Commercial Genealogy

1. Scope

The scope of this process is to display everything related to the genealogy and management of the network, how to track it, make adjustments to it, transfers, provide a more detailed view of the types of networks, visualize the network through the genealogy tree, and its levels of depth.

• Network Structure

• Types of Networks

• Network Tree Network Adjustments

• Network Calculation

• Network Monitoring

• Management Inquiry

• Segmentation Rules RFM

• Starter Kits

• Analysis and Reports

1.1. Software Coverage

• Genealogy

  • Network Structure

  • Types of Networks

    • Sponsorship

    • Sponsorship

    • Matrices

  • Network Tree

    • Structure

    • Level

    • Generations

    • Historical

  • Network Adjustments

    • Transfers

    • Compression

  • Network Calculation

• Monitoring and Management

  • Network Management

    • KPI (Key Performance Indicators)

    • Network Tree

    • Key Information

  • Viewer Centralized Query

• Segmentation

  • RFM (Recency, Frequency, Monetary)

  • Starter Kits

  • Rules

  • VIP

  • Incentive Groups

• Analysis

  • Dynamic Dashboards Reports

2. Definitions

It is essential to understand the main functionalities that the system offers in order to manage consultants and all individuals within the network effectively. Initially, it's of great value to identify the different terms used in the system to gain a better understanding of their purpose and operation.

What is the Network Tree? The Network Tree displays the individuals who belong to the consultant's hierarchy at different levels. Additionally, it allows for visualizing all necessary information related to management.

What is a Sponsor? A Sponsor is the leader or sponsor of a consultant network and is responsible for ensuring the development of their team's work.

What is a Referrer? The Referrer is the person who brought or referred another person to be part of a network.

How is placement in the network managed? Placement in the network refers to the level at which a person is within the company's genealogy. It indicates at what level I am and who is above me. The head of the network is at level zero, and other individuals are in subsequent or lower levels.

What is Segmentation? Segmentation allows the classification of the network into smaller sub-networks. Segmentation can be assigned through rules, and these will be visualized in different reports.

What are Ranks? Ranks are classifications given to consultants. They can increase in level or change based on the performance they have within the company.

What is Compression? The term Compression refers to when an inactive person within a network is compressed, and their descendants are placed in the same position where they were (updating the network structure).

What is RFM (Recency, Frequency, Monetary)? RFM is an analysis that helps determine the best customers or consultants based on when they made their last purchase, how frequently they make purchases, and how much they spend. This analysis leads to a classification based on this performance.

3. Highlighted features

• Hierarchy control of genealogy through the network tree: The network tree enables management of various components within the network, including structure visualization, personal information, monetary transactions, etc.

• Network updates: Maintain the current state of the network through transfers or network compression and perform network calculations to keep commissions and information up to date.

• Access and monitoring via centralized query: Manage information by searching for individuals, tracking orders, monitoring performance (KPIs), etc.

• Diverse network monitoring modes and KPIs: Different methods are available to monitor the network and its relevant information, such as performance indicators in the business context.

• Various segmentation methods for the network: The network can be classified based on performance or progress in sales or as defined by the company. Different methods or strategies can be applied based on this segmentation.

4. Conditions

For the proper utilization of the software functionalities, it's essential to have the following technical and/or business elements defined beforehand:

• Network Structure and Management Definition: Establish the network model used in the system and all related structures.

• Consultants' Objectives and Functional Scope: Based on the business model, define the types of actions consultants can perform and the functionalities they can access.

• Scope of the Career Plan: Define how consultants will be classified and what the goal of the roadmap is according to the planned scope.

• Network Adjustment Flow Model: Determine the flowchart of processes to execute necessary network adjustments according to the scope.

• Criteria for Network Compression: Based on the business model, establish the conditions or validations to consider for network compression.

• Model for Applying Rules for Network Segmentation: Define the application of rules to segment the network (as applicable according to the business model).

5. Functioning of the Software

5.1. Journey

David from the sales department is responsible for managing individuals who are part of the company. Once they have gone through the registration process, after a certain period of time, David needs to know:

Network structure Who the main consultants (sponsors) are Composition of the network for this, David can manage the network tree, which contains all this information and relevant personal data related to specific topics such as invoices, incentives, indicators. He can also administer the network and make adjustments to it.

Adjustments to the network After internal management of these aspects, David realizes that he can make adjustments to the network based on permissions granted by the company. These adjustments might involve:

• Transferring consultants or himself to different geographical zones.

• Transferring within the network. To reflect these changes, it's recommended that David recalculates the network to update all this information.

Monitoring David has various ways to monitor the network, including:

• Monitoring sales within specific time periods.

• Tracking bonuses and incentives.

Segmentation Moreover, the company recognizes the importance of network segmentation to identify the level of activity and performance in sales.

Analysis and Reports Finally, David will have additional functionalities to utilize this information, such as conducting analysis and generating reports.

6. Configurable Elements

6.1. Main Configurations

• Configuration of specific consultant/genealogy widgets.

• Configuration of the network structure.

• Configuration of KPIs - tracking model.

6.2. Configuration of related modules

• Configuration of political divisions.

• Configuration of environment variables.

• Number of network levels.

• Parent network level.

• Internal code of the parent network.

• Goal configuration.

• Segment configuration within goals.

• Goal dashboard configuration.

• Checklist configuration.

• Configuration of products marked as Kits.

• Assignment of widgets and reports to a desired role.

• Configuration of roles and permissions.

6.3. Module Configuration

Unlike other modules, this genealogy module is primarily configured through Role Access and Environment Variables. These two elements allow the establishment of permission levels and operating conditions for each module, according to the user's needs and preferences.

6.3.1. Environment variables

Name	Description

Name	Description
CUSTOMERMANAGEMENT_NEWVIEW_SHOW	This environment variable controls the full display of the consultants' screen, altering the view of the record table.
Open
NETWORK_CALCULATE_NETWORK_BY_REFERENT	Controls the display of the button to draw the network tree.
With Value = F Open With Value = T
LOAD_WITH_CUSTOMERS_SCREEN_FILTER	If the value of the environment variable is equal to 'T', then by default, upon entering the administrator, it filters for active users.
With Value = T With Value = F

6.3.2. Rol access

These are permissions assigned to user roles to show or hide specific options or actions within the software. Below, you will find the role access related to actions in the consultant administrator.

7. Detailed Scope

7.1. Genealogy

Genealogy is a tool that aids in effectively managing the structure of the network, whether it's for:

• An individual consultant

• The entire company

• The sales force

Similarly, it enables the company to manage sales networks and allocate appropriate roles to different types of clients to structure the genealogy.

7.1.1. ​Network structure

Through the software, it's possible to parameterize different network structures according to width, depth, and business criteria (Territory, matrices, etc.), such as:

• Binary

• Uni-level

• Matrix

• Limited depth and/or width

• Territorial

• Hybrid mix

7.1.1.1. Network types

The software supports the simultaneous configuration of the following networks according to the aforementioned structures:

• Network by Sponsor This refers to the person who leads a network of consultants and ensures that their team's work is developed.

• Network by Referral/Sponsorship This relates to the person who invites another to join the business as a distributor and thus builds their network.

• Matrices A network created based on business rules. Typically, during recruitment processes, networks are established based on matrices with fixed width and depth. These matrices allow for special bonuses to be calculated for achievements and reaching certain sales volumes, among other purposes.

7.1.1.2. ​Network tree

Network Marketing, also known as Multi-Level Marketing (MLM), is a direct sales system in which individuals associate with a company as independent partners. These individuals then recommend others to join the same company to purchase its products or services. The person who recommends others receives a bonus for the purchases made by all their associates.

A network tree in Network Marketing is a way of organizing the distributors or associates of a company that employs this marketing system. It graphically represents the hierarchical structure and relationships among the members of the network, from the sponsor or leader down to the most recent recruits. Each level of the tree corresponds to a generation of distributors, and each branch represents a downward line of sponsorship. The network tree allows visualization of the network's size, growth, income potential, and helps identify areas for improvement or opportunities.

With this tool, you can visualize how this relationship between referrers and referrals is organized. Each node in this tree has two actions:

• View my descendants: This action queries the database to check if the node has descendants. If it does, they are displayed; otherwise, an alert is shown.

• 360-degree Consultation: This action is a link to a 360-degree consultation with the selected person, with prefilled information.

7.1.1.2.1. ​Genealogy structure

• Parent of the Network

  • It's the "leader" record, meaning it doesn't have anyone above in its network structure. It doesn't have references from a Sponsor or a referrer.

  • Reference Fields

    • Referral

    • Sponsor

  • Network ID

    • Unique Field (per network type)

    • Concatenation of personal IDs from the Parent of the Network to the individual.

7.1.1.2.2. Depth Level

• Absolute (from the Parent of the Network)

• Relative (From the Sponsor)

7.1.1.2.3. Generations

Generations are the levels in a multi-level sales structure, and the larger they are, the greater the reference to the distance in the number of sponsors between two individuals.

Reference Person

• 1st Generation

• 2nd Generation

• 3rd Generation

7.1.1.2.4. Genealogy History

The rank history allows you to view the complete history of all the ranks a person has achieved. It displays the duration they held each rank, the previous rank, the new rank, as well as the campaign and date of the rank change.

The software allows preserving the network structure at the end of each business cycle, including:

• Genealogical structure of the network

• Title in the career plan

• Attained KPIs

7.1.1.3.​ Network adjustments

7.1.1.3.1. State Machine

When managing a direct sales business, it's crucial to have effective management of both the company's personnel and the network it comprises.

The state machine is a system function responsible for carrying out calculations based on pre-established rules. This can result in:

• Rank changes

• Network updates

• Commission calculations

All of the above enables the company to maintain a more professional and specialized control over various processes.

First, you select the "Execution Type" and the "Business Period."

Next, you choose the action to execute, such as "Integrate Network" or "Calculate Rank," and finally, you trigger the "Execute Process" button.

7.1.1.3.2. ​Network transfers

Transfers allow for the maintenance of up-to-date geographical regions or commercial management of the sales force, as well as the entire structure of their network.

Transfers of sales force members occur when:

• They move from one zone to another.

• They switch to a different network.

Once this process is completed, the network should be recalculated to ensure it is updated.

7.1.1.3.3. ​Network Compression

Compression occurs in one of the final steps of commission calculation. It keeps the network updated and reorganized if the sponsor or the person one level above becomes inactive. Once this happens, individuals in a lower-level move to the same position where the inactive person was.

Example: This is an example of Lili's network tree. When Juan Carlos becomes inactive, the entire network of people below Juan Carlos is compressed. In this example, Ana moves up to the level where Juan Carlos was located.

…(imagen)

This step is optional and is related to a rule that triggers this process, along with the commercial statuses. In this context, a commercial status must be configured where a person goes for X campaigns without placing an order, marking them as "dropout".

With this configuration, the system evaluates that certain individuals haven't placed orders for X campaigns. During the settlement and campaign closure process, the system labels them as dropouts. As a result, the system automatically places the individuals below in the network under the person above.

7.1.1.4. Network calculation

Network calculation is the process that traverses the entire structure of individuals, generating their updated status. This serves as the basis for calculating all associated Key Performance Indicators (KPIs).

This structure is saved cycle by cycle. Recalculation can be automated (through cron jobs) or done manually from the Commission Manager.

It's essential to perform network calculation to observe the effects of any modifications made.

Example: If a person is deleted, they will still be visible in the hierarchy until a recalculation is executed.

7.2. ​Monitoring

For the company, it's crucial to have control over what's happening, whether it's related to:

• Invoiced orders

• Indicators

• Incidents reported.

• Sales force

  • Performance

  • Invoiced orders

  • Achieved goals.

  • Among others.

For this reason, there are various methods for monitoring the sales force, allowing for comprehensive internal management, and keeping track of everything happening in the system.

7.2.1. ​Network management

This module allows for tracking the Network, its structure, rank, commercial statuses, commissions, KPIs, sales, among others.

• View the complete network tree.

• Export network information

• View invoiced orders.

• Monitor performance, including the number of referrals and related information, etc.

7.2.1.1. KPI for the number of people in the network

For ongoing tracking of the company's growth, we have the capability to consult at a high level to determine the total number of registered consultants, end customers, and active participants. This allows us to understand the current indicators of the network's status and the individuals within it.

The widgets available to us are:

Commercial Statuses

This widget displays the commercial statuses of the network and the number of distributors in each status.

Status

This widget displays the statuses of the network and the number of distributors in each status.

Network Indicators

This widget displays the stencil using the overall calculation of the direct sales industry, including the initial stencil, registrations, and subtracting inactives, etc.

Segmentation

This widget displays the segments of the network and the number of distributors in each segment.

Qualification/Rank Title

This widget displays the ranks of the network and the number of distributors in each rank.

7.2.1.3. ​Filter genealogy list for management purposes

Going into detail, it's possible to filter all consultants based on the following information, in order to perform more specific and rapid management, specifically targeting what's needed.

• Specific Rank

• Honorary Ranks

• Registration Campaign

• Assigned Level in the Network

• Country / Region / Geographical Zone / Section

• Currency

The filter section is composed of subsections, which include:

Personal Information

These filters encompass aspects related to the individual, such as internal code, name, phone number, registration date, etc.

Location

These filters are related to the geographical location of the individual, including address, country, city, zone, etc.

Network

These filters encompass aspects related to the network, such as level, calendar, ranks, sponsor, etc.

Commercial Information

These filters are related to the commercial or activity status of the individual, including status (active or inactive), commercial status (departure, entry, etc.), segmentation, etc.

Transactional

These filters are related to the individual's behavior in terms of sales. This includes people without orders and the traffic light indicator. Additionally, the "Record Limit" filter, which is the maximum number of records to be displayed in the table. Since the table doesn't have pagination, all the displayed records will be shown on the same page.

7.2.1.4. ​Network tree

In the network tree, there are various ways to monitor information, as it enables a more comprehensive view through a hierarchical tree structure, helping to understand its current layout and its constituents.

In this, you can monitor information such as:

• The network that the person leads.

• Indicators, personal information, rank, etc.

7.2.1.5. Visualization of Key Information

Managing the sales force is crucial, as the effectiveness and performance of both the personnel and the company as a whole depend on it.

For this reason, S4DS offers various methods to manage information and track network consultants. For example:

• Centralized Information

  • Residence / Shipping Address

  • Contact Numbers

• Profile Completion Percentage

• History of Placed Orders

• Calculated Commissions

  • Visualization of Indicators and Calculated Commissions can be obtained as follows:

7.2.2. ​Centralized query

It is essential in the management of a sales network to be able to gather information about any consultant. For this purpose, centralized querying allows access to this data to view necessary information and manage their activities and performance in the company. In this, you can inquire about information such as:

• Basic Information

• Number of Orders

• Customer Service Cases

• Invoices

• Benefits

• Used and Redeemed Coupons

• Referred Individuals

• Payment Management

• Commission Management

• Scheduled Events

• Returns

• Balance

• Accumulated Points

• Credit Limit

7.3. ​Segmentation

Segmentation is used to manage and categorize the sales force based on their performance in sales or in general. This hierarchy is based on the commercial states defined by the company. Segmentation can be carried out through:

• Goals

• Rules

• Among others

Next, these will be specified in more detail.

7.3.1. RFM (Recency, Frequency, Monetary)

• Recency (R): How recently a customer has made a purchase. Customers who have made recent purchases are often more engaged and responsive.

• Frequency (F): How often a customer makes purchases. Customers who make frequent purchases may be more loyal and valuable.

• Monetary (M): How much money a customer has spent. Customers who have spent more money are often considered more valuable to the business.

By analyzing these three dimensions, businesses can segment their customer base into different groups, allowing for more targeted marketing strategies and personalized interactions.

• Segmentation Example:

  • Segment AA: Those who place an average order > $300,000 and have >= 6 consecutive campaigns.

  • Segment A: Those who place an average order > $300,000 and have < 6 consecutive campaigns.

  • Segment B: Those who place an average order < $300,000 and have >= 6 consecutive campaigns.

  • Segment C: Those who place an average order < $300,000 and have < 6 consecutive campaigns.

• In this example, customers are segmented based on their average order value and the number of consecutive campaigns they have participated in. This segmentation helps the company tailor their marketing efforts and strategies to different customer groups based on their behavior and purchasing patterns.

7.3.2. Initial Kits

Starter Kits are memberships or products that are purchased to become a part of the company and start as a distributor. Based on the configuration of Starter Kits, it is possible to segment the sales force according to the Kit they purchase when completing their registration. This allows for categorizing distributors based on the specific Starter Kit they choose, which can provide insights into their level of commitment and potential engagement within the company's network marketing structure.

7.3.3. Rules

Rules allow for the definition of various conditions to apply or remove actions on the network and its orders.

One of their functions is to configure conditions for segmenting the sales force based on the fulfillment of parameters set by the company. This configuration of conditions is known as a Rule.

Example: Segmenting the network by Gold, Platinum, etc. This means that distributors who meet certain criteria or achieve specific milestones, such as reaching a certain level of sales or performance, can be categorized into different segments like Gold or Platinum based on the defined rules.

7.3.4. VIP

This functionality is designed to manage a VIP sales force, allowing the option that once the calendar is closed, the company-selected and classified VIP members of the sales force do not become inactive.

This configuration can be done by the administrator or through a bulk upload of the selected sales force. In essence, this feature ensures that VIP members of the sales force remain active even after the calendar is closed, providing them with continued access and benefits within the system.

7.4. Analysis

These are very important for having control over all the variables of the business; they hold significant importance. Through S4, you can access all the information from the screen or generate reports.

For analyzing the information, there are different types of queries and reports available, such as:

7.4.1. ​Dynamic dashboards

Widgets allow for quick and visual access to information or indicators. They contain information from different components, providing a summarized way to access them.

This enables consultants to have an overview of indicators and make decisions to enhance their business strategy based on them.

The sales force can access information such as:

• Behavior of my network

• Consultant segmentation

• Top sellers by zone

• Top consultants with the most referrals

7.4.2. ​Reports

Collecting and analyzing information is crucial for the business entity, whether to identify critical areas or opportunities in the market, and also to track various points related to sales.

Reports allow the sales force to perform mass data management on specific topics through the generation of files. This enables them to access detailed information for proper tracking.

Some of the reports include:

• Sales force tracking

• Stencil report

• New and reentries report

• Sales - Clients: Network

• Category network report

• New network report

• Total network report

• New recruits report

.