We are setting up an Member Marketing “Social Enterprise” to generate funds for a Foundation, which will be endorsed by the Australian Tax Office as a ‘Deductible Gift Recipient’, Tax Concession Charity.
Our ancillary business model is a Club, based on a ‘unlevel’ network with unlimited width & depth. A Member may personally introduce only 5 and will be paid Commissions down to & including their fifth level.
There will most probably be vacancies, at least in the short to medium term. We will be relying solely on word-of-mouth / referral & recommendation marketing; however there is the chance that an orphan will register from our website and will go automatically onto the Club’s frontline as did the founding Members.
• We will be looking for an alert to the appropriate parties whenever anyone comes looking at becoming an Member, whether random or referred by another (whose code they will have entered).
• If they don’t join, we send a “thanks for visiting; if you want more information etc”; if they do, “Welcome / next step …” and an advice to their Introducer. recognition of level achieved (and potential benefits)
The system is basically:
1. A joins and pays $8 a month ($5 tax-deductable donation, $3 membership)
2. A personally introduces 5 Members (A’s Personal Group)
3. A encourages & assists those 5 to personally introduce 5 Members.
4. A encourages & assists A’s 5 to encourage & assist their 5 to personally introduce 5 Members (fill their Personal Group). This will normally be the extent of A’s involvement.
5. The maximum number of Members in any group is 3905
6. One full month’s grace is given to refill vacancies that occur in my first level, before the commission rate is downgraded. A may either:
a. take up another Membership, but only if I filled my first level previously; this will commence a new group and effectively enable me to develop commissions for more than 3905 Members
b. personally introduce another Member. This will simply expand the existing group and will max out at 3905 Members
We believe we have provided sufficient incentive for an introducer to fill/maintain/refill their first level, but require an ‘alert’ in the system to advise ASAP if a frontline Member drops out. Their Inviter only can refill that position, either with
• a second subscription (only if first previous 5 positions were filled) or
• another Member and in so doing starts another group and the Inviter goes back up to the higher Commission rate.
We will have to communicate with Members and provide monthly reports and annual statements of Donations to the Foundation & Commissions paid by the Club.
Apart from consolidated results we would like to limit any Member to basic information and alerts for their frontline only, with only a summary of downline at each of 5 levels.
We will need credit card / online banking facilities for receipts & payments, whatever will minimize costs for us & Members. Subscriptions are set up as automatic recurring payments on 28th of each month. All qualifications and entitlements are based on paid Members at 28th of month (if cooling off period, cut-off that many days earlier). Commissions will be paid by 15th of month following (possibly sooner?).
We may have one item to ‘sell’ and that will require ticking a simple yes/no registration. Members are allocated one free ticket to quarterly events. Tickets will be issued online, only after Member enters details.
There is an associated voting weight relative to the number of Members personally introduced. Each quarter Members may vote for their preferred category of charity for the Board to consider when awarding grants (0:17%, 1:33%, 2:50%, 3:66%, 4:83% and 5:100%)
Commissions may be paid in part or whole to Foundation / another charity / Member's nominated account.
Progressive monthly statements & reports will be available on each Member's personal page, accessed by user name & password. Similarly, annual statements of receipts & payments will be available
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