AI and blockchain-powered solutions transform gaming MLM business

Gaming MLM at crossroads: Analyzing risks and challenges

Operating in both the industries presents numerous challenges owing to the complex regulations governing both the industries. The gaming industry has advanced at a faster pace in recent years with technology fueling its growth.

A gaming MLM business operating in the US and Europe in the multi-level marketing model wished to enhance their operations in terms of user engagement, network growth and by implementing a transparent reward system. The competitive pressures from the gaming industry forced the company to reinvent their technology infrastructure to stay ahead in the market.

Added to this were the struggles and skepticism associated with the MLM model. Hence it also became essential to build a transparent and trustworthy brand. Similarly, the gaming industry faces its own challenges, particularly with concerns over pay-to-win mechanics that can lead to negative regulatory scrutiny. Balancing these concerns required a system that prioritized fairness and ethical business practices together with engaged players and distributors.

The twofold challenges of maintaining compliance and trust in an industry often scrutinized for MLM structures and ensuring an exceptional gaming experience made it difficult for the company to acquire users and expand into new markets. The gaming MLM company wanted an all-in-one ready-to-launch MLM platform that can handle the challenges of both the industries without compromising on business performance.

When the gaming MLM business approached us, we analyzed their need to develop a comprehensive solution that ensures maximum security and transparency across all business operations.

Navigating the crossroads with innovation and compliance

The Research and Development team at Epixel MLM Software were quick to identify the market pulse and formed a core product development team with AI and Blockchain experts to develop a well-grounded solution that can address the challenges and take the gaming MLM business towards growth and success.

The next generation features for gaming MLM with AI and Blockchain

Compliance, security and customer acquisition stayed on priority and the result was a tailored and advanced MLM platform for the gaming industry.

Compliance management system

Every process of the gaming MLM business had to be compliant with the policies of regulatory bodies in the US (FTC, SEC, CCPA) and Europe (UCPD, GDPR, Consumer Rights Directive). Gaming laws vary by region within the continents and some countries impose strict restrictions on virtual economies, reward-based models, and in-game purchases. We had to ensure that the business model aligned with both MLM and gaming regulations in these regions.

The automated compliance management system was set up to monitor compliance violations and ensure alignment across all regions of operation. The system auto-aligns itself to the changes in regulations in multiple jurisdictions. Compliance related to data privacy and financial security ensures that all transactions, commission structures and recruitment processes align with regional legal requirements. This is expected to reduce compliance risks by 90%.

Smart contract-based commission system

The blockchain-backed commission system gives the business and its users full transparency in payouts and rewards. The decentralized technology ensures that every commission is verifiable to eliminate doubts of manipulation or errors. The improved accuracy and on-time payments were set to increase distributor trust by 85%.

Gamified engagement and retention system

User engagement and retention was yet another concern that had to be dealt with strategically. The platform was built with an adaptive game progression model that rewards players for recruitment and skill-based achievements and gameplay milestones. The feature reduced dependency on recruitment revenue and was intended to increase player retention rates by 70%.

AI-driven lead conversion

AI-powered lead generation system applies predictive analytics to identify quality leads. The leads are then assigned scores based on various preconfigured attributes and segmented to ensure faster conversions.

Automated onboarding module

The onboarding process was improved with an automated onboarding module with a streamlined registration process and personalized training. The process was expected to cut short administrative expenses by 70%.

Secure payment gateway with fraud detection

All MLM and gaming transactions were encrypted with a multi-layered security system built on a decentralized blockchain architecture. The system had a high security system that alerted admins on potential fraud or policy violations. The payment system supported multiple currencies and payment methods and complied with regional restrictions on virtual currencies. Fraud detection algorithms were built to reduce transaction-related disputes by 75%.

Mobile optimization

Players and distributors can view their accounts, commissions, and gaming progress with a unified mobile-first interface. The feature was designed to improve mobile engagement by 65% within the first quarter.

Navigating the crossroads with innovation and compliance

Success impact of Blockchain and AI in gaming MLM business

The implementation of Epixel MLM Software developed for the MLM gaming business improved user engagement and business efficiency. Blockchain-powered smart contracts established a trust-based multi-level marketing model for the business with assurance in consistent revenue and sustainable network expansion.

Reduced compliance risks

The compliance management module reduced compliance risks and violations through continuous monitoring across the regions where the company operates. The company expected to see a 90% reduction in regulatory compliance risks.

Improved distributor trust and motivation

The smart contract-based commission management system made timely commission payouts with great transparency and improved accuracy. The company aimed to achieve an 85% increase in distributor trust due to transparent blockchain-based payouts.

The fraud detection system was forecasted to bring down payment-related disputes by 75% and promised increased distributor confidence in the payout process.

User engagement and retention

The company did not wish to focus on recruitment-driven revenue. They needed a consistent and ethical approach to revenue generation. We implemented the earning-with-playing model to engage players and retain them with game-based incentives.

Leaderboards, referral campaigns and competitive milestones favored player interests and brought in new members. The suite of features intended to improve engagement and retention rates of distributors and players by 70% through various earning and gameplay models.

Efficient onboarding process

Faster enrollments and personalized training improved onboarding efficiency at an expected rate of 60%. The simplified registration process and Single Sign-On option allowed players to play and earn seamlessly without multiple login requirements.

Real-time accessibility to data and transactions

The players and distributors could easily oversee their commissions and achievements with their mobile devices. This improved the convenience of managing their business for distributors and presented the players with an exceptional gaming experience. The feature was projected to bring a 65% increase in mobile platform engagement.

At the crossroads of change: Challenges and solutions

We were solely focused on creating an innovative solution that could address the complexities surging within the gaming and MLM industries. We did face a few challenges through development and implementation of the platform in the gaming MLM business. However, our priority remained a successful implementation without disrupting business operations.

Resistance to adoption

Many users were reluctant to adopt the new system fearing the technical complexity involved. We used a phased implementation strategy with necessary training and support sessions to ensure a smooth transition. This was expected to bring forth an adoption rate of 92% within three months.

Ensuring system stability

The gaming MLM business couldn’t afford an interruption in its operations across the US and Europe. We had promised zero disruption to its users during our implementation process. For this, we integrated cloud-based scalability and real-time monitoring tools which focused on maintaining a 99.9% uptime even during peak gaming and transaction periods.

Maintaining competitiveness in the market

Gaming and MLM, two concepts that efficiently complement each other, yet staying in demand is often challenging. AI-driven market analysis now helps the company adapt its gaming features and MLM strategies to ensure steady growth and relevance in the competitive gaming industry.

International payments and compliance

The complications involved in handling in-game currency, microtransactions, and multi-currency commission payouts were another major challenge we faced during the feature development process. Many governments have imposed regulations on loot boxes and virtual transactions to prevent financial exploitation. At the same time, ensuring that MLM commission structures remained transparent and aligned to the compliance laws of operating regions was also important.

Automated compliance management system and industry-standard payment system ensured that the business was safe from financial and legal risks.

Expected Results

Reduction in regulatory compliance risks

90%

Increase in distributor confidence

85%

Improvement in player retention

70%

Improvement in onboarding efficiency

60%

Reduction in payment-related disputes

75%

Increased mobile platform engagement

65%

Reduced administrative expenses

70%