There is no road in the world, and as more people walk, a road is formed. "Distribution is also a road.
With the development of the Internet, distribution system is a familiar word. So what is the underlying logic of distribution? What kind of platform is suitable for distribution? How to do distribution?
Let's take a look at this article below.
1. Distribution overview
1.1 Concept
In Western economics, the meaning of distribution is to establish a sales channel for . means that products are sold to consumers through certain channels.
has been evolving with the emergence of the Internet. What we now call distribution mostly refers to a distribution platform that combines online and offline.
Distribution is the way in which takes out a part of the promotion expenses (advertising, operations, etc.) of the original platform to distributors, and lets them help the platform promote and sell.
In other words, the way of distribution is to directly or indirectly bring continuous value to the platform. Through the sharing + trust economic model, combined with attracting new products and selling , the situation where the platform and distributors win-win is achieved.
1.2 Distribution system model
1.3 Several nouns
Distributor: customers who can help promote product sales
Consumers: those who buy and end use the product
Direct promotion: The downline promoted directly by the distributor is the first-level distributor
Intermediate promotion: The downline promoted by the first-level distributor under the distributor is the second-level distributor
split/commission: Through attracting new products and consumption of lower-level distributors, a certain proportion of
% is drawn.
1.4 The psychological considerations behind distribution
Interpersonal connection Through its own research on the platform, it discovers the advantages of platform products, and can also obtain certain reward returns through its own connections .
naturally "want to share good things with friends" in the seemingly "win-win situation", deepens interpersonal connections and improves the relationship with its circle of friends.
Acquaintances Social Trust is a relational behavior, a transaction basis .
For a new platform, the user's psychology is often: "Only if I trust you, I will buy your things."
. If it is a platform introduced by an acquaintance, the psychological changes are often like this: "The product introduced is not bad. Although I don't understand this platform, I'm pretty good. "
Because people's behavioral judgment and sense of security come from familiar with , what users feel is the value, making users feel familiar and safe is the biggest solution to trust marketing .
cognitive bias Ordinary distributors will not realize their own relationship chain. The circle of friends is actually a correct exchange of money. After a friend becomes your subordinate, his purchase is actually In fact, it is also part of the value manifestation in the distribution system. The
platform encourages distributors to actively invite friends through corresponding rewards, which is actually helping themselves save a lot of advertising fees. This is also the core link of corporate user fission, that is, makes full use of social relationship chain , emphasizes sharing, and uses minimum budget to maximize to encourage users to actively share fission.
In general, users are self-propagating In fact, part of the reason for the behavior of the user is psychologically due to the cognitive bias of the user.
needs to meet needs can be analyzed through Maslow demand theory , which is actually to meet the needs of users at different levels .
analyzes from material needs . For the sharer (distributor), his needs are "get rich returns"; for For the sharer, his needs are "get worry-free and easy-to-use products".
analyzes from emotional needs and social needs . The sharer wants to share a good platform with people around him, and can help friends through his own resources, greatly enhancing his sense of accomplishment. The shared person may be due to social relationships, or due to actual needs and other factors, and on the premise that the quality is guaranteed, he will also be grateful to the sharer because he meets his needs and is satisfied.
Psychological Expected Value From a psychological point of view, when you want to get this product, you are too far from the goal, you are unwilling to put in too much effort to achieve it.
, which is usually set in the distributor's promotion mechanism, is generally in the form of . The upgrade conditions in the early stage are relatively simple, and the upgrade conditions are gradually increased in the subsequent upgrade conditions.
When users find that the early threshold is easier to meet, they are within their own expectations and expectations, and then they will take action. When it develops to a certain level, the threshold for promotion is increased by , but the cost of on the platform has been too much . At this time, many distributors will often insist on continuing to work towards higher goals.
2. Distribution system analysis
2.1 The root of the distribution system
The concept and source of the distribution system did not appear in recent years, but this statement was already there before 2000. The root of the source of the
distribution system is that after the platform media (such as products, courses, etc.) are produced, they are delivered to the end users through normal sales, promotional activities, and advertisements.
As social development and market becomes saturated, problems such as users are difficult to reach, expensive traffic, and capital flow are prominent. Many Internet products are gradually introduced into the distribution system. On the other hand, it is a diversified marketing method.
quickly reach users and attract precise groups. In the actual promotion process, the product is used to build a branded psychological awareness of through advertising. It attracts users through channel promotion, offline promotion and other methods, and then retains targetedly in the future.
. Distribution generally uses various invitation rewards for and commission rewards for to attract distributors to continuously expand customers. Through the "scan code" and "buy" in the distribution system, it can become offline, which is simple, convenient, fast and effective.
uses acquaintances to reduce traffic overhead. After the birth of a product, , the traditional marketing method is to promote software products through advertising, various marketing activities, offline promotion, channel promotion, etc. With the past of Internet traffic bonus , it is difficult to acquire customers, and expensive traffic has become a pain point in many product promotion.
. The distribution system is based on the traffic of major distributors on the platform. On the premise that the system proportion is set properly, the purpose of users to form a closed-loop with self-growth of can be achieved, and can reduce the cost of acquiring customers. At the same time, since the distributors' own traffic comes from acquaintances (relatives, friends, etc.), the probability of obtaining accurate customer sources is high.
Through social fission, the problem of cash flow of itself cash flow cash flow has always been a decisive issue for the survival of a company.
distribution system continues to acquire customers through its cycle of "Invite friends → Reward → Reinvite → Reward" . New users use the cycle of "sub-level purchase → superiors obtain commission → subordinates purchase again → superiors obtain commission again" . On the premise that the number of users reaches a certain scale, it can be roughly predicted through Matthew effect that the platform's income will gradually increase exponentially.
directly or indirectly profits through distributors' threshold funds (payment, purchase to become a distributor, etc.) and distribution offline consumption to strengthen cash flow.
But you should also pay attention to the product planner must not cross the legal bottom line . All distribution rules must be specified within the legal requirements and control scope .
2.2 What kind of platform is suitable for distribution?
(1) High-quality guarantee
Whether it is on e-commerce platforms, K12 education courses, etc., quality accounts for a large proportion. There is a saying in e-commerce platforms: "The beginning of the trend depends on traffic, and the success or failure of the supply chain." Only under the premise of high quality can users be encouraged to communicate by themselves.
Otherwise, even if a large number of users are attracted to the platform and experience it is inconsistent with the content previously promoted and fails to meet the psychological expectations, it will leave the market decisively, which will easily have a negative impact on the brand.
(2) Continuous commission
is still the same, "The world is bustling for profit, and the world is bustling for profit."
platform converts ordinary users into distributors through various bonuses in the early stage. So, where does it come from and why does it stay.
is used to the high discount of for . Once the platform loses the ability to continue to divide the commission, the distributor will also disperse.
So, before considering the distribution system, first consider whether 's own products have enough profits to provide users, and whether the company can withstand such high rebates . If
can't bear it, then what if the implementation method is changed?
These are what PM should consider before building a distribution system. does not make for the sake of doing it.
2.3 Find the target group of distributors
. As the distributor of the platform, what are the characteristics of users?
has more free time, based on its own acquaintance network, and has a certain desire to make money.
Friends who know the distribution system generally know it, and we call it Xiao B.
(1) Personally
Mom: She has a lot of free time, and due to the situation, she cannot work in the short term and has the desire to make money.
WeChat: Have a certain understanding of the traditional distribution system, low learning costs, many resources in hand, and a strong desire to make money.
Purchasing agent: Good at selling, has a lot of resources, and the desire to make money is the same as that of WeChat business.
(2) Group
Owned brand distribution team: It has a certain accumulation itself, is a group version of the micro-business, which can quickly replicate fission, and usually the number of brands is relatively single, so you can talk about cooperation with it according to the situation.
Large traders: their characteristics are wide sales and have their own inherent sales channels. They can quickly use their own advantages to sell goods and get commissions on the platform. Product designers need to make certain restrictions on such small Bs, such as the upper limit requirements for purchase volume.
3. The essence and key of distribution
3.1 Essence
The essence of distribution lies in: building a system that drives users to explore their own connections more deeply. In this process, distributor directly or indirectly creates value for the platform .
Every user is a potential advertising body, and every distributor is a communication body.
For users , due to the credit spread of distributors, they have a certain degree of trust in the platform and media .
For distributor , the distribution policy provided by the platform can obtain a sufficiently generous distribution commission .
For platform , users can form a self-growth closed loop. While reduces customer acquisition costs, also obtains more accurate users .
3.2 Key
Clears the essence of distribution, so the key is also very intuitive and clear, lies in two points: attracting new products and selling goods.
(1) Get new users, strengthen your own distribution team,
Strengthen your own distribution team, that is, guide new users to the platform, to be blunt, it is "hiring people", that is, "hiring new people". By attracting new products, distributors can obtain a huge distribution team, and all downlines are their potential consumers.
For the function of pulling new, there are two ways to handle :
The first type: pulling new new can get a separate user reward fee . The advantage is that it can enable users to actively attract new users for the platform, but the disadvantage is that it is easy to fall into the infinite "pull" cycle and it is also easy to breed wool parties.
The second type: recruits new products without getting , and can become the distributor's offline, and consumes it on the platform. The distributor receives a certain proportion of commission according to their different levels.
The above two processing methods are not fixed, and can be planned and adjusted according to the platform's business situation.(The rules are dead, the method is alive)
(2) Maintain the team and promote the consumption of platform distribution media
After the distributor obtains a certain downline team, if the users of the downline team do not have the corresponding consumption amount, the distributor cannot obtain commissions from their team members. Then the method is only when continuously encourages users to consume on the platform, and the superiors can obtain the platform commission .
For the platform, it is not appropriate to allow users to gradually build their own distribution team. It is often not suitable to build a group on the platform. It is often a portal in the platform to guide users to other social platforms, and the distributors themselves use to guide users .
4. How to build a distribution platform from 0 to 1?
has said so much before. I hope friends can have a rough understanding of the distribution system, and at the same time, they can clarify their own design ideas .
In view of the actual planning needs, we will not play with virtual things. After explaining the knowledge points and modules required by the distribution platform, we will also present the process and prototype to provide friends with clearer understanding of implementation . (empty talk about the theory of landing, it's really a hooligan)
often too many people will use "how to plan" as a standard solution, but friends should also understand that before planning, what is more important is why needs to plan , and whether there is a need for planning. The essence of hidden under each function point needs to be explored.
4.1 Distributor threshold
The core design of the distributor threshold is to filter out some users who do not participate in the distribution, so that users have "role perception" , and things obtained through certain thresholds will be easier to cherish.
becomes a distributor, which is divided into two types: no threshold and no threshold. Usually, there are three types of designs: free
join, paid purchase, and traffic-type threshold .
(1) Free join/application form
This method is equivalent to No threshold becoming a distributor. Users only need to fill in the information and after the background review is passed, they can become a distributor. The low threshold has attracted more users to become distributors, but it has also brought more distributors of "slobbying" .
At the same time, the distribution system without thresholds is also easy to destroy market rules, and this method is not recommended.
(2) Pay for purchase
becomes a distributor by paying a certain amount, which is equivalent to a game between users and the platform. "spend small money to make big money" is the psychological hint of brought to users by the platform. By purchasing "tickets", you can get the opportunity to earn commissions.
However, because this method is too explicit, it is suspected of "pulling people" and raising funds pool . A certain game started with social e-commerce through this method and was eventually punished. Therefore, the method of becoming a distributor by paying to has gradually been abandoned .
(3) Purchase (number of times, amount, specified products)
becomes a distributor by paying a certain amount to purchase specified products. Users can not only get the "equal value" product (why are the same value added to quotes, as you will know when you see the end of the article), but also get the distributor's permission. For users, it is more cost-effective than paying directly.
Usually the platform sets up products in this part of the platform will be richer and have a complete range of categories. When users choose products, they create the illusion that is "purchased essentials". At the same time, can "free" become a distributor, killing two birds with one stone, and also enhancing the user's conversion to becoming a distributor.
understands the logic after purchases a designated product and becomes a distributor . can also extend to to to meet a certain number of purchases or meet a certain amount of purchases to become a distributor, etc. The specific implementation requires
PM to make different types of plans according to the business needs of its own platform.
But in fact, in terms of the method, there are usually some unknown secrets, which will be mentioned specifically at the end of at .
(4) Traffic threshold
Some platforms need distributors with certain traffic, so users with certain traffic of need to become the distribution volume. filter to remove some distributors of "shuoyu" . When applying, users will be required to upload evidence that they can prove traffic, such as WeChat friends screenshots, WeChat community screenshots, etc., and the background operators will verify it before passing it.
4.2 Distributor level
Distributor level is divided into two categories according to the maintenance method, downgrading and not downgrading.
(1) Degradation
Degradation refers to the fact that the user fails to meet the level requirements set by the platform within the time period, and the distribution level will be reduced.
uses certain relegation measures to encourage users to continuously output value to the platform.
relegation measures suggest: reach a certain amount, reach a certain order, reach a certain team to go offline.....
designed by core principle is: user behavior that can bring value to the platform (selling ability, new recruitment ability)
(2) Not downgraded
Not downgraded means that no matter the user's subsequent activity on the platform, it does not reduce the user's distribution level.
can reduce the psychological pressure of users , but subsequent cannot fully guarantee the quality of distributors , and distributors need to be activated later.
4.3 Distributor promotion mechanism
Like the member system, the distribution system also needs to set a reasonable promotion mechanism for in the system . gradually strengthens the role of distributors in the distribution system.
The core is that increases the sunken costs of distributors and strengthens the self-driven power of distributors. The higher the cost of investing in the platform, the more stickiness and the trust will increase proportionally to the platform.
The above mentioned strengthening self-driven power lies in becoming a higher distributor, and you can get more distribution commissions or rewards. The promotion mechanism is essentially an incentive mechanism.
So, how to design in ? Let’s analyze
. For distributors, the main need is to attract more teams to offline through their own connections and relationships, so as to obtain the corresponding commission for through offline consumption .
In this demand, there are two elements: people and money.
can be concluded that for the relevant design of the promotion mechanism, there are generally the following types of
to reach a certain consumption amount
to reach a certain team number
to reach a certain team number
to reach a certain team number
to reach a certain team number and the number of team number
to reach a certain consumption amount & a certain team number
…
. The level rights after promotion should also be clearly understood. Generally, the higher the level , the higher the commission ratio of . (Users don’t like routines), there are also postage reductions and exemptions, priority stockpiling, etc., which are essentially making money for users or saving money.
Planning tips: In terms of the number of promotion mechanisms (number of downlines, consumption amount) can be set up as a step-by-step growth, using the user's game psychology to promote the interest of primary distributors in the early stage.
4.4 Setting of distribution media commission
Let me mention that here, distribution media refers to the core items that has value in the platform , such as products in e-commerce, courses in online education, etc.
Usually when setting the distribution ratio, there are several factors of : default commissions for all products, commissions for individual products, and different commission ratios enjoyed by different distributor levels.
follows the following priority: single product commission ratio level commission ratio default commission ratio .
When setting up distribution products, due to the limitation of its communication, it is necessary to choose products with a high repurchase rate and good quality of in order to allow distributors to have "talk about" to share.
4.5 Distribution orders & distribution performance
The design of distribution orders and distribution performance comes from the user psychology of "timely feedback" . If you have to make efforts, you need intuitive data feedback.
has clear purpose: to allow users to view their orders and commissions they receive at any time in .
Note: People nowadays are too impatient and need to get feedback after paying, so they need to consider the function of "earnings to be received".
4.6 Reward mechanism
"No profit, no early rise", I believe no distributor is willing to advertise for the platform for free.
prompts distributors to continue selling goods to attract new power . In the final analysis, it is material (it is a bit explicit, but it is the fact)
still can't understand? So, simply put, attracting new products → reward money; sub-level consumption → reward money;
has also sorted out three types of reward mechanisms, namely distribution order reward, material reward, and spiritual reward.
(1) Distribution order
Distribution order includes two types: new rewards and lower-level consumption orders .
timely distribution of profits and timely checkout is the core of planning the distribution order. Distributors need to get timely feedback from in order to better attract new products and sell goods. (Complied with the function of distribution order statistics in the distribution system)
For distributors, all efforts come from the trust level of the platform . Once there is a problem with the trust level, it is easy to lose the distributor.
(2) Material reward
Material reward comes from the differentiated plan of . According to the 28 law , 20% of distributors often make 80% of their performance. So for these distributors, when they reach a certain transaction volume/new volume, they need to have monthly/quarterly/annual rewards to continuously encourage their to continue to devote energy to the platform.
Because the core of distribution lies in "sustainability" (key points are drawn, you need to take the test!)
(3) Spiritual reward
Materials must be satisfied, and you cannot be left behind in spirit.
The premise is that under the premise that is met with material content, the mental satisfaction of as a material reward is an additional subsidy of to meet the spiritual needs of in a small number of people . In the display of the platform, corresponding functions can be planned and designed, such as distributors' unique permissions, logos, honors , etc.
4.7 Distribution promotion
Distribution promotion refers to two meanings: platform recruits distributors, and distributors recruits offline .
platform recruitment distributors platform recruitment distributors generally have two major methods: by implanting distribution introductions in on the platform traffic entrance; and introducing distribution introductions in the distribution center.
distributor recruitment downline distributor recruitment generally has two methods: distribution poster and sharing product .
becomes a downline through the exclusive distributor poster provided by the platform; it can also make the sharers "feel free" the distributor downline through the product poster provided by the platform.
4.8 Distributor training system (community functions, etc.)
Distributor training system includes a series of functions. Here are a few of them, and I hope they can play the role of throwing bricks and attracting jade.
distributors are usually divided into two categories: novices distributors and experienced distributors
user characteristics of novices distributors: no resources, no professional team, some have some understanding of Internet marketing, and have a heart to make money.
User characteristics of experienced distributors: they have resources in their hands, some may have professional teams, have a very good understanding of Internet marketing, and have a strong heart to make money.
So, according to the 28th law, 80% of the users of are often novices distributors. Then, after "accidentally" becoming distributors, the platform needs to "empower" for the distribution system , so as to retain distributors .
does not understand for marketing, so there is no special copywriting and pictures to promote. Platforms often need to provide material for corresponding distribution items for distributors to "forward" and "share".
does not have resources , so you need to learn how to operate, how to obtain resources, and how to sell goods. The platform needs to provide the corresponding training mechanism . Whether it is online or offline training, it is OK, and it is not limited to the method.
does not have a professional team , so these distributors need to gather together to form team exclusively for the platform, train (xi) in the form of a team, and rewards will be rewarded to achieve a certain amount, etc., to create a sense of platform belonging for distributors.
What? What is said above is too long-winded?
In a sentence: Group training is provided for resources, and the distribution system is indispensable.
5. Distribution system planning example
has clarified the above brief description and analysis. At this point, we only display ideas and logic on the page. The distribution system on the market has a variety of methods and different ways of playing. The prototype and process cannot replace the distribution process , and is only used as a reference for to be planned for product friends.
5.1 Distribution prototype
In order not to make friends fall into details, the above only displays some pages, hoping to attract attention.
5.2 Distribution process
Since there are many ways to play distribution and different forms, only the basic process is listed for viewing by friends.
6. Distribution unspoken rules that ordinary people do not mention
6.1 At most, three-level distribution
In the current legal provisions, there is no clear regulation on the distribution behavior. Generally, we determine whether it is illegal is "three-level distribution" .
is not enough in the third-level distribution. It also requires the product itself to have physical support or physical services so that it will not fall into the illegal act of "pulling people" and "playing with capital markets".
6.2 Distribution Rewards Ladder
When planning a distribution promotion mechanism and distribution reward mechanism, product users can pay attention to the psychological activities of "psychological estimate value" .
For example, take the distribution promotion mechanism as an example. When users find that the early threshold is easier to meet, they are within their own expectations and expectations, and then they will take action.
When it develops to a certain level, the threshold for promotion is raised, but the cost of on the platform is too high. At this time, many distributors will often insist on continuing to work towards higher goals.
laddering helps early users' cost investment and gradually guides subsequent users' additional investment.
6.3 Distribution products Gold-plated
Among the ways to become a distributor, there is one way to "become a distributor by purchasing corresponding distributors."
often has two characteristics:
First, costs (as for how low it depends on the platform's conscience), a pillow marked with ¥399, and the actual cost may be more than a few dozen.
Secondly, is not well-known brand , because the market price of well-known brands is generally fixed, and the platform usually does not expose the real cost to the public.
Some friends may say again: "You are talking nonsense again. The cost is so low and the price is so high, so who would buy it?"
Don't be anxious.
This is the wise thing about of each distribution platform . It often lists products on the shelves of major e-commerce platforms such as Taobao and Dong, and marks them at similar prices, and then finds people to brush orders and comments, in order to "manufacturing market price" .
At this time, even if the user goes to Taobao to look for it, the product will get the wrong market price.
So at this time, users will often be proud of their "smart" : if you spend money to buy a membership, you can also get a distributor function, which is cost-effective! Long live the platform!
"Ha, it's too naive baby ."
"Golding" planning thinking is not only applicable to distribution, but can also be used in various membership systems and points systems.
written at the end
distribution is not so daunting or so mysterious.
Under the legal scope of controls , can reasonably use distribution system, which can also bring considerable turnover to its own platform.
Distribution is not only suitable for the e-commerce industry (although it is used more), but can also give full play to its role in K12 education, fitness, medical and other industries.
Only by fully understanding the essence, key, and user psychology behind it can we flexibly play with the distribution system.
's plan is not static. Due to external factors such as policy pressure, market changes, user choices and other external factors, product people often need to continuously adjust their own distribution system according to the situation, and at the same time, to prevent the occurrence of "one moves the whole body", so they need to carefully consider it before designing.
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