Abstract:
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.

Description:
CROSS REFERENCE TO RELATED APPLICATION 
       [0001]    This application claims the benefit of U.S. Provisional Application No. 61/951,298 filed Mar. 11, 2014. 
     
    
     BACKGROUND OF THE INVENTION 
       [0002]    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. 
         [0003]    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. 
         [0004]    An objective of the present invention is to provide a system where all members benefit from the sale of a product or service. 
         [0005]    Another objective of the present invention is to provide a system where products are delivered more efficiently. 
         [0006]    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 
       [0007]    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. 
     
    
     
       BRIEF DESCRIPTION OF THE DRAWINGS 
         [0008]      FIG. 1  is a schematic diagram of an environment for a sales and distribution system. 
           [0009]      FIG. 2  is a flow diagram for a creation of a sales and distribution system. 
           [0010]      FIG. 3  is a flow diagram for an operation of a sales and distribution system. 
           [0011]      FIG. 4  is a flow diagram for an operation of sales and marketing for branding products and services. 
       
    
    
     DETAILED DESCRIPTION OF THE PREFERRED EMBODIMENT 
       [0012]    Referring to the Figures/a distribution and sales system  10  includes a master company or entity  12 . The master company  12  is comprised of one or more companies that offer products and/or services  14  or own rights to various products/services  14 . If more than one company is present, one company may be designated as the master company  12 , or a separate entity may be formed as the master company  12 . The master company  12  has a controller  16  with a processor  18 , software  20  and a database  22  that is connected to an electronic network. 
         [0013]    The system  10  also includes a plurality of management tiers or members  24 . For example, the system  10  may include a plurality of first tier or diamond  26  members who are managed by the master company  12 . A plurality of second tier or platinum  28  members are managed by a diamond  26  member. Finally, a plurality of third tier or gold  30  service center members are managed by the platinum  26  members. 
         [0014]    To become a member  24 , each entity pays an ownership fee  32  to the master company  12 . The amount of the ownership fee  32  is based upon whether a member  24  is a diamond  26 , platinum  28  or gold  30  member. The master company retains all ownership fees  32  paid by diamond  26  members. A percentage of the ownership fee  32  paid by a platinum  28  member is distributed to the diamond  26  member as a roll back fee  34 . Ownership fees  32  paid by gold  30  members include a percentage that is distributed to both the diamond  26  and platinum  28  members as a roll back fee  34 . Typically, ownership fees  32  are higher for members  24  closer to the master company  12  and the roll back fees  34  or percentages are set to allow the diamond  26  and platinum  28  members to recoup their ownership fee  32  based upon the number of lower tier members  24  in the system. 
         [0015]    The master company  12  sells ownership rights  36  to the diamond  26  members. The ownership rights  36  permit the diamond  26  members to sell products and services  14  within a territory  38  and to sell diamond  26  ownership rights  40  to platinum  28  members within the territory  38 . The ownership rights  40  sold to platinum  28  members permit the platinum  28  members to sell the products and services  14  within a sub-territory  42  and to sell gold  30  ownership rights  44  to gold  30  service members within the sub-territory  42 . The ownership rights  44  for the gold  30  members permits the sale of products and services  14  within a portion  46  of the sub-territory  42 . 
         [0016]    The master company  12  is responsible for managing and training the diamond  26  members. The diamond  26  members are responsible for managing and training the platinum  28  members. Similarly, the platinum  28  members are responsible for training and managing the gold  30  members. 
         [0017]    The gold  30  members differ from the diamond  26  and platinum  28  members in several ways. First, the gold  30  members have a warehouse  48  for storing product  14 . Gold  30  members are also responsible, in addition to selling products and services  14  in a portion  46  of the sub-territory  42  and for the distribution of products and/or providing services for purchasing customers  50 . In return for providing distribution and services, gold  30  members are paid a service and handling fee  52 . 
         [0018]    The products and services  14  may be exclusive  54  or non-exclusive  56 . Exclusive products  54  are sold only by members  24  while non-exclusive products  56  are sold by both members  24  and non-members  58  such as suppliers and wholesalers. Sales to non-members  58  preferably are sold in truckload increments of ⅓, ½ and full loads. When sales are made to non-members  58 , a commission/royalty is paid to members  24  based upon whether the non-member  58  is located within a portion  46 , the sub-territory  42 , and the territory  38 . 
         [0019]    In operation, a sale of a product and/or service can be made by any member  24 . When a sale occurs, a purchase/service order  60  is entered into a remote computer  62  by a member  24  and then transmitted via the electronic network to the controller  16  at the master company  12 . The order  60  includes information on the member  24  who made the sale, the products  14  sold, the size of the order, the customer and the delivery location. The order  60  is stored in the database  22  by the processor  18 . The processor also determines whether the order is to a member  24  or to a non-member  58 , and whether the order is large  64  or small  66 . Small retail sales will be service by gold  30 . 
         [0020]    Typically, a large order  64  fills a semi or tractor trailer while a small load  66  fills only a portion of a semi or tractor trailer. 
         [0021]    If the order  60  is from a non-member  58 , the processor  18  sends an instruction to a manufacturer  68  of the product to deliver the product  14  ordered to the non-member  58 . 
         [0022]    The processor  18  also calculates and distributes a lowered service and handling fee  52  to the gold  30  member who has gold  30  ownership rights  44  to the portion  46  of the sub-category  42  where the non-member  58  is located. The controller  16  will also calculate and distribute commission/royalty  70  to members  24 . 
         [0023]    If the order  60  is from a member  24 , the controller  16  first determines if the order  60  is large  64  or small  66 . If small  66 , the controller checks the inventory  72  of the closest gold  30  member to determine if the product  14  is in stock. If in stock, the gold  30  member pays a commission to the member  24  who made the sale. If the order is large  64 , the controller  16  sends instructions to the manufacturer  68  to deliver the product  14  to the gold  30  member closest to the location of the purchasing customer  50  or direct ships to the customer. The controller  16  calculates and distributes the service and handling fee  52  to the closest gold  30  member who delivers the product  14  to the customer  50 . The controller  16  also calculates and distributes a commission/royalty  70  to the members  24  based upon the type of member  24  that makes the sale. If the sale is made by a diamond  26  member, the full commission  70  is distributed to the diamond  26  member. If a platinum  28  member makes the sale, a percentage of the commission fee  70  is sent to the diamond  26  member with the remainder going to the platinum  28  member. If the gold  30  member makes the sale, a percentage of the commission fee  70  is distributed to both the diamond  26  and platinum  28  members with the remainder going to the gold  30  member. 
         [0024]    The controller  16  also calculates an annual promo fund fee  74  that is paid to the master company  12  by the members  24 . The promo fund fee  74  is based on the benefits and services offered by the master company  12 , a percentage of which is used for branding the products and services  14 . A percentage of the promo fund fee  74 , calculated by the controller, is returned to the members  24  in the form of sales and marketing materials  76 . Also, a percentage of the promo fund fee  74  paid by platinum  28  members will roll back to the diamond  26  members. Also, a percentage of the promo fund fee  74  paid by gold  30  members will roll back to the diamond  26  and platinum  28  members to compensate for training and the like. Sales and marketing materials  76  will be purchased in bulk and distributed at cost plus shipping. In one embodiment, members  24  can earn credits  78  based on performance.