NFT MLM business expands network with community-driven platform

Unfolding the challenges in NFT business model

A blockchain startup made an ambitious effort to fuse digital ownership with community-driven growth through a new multi-level marketing model. The company had Non-Fungible Token (NFT) packages for products and membership privileges for its community members. The company rewarded members for referrals, package purchases, repurchases and growing their network.

Operating with NFT in MLM brought in a mix of operational and technical challenges. Packaging NFTs as MLM products posed complexities in terms of royalty tracking, ownership transfers, and real-time value calculations. The business had a hierarchical structure of referrals and distributors. Each sale and repurchase of NFTs was tied to different commission rates to be paid to eligible members in different levels or ranks.

Traditional MLM businesses often require an email and password for registration. But handling NFT MLM had to authenticate users through crypto wallets like MetaMask. The platform had to manage rank advancements within the network based on criteria set or modified by the admin. The NFT MLM business required an automated system that can manage payouts and monitor team performance. Everything had to occur in real-time to maintain transparency and adaptability.

The advanced blend of NFT and MLM also demanded payout methods that are crypto-native and cost-effective to support stablecoin payments like Polygon. Developing such a platform was quite challenging and required more than just blockchain expertise. Their requirements included managing registration, smart contract execution and wallet-based payouts.

In addition to the feature requirements, the company based on decentralized model needed extra security, scalability and transparency.

Adding efficiency with innovation in NFT distribution

The NFT MLM company partnered with Epixel MLM Software to develop a globally accessible platform with strong compliance and performance tracking. A dedicated product development team was set up to design the features to improve the efficiency and growth of the NFT MLM business.

NFT MLM Software features to improve engagement and fuel network expansion

The NFT MLM platform was built with features to ensure proper management of NFT marketing and distribution.

User onboarding and registration

A simple and easy to follow registration process was developed with MetaMask wallet integration. In the platform, users can start the sign-up process by connecting their MetaMask wallets. This was taken as their digital identity. The system then creates a separate referral link for each user. This process eliminated the need for users to manage traditional usernames and passwords.

The users were able to complete the signup process with authentication and account linking done in minimal time. New members can join the network and connect with their sponsors instantly.

NFT sales and purchases

Direct purchase and repurchase of NFT packages was enabled through MetaMask to provide users quick and secure investment in digital assets. The process activated referral-based commissions through smart contracts instantly.

Automated rank calculation

The company intended to improve member engagement and performance through rank advancement. The process was optimized with an automated rank calculation process which auto-upgraded member ranks based on sales volume, referral activity, and other milestone achievements.

The gamified rank advancement feature was created to motivate members to work faster toward rank achievements. The platform analyzed all member activities like personal sales volume, team performance, and engagement. The ranks were calculated based on these factors and users were automatically assigned ranks such as "Starter," "Pro," or "Elite," each with its own set of bonuses and commissions.

Members can track their progress toward achieving the next rank, understand the qualifying criteria and plan their growth accordingly.

Member dashboards

Members of the NFT community needed a complete and real-time view of their earnings. The performance dashboards with customizable metrics gave users a holistic view of their current earnings, NF transactions, rank advancement progress and bonus milestones. They can set a goal tracking widget for rank advancements or sales to keep them self-motivated.

Commission calculations and processing

The requirement for an automated commission system was evident with increasing number of users and rank tiers. The system had to calculate commissions for different referral levels and rank tiers and distribute them with maximum accuracy in real time. Every transaction and activity from a referral or from the team had to be recorded and settled on-chain.

Direct bonuses, team matching bonuses, and royalty rewards were calculated and paid out without delay.

Payment processing

There was an immediate need for setting up an efficient payout system through USDT on the Polygon blockchain. The integration of MetaMask-based payouts helped the business bypass high fees and congestion associated with Ethereum. This ensured that members received their earnings at the right time without the need for withdrawal requests.

Front-end website

The company wanted to build its brand presence online with a front-end website that complements the blockchain backoffice. The website should educate visitors on compensation plans and introduce them to the NFT marketplace. The website will also provide login access to their accounts and referral dashboards.

The front-end website played an important part in building brand credibility and also acted as a 24/7 marketing and support tool for increasing user acquisition.

Loyalty and rewards program

In order to reduce user attrition and improve engagement in the NFT community, a loyalty program was implemented. The system assigned activities and members received daily and weekly bonuses for every activity completed. Special NFTs were assigned as premium rewards for members who showcase outstanding performance. The privileges for these members include access to personalized training, higher commissions, or community benefits. This established motivation and loyalty among the user base and helped the company build loyalty and reduce attrition within the NFT community.

Key business impacts with a community-driven platform

The platform consistently improved NFT sales through an efficient referral structure. An expected 86% of registered users remained active repurchasing NFTs and engaging with rank and rewards system. The NFT community expanded across multiple countries with highest adoption seen in the US. The system feedback from the NFT community voted ease of use, transparent commission system, and highly motivating reward features the highest.

Improved member onboarding process aimed at reducing member drop-offs by 40% and an estimated 65% increase in new member registrations.

MetaMask-integrated transactions enhanced the success rate of transactions by an expected 88%.

Automated commission payout process improved member trust and reduced payout-related disputes by 63%. The payout completion time was also set to improve by 90%.

Rank advancement feature motivated the members to advance quickly to the next rank. This improved rank advancement rates by an expected 48%.

Web-3 optimized architecture imparted extended scalability and uninterrupted performance with an estimated 99.9% system uptime.

Key business impacts with a community-driven platform

Overcoming the critical obstacles to growth

The product development and implementation process had a lot of challenges that could have interrupted the operations of the NFT MLM business. But our approach to implementation and system adoption ensured that the business never suffered any disruption in its operations.

Onboarding users in a Web3 environment

Users who are unfamiliar with blockchain struggled with wallet setups, smart contract interactions, and token handling which resulted in high drop-off rates during registration.

Simple to follow, step-by-step onboarding process was developed which helped users with less technical knowledge to register and initiate transactions easily.

Inconvenience in NFT package handling and repurchase

The absence of an automated NFT purchase and repurchase process created delays and poor user experience.

Automated smart contracts efficiently handled the NFT transactions and allowed users to purchase and repurchase NFTs in a single click. The automated backoffice ensured real-time ownership validation and package tracking on the blockchain.

Inconsistencies and delays in rank calculation

The company had employed a manual and semi-automated rank calculation process that delayed the process and impacted user motivation.

Advanced rank management system tracked member performance and updated ranks based on preconfigured rank criteria. Transparent analysis and automatic promotion established trust among members.

Inefficient commission management

The commission system lacked accuracy and accountability. Delays and inconsistencies increased the number of support tickets and disputes.

The commission management system built on automated smart contracts recorded every transaction for members and admins to verify if needed. Members could view their earnings and download reports for added transparency and trust in the system.

Costly payout processing

Manual payouts cost time and resources. Adding to the complexity the process was error-prone with high transaction fees for international payments.

The integrated payout system with MetaMask and Polygon enabled low cost USDT transfers directly to the users’ wallets. This reduced the costs and improved the payout speed.

Expected Results

Increase in active user count

86%

Reduction in member drop-offs

40%

Increase in new member registrations

65%

Improvement in transaction success rates

88%

Reduction in payout-related support tickets

63%

Improvement in payout completion time

90%

improvement in rank advancement rates

48%

Improvement in system uptime

99.9%