 7, etc. do not pay commissions to user 1, and user 1 may only have a limited number of users directly below them, for example, 5, at element 126. A 128 Matrix MLM Matrix Base Module which extracts data from the 130 Matrix MLM Matrix User Database and sends that data to the 116 Multiline MLM Merger Module to be stored in the 104 Multiline MLM Multiline User Database, at element 128. A 130 Matrix MLM Matrix User Database which contains information on user's position in the 126 Matrix MLM commission structure, who enrolled or sponsored the user in the 126 Matrix MLM, and how many lines the user currently has, at element 130. A number of 132 Binary MLMs which are distribution organizations characterized by a multi-level payment structure where in each user of the organization is a distributor and pays commission to the user or users above them in the organization's structure, and which allows users to have only 2 lines (for example), which are users below them paying commission, and the users below those users, etc. for an unlimited amount of depth, at element 132. A 134 Binary MLM Binary Base Module which extracts data from the 136 Binary MLM Binary User Database and sends that data to the 116 Multiline MLM Merger Module to be stored in the 104 Multiline MLM Multiline User Database, at element 134. A 136 Binary MLM Binary User Database which contains information on user's position in the 132 Binary MLM commission structure, who enrolled or sponsored the user in the 132 Binary MLM, at element 136. A 138 Merged MLM which is a new entity created from the merger of at least two MLMs with different structures, for example a the merger of a 120 Unilevel MLM and a 132 Binary MLM, a 120 Unilevel MLM, 126 Matrix MLM, and 132 Binary MLM, or 15126 Matrix MLMs and one 132 Binary MLM, the 138 Merged MLM receives data from the 102 Multiline MLM in order to create an organizational structure that includes the members of the MLMs that have been merged, in some embodiments the 138 Merged MLM may not exist at the same time as some of the other components of this system, in which case the data on users may be temporarily or permanently stored in a database by the 102 Multiline MLM, in some embodiments the 138 Merged MLM may be the same legal entity as one of the MLMs being merged, for example a 132 Binary MLM may acquire a 120 Unilevel MLM and convert to a multiline structure in order to absorb the members of the 120 Unilevel MLM, in which case the 132 Binary MLM and 138 Merged MLM are the same company or organization from a legal perspective, at element 138. A 140 Merged MLM User Data Collection Module which receives user data from the 116 Multiline MLM Merger Module, which is then stored in the 142 Merged MLM Merged User Database and contains data on users from the other MLMs that were merged to create the 138 Merged MLM, at element 140. A 142 Merged MLM Merged User Database which contains information on user's position in the 138 Merged MLM commission structure, who enrolled or sponsored the user in the 138 Merged MLM or one of the MLMs that was eventually merged into the 138 Merged MLM, and the number of lines that user is allowed under a multiline commission structure, at element 142. *A 144 Merged MLM Matrix Conversion Module which determines the maximum width of the commission tree, meaning the most number of lines available to a user in the 142 Merged MLM Merged User Database, and the Maximum depth of the deepest line, meaning the most levels of influence difference from the first user to the last, and sets those two values as the maximum width and depth for all users in the 138 Merged MLM, creating a matrix MLM commission structure, at element 144. *A 146 Merged MLM Com. Rules Database which stores commission rules which may be used by another module or modules to determine commission, at element 146.

[0023] Functioning of the 104 Multiline MLM Multiline User Database" will now be explained with reference to FIG. 2. The 104 Multiline MLM Multiline User Database contains a user ID, for example, AB0001, information on user's position in the 102 Multiline MLM commission structure, for example the user ID of the user above them in the commission structure, for example, FH1234, who enrolled or sponsored the user in the 102 Multiline MLM, for example, user ID TT9876, and how many lines the user is currently allowed, for example, 7, users are assigned a default number of lines when they join the 102 Multiline MLM, users that were merged from another MLM, for example, the 120 Unilevel MLM will come into the 102 Multiline MLM with at least the number of lines they had under their old MLM structure, in an embodiment the default number of lines is 4, figure 2B shows a possible commission structure based on the data in figure 2A, wherein the straight lines indicate an upline/downline relationship between two users and a curved, arrowed line indicates that the user the arrow points to was sponsored by the user the line originates from, more lines and users may exist than are shown, element 200. [0024] Functioning of the 106 Multiline MLM Sales Database will now be explained with reference to FIG. 3. The 106 Multiline MLM Sales Database contains data on sales made by users, which includes a user ID, for example, AB0001, a sale value, for example, $432.10, and a transaction date, for example, 1/7/2020, which is used by the 108 Multiline MLM Commission Module to pay commissions to other users, in some embodiments the database may include more sales data such as the seller's ID if applicable, item IDs of the items sold, volume sold, payment method and data, etc., element 300.

[0025] Functioning of the 108 Multiline MLM Commission Module will now be explained with reference to FIG. 4. The process begins with the 108 Multiline MLM Commission Module polling for a new data entry in the 106 Multiline MLM Sales Database, for example, when a sale is made by a user, at step 400. The 108 Multiline MLM Commission Module extracts the new data entry from the 106 Multiline MLM Sales Database which includes at least a user ID, sales value, and date, at step 402. The 108 Multiline MLM Commission Module searches for a User ID in the 104 Multiline MLM Multiline User Database that matches the user ID extracted from the 106 Multiline MLM Sales Database, for example if the extracted user ID had a value of "AB0001" then the 108 Multiline MLM Commission Module will search the 104 Multiline MLM Multiline User Database for a value of "AB0001" in the "User ID" category, at step 404. The 108 Multiline MLM Commission Module selects the entry in the 104 Multiline MLM Multiline User Database with a matching user ID value, at step 406. The 108 Multiline MLM Commission Module determines if the user has a sponsor by checking the entry for a value in the "Sponsor User ID" category, if there is no value, or the value does not correspond to a user ID then the 108 Multiline MLM Commission Module will skip to step 416, at step 408. If there is a value that corresponds to a user ID in the "Sponsor User ID" category, the 108 Multiline MLM Commission Module extracts the commission rule from the 110 Multiline MLM Commission Rule Database for sponsor users, at step 410. The 108 Multiline MLM Commission Module applies the extracted commission rule to the sales value extracted from the 106 Multiline MLM Sales Database, for example if the rule is 10% commission for sponsors and the sales value is $300, then $300 will be multiplied by 10% to get $30 which is the commission payable to the sponsor, in an embodiment the sponsor may be paid directly by the 108 Multiline MLM Commission Module after this step, at step 412. The 108 Multiline MLM Commission Module stores the resulting commission in the 112 Multiline MLM Commission Database along with the user ID of the sponsoring user to be paid, the user ID of the sponsored user, the commission type, in this case sponsor, and the date extracted from the 106 Multiline MLM Sales Database, in some embodiments the date may be changed to reflect a delay in the processing of the commission or payment of the commission, at step 414. The 108 Multiline MLM Commission Module determines if the user has an upline user by checking the entry for a value in the "Upline User ID" category, if there is no value, or the value does not correspond to a user ID then the 108 Multiline MLM Commission Module will return to polling for a new data entry in the 106 Multiline MLM Sales Database, at step 416. If there is a value that corresponds to a user ID in the "Upline User ID" category, the 108 Multiline MLM Commission Module extracts the commission rule from the 110 Multiline MLM Commission Rule Database for upline users, at step 418. The 108 Multiline MLM Commission Module applies the extracted commission rule to the sales value extracted from the 106 Multiline MLM Sales Database, for example if the rule is 10% commission for upline users and the sales value is $300, then $300 will be multiplied by 10% to get $30 which is the commission payable to the upline user, in some embodiments users may receive a different commission based on how many levels upline they are from the user who made the sale, for example, the upline user of the upline user may earn 5% commission, and next upline user may earn 1% commission, in an embodiment the upline user may be paid directly by the 108 Multiline MLM Commission Module after this step, at step 420. The 108 Multiline MLM Commission Module stores the resulting commission in the 112 Multiline MLM Commission Database along with the user ID of the upline user to be paid, the user ID of the downline user, the commission type, in this case upline, and the date extracted from the 106 Multiline MLM Sales Database, in some embodiments the date may be changed to reflect a delay in the processing of the commission or payment of the commission, at step 422. The 108 Multiline MLM Commission Module then searches the 104 Multiline MLM Multiline User Database for an entry where the user ID in the "User ID" category matches the user ID in the "Upline User ID" category of the currently selected entry at step 424. The 108 Multiline MLM Commission Module selects the entry with the matching user ID value as the new selected entry and returns to step 408, at step 426. [0026] Functioning of the 110 Multiline MLM Commission Rules Database will now be explained with reference to FIG. 5. The 110 Multiline MLM Commission Rules Database contains commission rules which are used by the 108 Multiline MLM Commission Module to determine commissions, commission rules can be complex or simple but will often involve a mathematical calculation, for example, a rule may dictate that commissions for upline users are 10% of the sales value, divided by two for each level above the selling user, meaning that for a $100 dollar sale the upline user will receive $10 the user above them, or 2nd level of influence from the user who made the sale, will receive $5, the user above them will receive $2.50, etc., in another example the rule may dictate that the commission for sponsors is 15% of the sale but only if the sale is over $500 (for example), otherwise no commission is paid, the database also contains the type of rule, for example, "Sponsor" which indicates that the rule should be used to calculate commissions for sponsors, in some embodiments multiple rules may exist for one rule type, for example, one rule may apply to sponsors that are also somewhere upline of the user who made the sale, while a different sponsor rule may apply if the sponsor is cross-line, meaning they are not anywhere upline of the user who made the sale, element 500.

[0027] Functioning of the Multiline MLM Commission Database will now be explained with reference to FIG. 6. The 112 Multiline MLM Commission Database contains commissions calculated by the 108 Multiline MLM Commission Module which are then used by the 114 Multiline MLM Additional Line Module to determine if the user qualifies for an additional line, in some embodiments this data may be used by another module to pay commissions to users, which comprises at least a user ID, for example, AB0001, a commission value, for example, $30, the type of commission, for example, downline, the user ID of the user the commission came from, for example, NM6677, and a date, for example, 9/18/2020, if the commission came from a sale made somewhere in a user's downline then the commission will be considered to come from the immediately downline user, in other embodiments the commission may be recorded as coming from the selling user, element 600.

[0028] Functioning of the Multiline MLM Additional Line Module will now be explained with reference to FIG. 7. The process begins with the 114 Multiline MLM Additional Line Module polling for a new data entry in the 112 Multiline MLM Commission Database, at step 700. The 114 Multiline MLM Additional Line Module extracts the user ID from the User ID category in the new data entry, for example, AB0001, at step 702. The 114 Multiline MLM Additional Line Module searches the 112 Multiline MLM Commission Database for all entries that also have the extracted user ID in the User ID category, which is data on all the commissions that have been paid to that user, at step 704. The 114 Multiline MLM Additional Line Module selects all the matching entries that also have "upline" in the Commission Type category, at step 706. The 114 Multiline MLM Additional Line Module extracts all the user IDs in the Commission Source User ID category of the entries, ignoring repeats, each of these user IDs corresponds to a user that is directly downline of the user who's user ID was extracted from the new data entry, and therefore each correspond to a line, in some embodiments, lines that have not yet made sales may be accounted for by creating a null or nominal commission upon creation, for example, if user AB0001 places user CD0002 in their immediate downline a record may be recorded in the 112 Multiline MLM Commission Database for $0.01 or $0.00 so that CD0002 is recognized as the start of one of ABOOOl's downlines, at step 708. The 114 Multiline MLM Additional Line Module selects the first of the extracted Commission Source User IDs, first may be determined by, for example, alphabetical order or most recent commission, at step 710. The 114 Multiline MLM Additional Line Module searches the entries selected in step 706 for all entries that match the commission source user ID selected in the Commission Source User ID category, which will find all the entries that correspond to commissions made by a single line, at step 712. The 114 Multiline MLM Additional Line Module extracts the commission value in the Commission Value Category for each matching entry, in some embodiments the commissions are further filtered by a time frame, for example, only commission values from commissions made in the last month will be extracted, at step 714. The 114 Multiline MLM Additional Line Module totals the extracted commission values by adding them all together to get the total commission from that line, at step 716. The 114 Multiline MLM Additional Line Module determines if the total commission calculated meets a threshold value, the threshold value is a value that all lines meet before a user is allowed to have a new line, for example if the user has 7 lines, each line has made over $1000 in commission, and the threshold value is $1000 then the user will be allowed to create and 8th line, the threshold value can be fixed or variable, in an embodiments the threshold value is stored in a database and retrieved by the 114 Multiline MLM Additional Line Module, if the total commission calculated fails to meet the threshold value then the user cannot receive a new line because all lines meet the threshold value and the 114 Multiline MLM Additional Line Module will return to polling for a new data entry in the 112 Multiline MLM Commission Database, at step 718. If the total commission calculated meets the threshold value, the 114 Multiline MLM Additional Line Module determines if there is another commission source user ID that was extracted in step 708, at step 720. If there is another commission source user ID, the 114 Multiline MLM Additional Line Module selects the next commission source user ID and returns to step 712, at step 722. If there is not another commission source user ID, the 114 Multiline MLM Additional Line Module searches the 104 Multiline MLM Multiline User Database for an entry that matches the user ID extracted from the new entry in step 702 in the User ID category, at step 724. The 114 Multiline MLM Additional Line Module increments the number in the Available Lines category of the matching entry by 1, which allows the user to create one additional line, in some embodiments the number in the Available Lines category of the matching entry may be changed in another way, for example, increased by 2, multiplied by 1.2 and rounded to the nearest whole number, squared, etc., at step 726.

[0029] Functioning of the 116 Multiline MLM Merger Module will now be explained with reference to FIG. 8. The process begins with *the 116 Multiline MLM Merger Module polling for data from the 122 Unilevel MLM Unilevel Base Module, 128 Matrix MLM Matrix Base Module, or 134 Binary MLM Binary Base Module. This data is extracted by the Base Module of each type of MLM from the respective database of user data, at step 800. *The 116 Multiline MLM Merger Module receives data from the 122 Unilevel MLM Unilevel Base Module, 128 Matrix MLM Matrix Base Module, or 134 Binary MLM Binary Base Module which includes a user ID, for example, AB0001, information on user's position in the 102 Multiline MLM commission structure via the user ID of the user above them in the commission structure, for example, FH1234, who enrolled or sponsored the user in the 102 Multiline MLM, for example, user ID TT9876, and how many lines the user currently has in the 120 Unilevel MLM, for example, 7, in some embodiments where the number of lines is restricted then he number of lines may not be included with each user but sent as one value, for example a 134 Binary MLM may be assumed to allow 2 lines for each user, and a 126 Matrix MLM may have a known maximum number of lines, for example 5, which is already accounted for by the system or sent to the 116 Multiline MLM Merger Module alongside the user data, at step 802. *The 116 Multiline MLM Merger Module sends the data to the 140 Merged MLM User Data Collection Module to be stored in the 142 Merged MLM Merged User Database, in an embodiment user data without a number of lines will be set to the default value, for example data from a 132 Binary MLM may not contain data for the amount of lines because all members of a 132 Binary MLM have 2 available lines, in which case the data will be amended to include the default number of lines that would be assigned to a new member of the 138 Merged MLM, in an embodiment if the number of lines a user has is less than the default value it will be set to the default value, in an embodiment the default value is 4 lines, at step 804.

[0030] Functioning of the Unilevel MLM Unilevel Base Module will now be explained with reference to FIG. 9. The process begins with the 122 Unilevel MLM Unilevel Base Module extracts all the data stored in the 124 Unilevel MLM Unilevel User Database, at step 900. The 122 Unilevel MLM Unilevel Base Module connects with the 116 Multiline MLM Merger Module through the 118 Cloud or Internet, via a physical connection, or by any other method of transferring data, at step 902. The 122 Unilevel MLM Unilevel Base Module sends the data extracted from the 124 Unilevel MLM Unilevel User Database to the 116 Multiline MLM Merger Module, at step 904. [0031] Functioning of the 124 Unilevel MLM Unilevel User Database will now be explained with reference to FIG.10. The 124 Unilevel MLM Unilevel User Database contains information on user's position in the 120 Unilevel MLM commission structure, who enrolled or sponsored the user in the 120 Unilevel MLM, and how many lines the user currently has, which includes a user ID, for example, UL002, information on user's position in the 102 Multiline MLM commission structure, for example the user ID of the user above them in the commission structure, for example, UL001, who enrolled or sponsored the user in the 102 Multiline MLM, for example, user ID UL009, and how many lines the user currently has within the existing 120 Unilevel MLM, for example, 7, figure 10B shows a possible commission structure based on the data in figure 10A, wherein the straight lines indicate an upline/downline relationship between two users and a curved, arrowed line indicates that the user the arrow points to was sponsored by the user the line originates from, and the dotted straight line indicates the two users have an indirect upline/downline relationship, meaning there are more users in the line that are not shown, more lines and users may exist than are shown, element 1000.

[0032] Functioning of the 128 Matrix MLM Matrix Base Module will now be explained with reference to FIG. 11. The process begins with the 128 Matrix MLM Matrix Base Module extracts all the data stored in the 130 Matrix MLM Matrix User Database, at step 1100. The 128 Matrix MLM Matrix Base Module connects with the 116 Multiline MLM Merger Module through the 118 Cloud or Internet, via a physical connection, or by any other method of transferring data, at step 1102. The 128 Matrix MLM Matrix Base Module sends the data extracted from the 130 Matrix MLM Matrix User Database to the 116 Multiline MLM Merger Module, at step 1104.

[0033] Functioning of the 130 Matrix MLM Matrix User Database will now be explained with reference to FIG. 12. The 130 Matrix MLM Matrix User Database contains information on user's position in the 126 Matrix MLM commission structure, who enrolled or sponsored the user in the 126 Matrix MLM, and how many lines the user currently has, which includes a user ID, for example, AB0001, information on user's position in the 102 Multiline MLM commission structure, for example the user ID of the user above them in the commission structure, for example, FH1234, who enrolled or sponsored the user in the 102 Multiline MLM, for example, user ID TT9876, and how many lines the user currently has within the existing 126 Matrix MLM, for example, 5, in an embodiment the number of lines a user currently has may not be necessary as all users under a 126 Matrix MLM can be assumed to have the maximum allowed for that structure, for example in a 126 Matrix MLM where the maximum amount of lines is 5, all users will be given a default 5 lines after being merged into the 102 Multiline MLM, figure 12B shows a possible commission structure based on the data in figure 12A, wherein the straight lines indicate an upline/downline relationship between two users and a curved, arrowed line indicates that the user the arrow points to was sponsored by the user the line originates from, and the dotted straight line indicates the two users have an indirect upline/downline relationship, meaning there are more users in the line that are not shown, more lines and users may exist than are shown, element 1200.

[0034] Functioning of the 134 Binary MLM Binary Base Module will now be explained with reference to FIG. 13. The process begins with the 134 Binary MLM Binary Base Module extracts all the data stored in the 136 Binary MLM Binary User Database, at step 1300. The 134 Binary MLM Binary Base Module connects with the 116 Multiline MLM Merger Module through the 118 Cloud or Internet, via a physical connection, or by any other method of transferring data, at step 1302. The 134 Binary MLM Binary Base Module sends the data extracted from the 136 Binary MLM Binary User Database to the 116 Multiline MLM Merger Module, at step 1304.

[0035] Functioning of the 136 Binary MLM Binary User Database will now be explained with reference to FIG. 14. The 136 Binary MLM Binary User Database contains information on user's position in the 132 Binary MLM commission structure, who enrolled or sponsored the user in the 132 Binary MLM, and how many lines the user currently has, which includes a user ID, for example, BN002, information on user's position in the 102 Multiline MLM commission structure, for example the user ID of the user above them in the commission structure, for example, BN001, who enrolled or sponsored the user in the 102 Multiline MLM, for example, user ID BN001, and how many lines the user currently has within the existing 132 Binary MLM, for example, 7, figure 14B shows a possible commission structure based on the data in figure 14A, wherein the straight lines indicate an upline/downline relationship between two users and a curved, arrowed line indicates that the user the arrow points to was sponsored by the user the line originates from, and the dotted straight line indicates the two users have an indirect upline/downline relationship, meaning there are more users in the line that are not shown, more lines and users may exist than are shown, element 1400.

[0036] Functioning of the 140 Merged MLM User Data Collection Module will now be explained with reference to FIG. 15. The process begins with the 140 Merged MLM User Data Collection Module polling for data from the 116 Multiline MLM Merger Module, at step 1500. The 140 Merged MLM User Data Collection Module receives data from the 116 Multiline MLM Merger Module, at step 1502. The 140 Merged MLM User Data Collection Module stores the received data in the 142 Merged MLM Merged User Database, at step 1504.

[0037] Functioning of the 142 Merged MLM Merged User Database will now be explained with reference to FIG. 16. *The 142 Merged MLM Merged User Database contains a user ID, for example, UL002, information on user's position in the 138 Merged MLM commission structure, for example the user ID of the user above them in the commission structure, for example, UL001, who enrolled or sponsored the user in the 138 Merged MLM or the original MLM that was merged into the 138 Merged MLM, for example, user ID UL001, and how many lines the user is currently allowed, for example, 7, users are assigned a default number of lines when they join the 138 Merged MLM, users that were merged from another MLM, for example, the 120 Unilevel MLM will come into the 138 Merged MLM with at least the number of lines they had under their old MLM structure, in an embodiment the default number of lines is 4, figure 16B shows a possible commission structure based on the data in figure 16A, wherein the straight lines indicate an upline/downline relationship between two users and a curved, arrowed line indicates that the user the arrow points to was sponsored by the user the line originates from, more lines and users may exist than are shown, figure 16C shows the 142 Merged MLM Merged User Database after being altered by the 144 Merged MLM Matrix Conversion Module, element 1600.

[0038] Functioning of the 144 Merged MLM Matrix Conversion Module will now be explained with reference to FIG. 17. The process begins with *the 144 Merged MLM Matrix Conversion Module being initiated by an administrator of the 138 Merged MLM, an administrator may be an executive, an employee, a module, or any other person or entity that had the authority to convert the 138 Merged MLM into a matrix MLM, at step 1700. *The 144 Merged MLM Matrix Conversion Module searches the 142 Merged MLM Merged User Database for the entry that has the greatest value in the "Available Lines" category, if more than one entry is tied for the greatest value it does not matter which one is selected, at step 1702. *The 144 Merged MLM Matrix Conversion Module extracts the value in the "Available Lines" category from the entry, in an embodiment this number may already be known by other means and steps 1702 and 1704 may be skipped, for example, if no 120 Unilevel MLM was merged to create the Merged MLM then the maximum number of available lines should be known at the time of merging, at step 1704. *The 144 Merged MLM Matrix Conversion Module sets the value for the "Available Lines" category for each entry in the 142 Merged MLM Merged User Database to the extracted value, for example, if the extracted value was 7, then all users will now be allowed up to 7 lines, in some embodiments this means that users will still be able to add more lines than allowed but will receive no commission from them, at step 1706. *The 144 Merged MLM Matrix Conversion Module creates a variable for line depth and greatest line depth, these variables will be used in the following steps to determine the depth of each individual line in the commission tree and which one runs deepest, meaning has the most levels of influence difference between the user at the beginning of the line and the user at the end, at creation these variables are each set to 0, at step 1708. *The 144 Merged MLM Matrix Conversion Module selects the first entry in the 142 Merged MLM Merged User Database, at step 1710. *The 144 Merged MLM Matrix Conversion Module determines if there is an upline user ID by checking if there is a value in the "Upline User ID" category of the entry, no value means there is no upline user, in some embodiments the "Upline User ID" may contain a value that is symbolic of the top of the line, for example, "Null" or "No Upline User" which the 144 Merged MLM Matrix Conversion Module will also recognize as meaning there is no upline user, at step 1712. *If there is an upline user ID, the 144 Merged MLM Matrix Conversion Module increments the variable for line depth by 1, at step 1714. *The 144 Merged MLM Matrix Conversion Module searches the 142 Merged MLM Merged User Database for the entry that has a value in the "User ID" category that matches the value of the "Upline User ID" from the selected entry, at step 1716. *The 144 Merged MLM Matrix Conversion Module selects the matching entry and returns to step 1712, at step 1718. *If there is no upline user ID, the 144 Merged MLM Matrix Conversion Module determines if the variable for line depth is greater than the variable for the greatest line depth, at step 1720. *If the variable for line depth is greater than the variable for the greatest line depth, the 144 Merged MLM Matrix Conversion Module sets the variable for the greatest line depth to the value of the variable for line depth, this way each time a line is measured it is compared to the deepest line measured so far and if it is greater than it becomes the new deepest line measured so far, at step 1722. *The 144 Merged MLM Matrix Conversion Module resets the value of the variable for line depth to 0, at step 1724. *The 144 Merged MLM Matrix Conversion Module determines if there is another entry in the 142 Merged MLM Merged User Database that has not yet been selected, at step 1726. *If there is another entry in the 142 Merged MLM Merged Database that has not yet been selected, the 144 Merged MLM Matrix Conversion Module selects that entry and returns to step 1712, at step 1728. *If there is no other entry in the 142 Merged MLM Merged Database that has not yet been selected, the 144 Merged MLM Matrix Conversion Module searches the 146 Com. Rules Database for all commission rules with a value of "Upline" in the "Rule Type" category, at step 1730. *The 144 Merged MLM Matrix Conversion Module alters the upline rules so that they only pay out to a depth that matches the value of the variable for the greatest line depth, for example, if the commission rule is determines commission via the function: Commission = Sales Value *

20%/(2 * Level of Influence of Upline User to Selling User), and the variable for the greatest line depth has a value of 12, then the rule will be amended to: If Level of Influence of Upline User to Selling User <= 12 then Commission = Sales Value * 20%/(2 * Level of Influence of Upline User to Selling User), Else Commission =$ 0, which would effectively stop the distribution of commission after 12 levels of depth, at step 1732. *The 144 Merged MLM Matrix Conversion Module ends, at step 1734.

[0039] Functioning of the 146 Merged MLM Com. Rules Database will now be explained with reference to FIG. 18. *The 146 Merged MLM Com. Rules Database contains commission rules which are used another module or modules to determine commissions, commission rules can be complex or simple but will often involve a mathematical calculation, for example, a rule may dictate that commissions for upline users are 10% of the sales value, divided by two for each level above the selling user, meaning that for a $100 dollar sale the upline user will receive $10 the user above them, or 2nd level of influence from the user who made the sale, will receive $5, the user above them will receive $2.50, etc., in another example the rule may dictate that the commission for sponsors is 15% of the sale but only if the sale is over $500 (for example), otherwise no commission is paid, the database also contains the type of rule, for example, "Sponsor" which indicates that the rule should be used to calculate commissions for sponsors, in some embodiments multiple rules may exist for one rule type, for example, one rule may apply to sponsors that are also somewhere upline of the user who made the sale, while a different sponsor rule may apply if the sponsor is cross-line, meaning they are not anywhere upline of the user who made the sale, figure 18A shows an example of the 146 Merged MLM Com. Rules Database and figure 18B shows the same example after the upline commission rule has been altered by the 144 Merged MLM Matrix Conversion Module, element 1800.

[0040] The functions performed in the processes and methods may be implemented in differing order. Furthermore, the outlined steps and operations are only provided as examples, and some of the steps and operations may be optional, combined into fewer steps and operations, or expanded into additional steps and operations without detracting from the essence of the disclosed embodiments.

Claims

CLAIMS What is claimed is:

1. A method for merging at least two MLMs into a multiline MLM comprising:

• providing at least a first MLM with a first set of lines, and

• providing at least a second MLM with a second set of lines, and

• providing data for at least one member of each MLM which contains at least the member's position in the commission structure of the respective MLM, and

• allowing the data to be used to create a new merged MLM with a commission structure that includes at least one member of each MLM

• wherein the at least one member of each MLM maintains their downlines after being integrated into the merged MLM, and

• wherein the at least one member of each MLM may be allowed additional lines, and

• *wherein the new merged MLM is converted to a matrix commission structure.