DISTRIBUTION AND SALES SYSTEM FOR PRODUCTS AND SERVICES

A distribution and sales system includes a master entity that owns the rights to various products and services and a plurality of management tiers tied together by an electronic network. The management tiers pay an ownership fee to the master entity and in return receive ownership rights that permit them to sell goods and services in a territory, sub-territory, or portion of a sub-territory and to sell different ownership rights to lower management tiers. A lowest management tier has a warehouse, distributes products and receives a service and handling fee.

BACKGROUND OF THE INVENTION

This invention is directed to a system for selling and distributing products and services and more particularly to a system that provides incentives to make sales and efficiencies in distributing product.

The sale and distribution of products and services is well known. Presently, most systems create a competitive environment where sales individuals in the same organization compete against one another and are not rewarded financially for assisting other sales representatives. As a result, there is little incentive to assist others. In addition, the distribution of products from the manufacturer to a customer is often inefficient as product is either shipped in less than full loads or a full load is directed to multiple delivery locations. The current process to distribute products goes through multiple brokers, distributors and sales personal. As a result, a need exists for a system that addresses these deficiencies.

An objective of the present invention is to provide a system where all members benefit from the sale of a product or service.

Another objective of the present invention is to provide a system where products are delivered more efficiently.

These and other objectives will be apparent to one of ordinary skill in the art based upon the following written description.

SUMMARY OF THE INVENTION

A distribution and sales system includes a master entity that owns the rights to various products and services and a plurality of management tiers tied together by an electronic network. The management tiers pay an ownership fee to the master entity and in return receive ownership rights that permit them to sell goods and services in a territory, sub-territory, or portion of a sub-territory and to sell different ownership rights to lower management tiers. A lowest management tier has a warehouse, distributes products and receives a service and handling fee.

DETAILED DESCRIPTION OF THE PREFERRED EMBODIMENT

Referring to the Figures/ a distribution and sales system10includes a master company or entity12. The master company12is comprised of one or more companies that offer products and/or services14or own rights to various products/services14. If more than one company is present, one company may be designated as the master company12, or a separate entity may be formed as the master company12. The master company12has a controller16with a processor18, software20and a database22that is connected to an electronic network.

The system10also includes a plurality of management tiers or members24. For example, the system10may include a plurality of first tier or diamond26members who are managed by the master company12. A plurality of second tier or platinum28members are managed by a diamond26member. Finally, a plurality of third tier or gold30service center members are managed by the platinum26members.

To become a member24, each entity pays an ownership fee32to the master company12. The amount of the ownership fee32is based upon whether a member24is a diamond26, platinum28or gold30member. The master company retains all ownership fees32paid by diamond26members. A percentage of the ownership fee32paid by a platinum28member is distributed to the diamond26member as a roll back fee34. Ownership fees32paid by gold30members include a percentage that is distributed to both the diamond26and platinum28members as a roll back fee34. Typically, ownership fees32are higher for members24closer to the master company12and the roll back fees34or percentages are set to allow the diamond26and platinum28members to recoup their ownership fee32based upon the number of lower tier members24in the system.

The master company12sells ownership rights36to the diamond26members. The ownership rights36permit the diamond26members to sell products and services14within a territory38and to sell diamond26ownership rights40to platinum28members within the territory38. The ownership rights40sold to platinum28members permit the platinum28members to sell the products and services14within a sub-territory42and to sell gold30ownership rights44to gold30service members within the sub-territory42. The ownership rights44for the gold30members permits the sale of products and services14within a portion46of the sub-territory42.

The master company12is responsible for managing and training the diamond26members. The diamond26members are responsible for managing and training the platinum28members. Similarly, the platinum28members are responsible for training and managing the gold30members.

The gold30members differ from the diamond26and platinum28members in several ways. First, the gold30members have a warehouse48for storing product14. Gold30members are also responsible, in addition to selling products and services14in a portion46of the sub-territory42and for the distribution of products and/or providing services for purchasing customers50. In return for providing distribution and services, gold30members are paid a service and handling fee52.

The products and services14may be exclusive54or non-exclusive56. Exclusive products54are sold only by members24while non-exclusive products56are sold by both members24and non-members58such as suppliers and wholesalers. Sales to non-members58preferably are sold in truckload increments of ⅓, ½ and full loads. When sales are made to non-members58, a commission/royalty is paid to members24based upon whether the non-member58is located within a portion46, the sub-territory42, and the territory38.

In operation, a sale of a product and/or service can be made by any member24. When a sale occurs, a purchase/service order60is entered into a remote computer62by a member24and then transmitted via the electronic network to the controller16at the master company12. The order60includes information on the member24who made the sale, the products14sold, the size of the order, the customer and the delivery location. The order60is stored in the database22by the processor18. The processor also determines whether the order is to a member24or to a non-member58, and whether the order is large64or small66. Small retail sales will be service by gold30.

Typically, a large order64fills a semi or tractor trailer while a small load66fills only a portion of a semi or tractor trailer.

If the order60is from a non-member58, the processor18sends an instruction to a manufacturer68of the product to deliver the product14ordered to the non-member58.

The processor18also calculates and distributes a lowered service and handling fee52to the gold30member who has gold30ownership rights44to the portion46of the sub-category42where the non-member58is located. The controller16will also calculate and distribute commission/royalty70to members24.

If the order60is from a member24, the controller16first determines if the order60is large64or small66. If small66, the controller checks the inventory72of the closest gold30member to determine if the product14is in stock. If in stock, the gold30member pays a commission to the member24who made the sale. If the order is large64, the controller16sends instructions to the manufacturer68to deliver the product14to the gold30member closest to the location of the purchasing customer50or direct ships to the customer. The controller16calculates and distributes the service and handling fee52to the closest gold30member who delivers the product14to the customer50. The controller16also calculates and distributes a commission/royalty70to the members24based upon the type of member24that makes the sale. If the sale is made by a diamond26member, the full commission70is distributed to the diamond26member. If a platinum28member makes the sale, a percentage of the commission fee70is sent to the diamond26member with the remainder going to the platinum28member. If the gold30member makes the sale, a percentage of the commission fee70is distributed to both the diamond26and platinum28members with the remainder going to the gold30member.

The controller16also calculates an annual promo fund fee74that is paid to the master company12by the members24. The promo fund fee74is based on the benefits and services offered by the master company12, a percentage of which is used for branding the products and services14. A percentage of the promo fund fee74, calculated by the controller, is returned to the members24in the form of sales and marketing materials76. Also, a percentage of the promo fund fee74paid by platinum28members will roll back to the diamond26members. Also, a percentage of the promo fund fee74paid by gold30members will roll back to the diamond26and platinum28members to compensate for training and the like. Sales and marketing materials76will be purchased in bulk and distributed at cost plus shipping. In one embodiment, members24can earn credits78based on performance.