1-Levelware(tm): A Marketing Method
Automated Education Inc.
P.O. BOX 42284
Phoenix, AZ 85080-2284
January 27th, 1993
This document defines the latest marketing method developed
exclusively for the computer industry. As you read this, you
will hopefully see the dawn of a new wave of public
offerings from computer experts otherwise hopelessly bound
by current marketing methods and business practices beyond
their control and reach as well as a chance for YOU to
benefit regardless of your computer experience from the ever
increasing computer boom. It is time everyone can stop
watching from the sideline and start profiting.
1-Levelware(tm), in its simplest terms is a fusion of
Multi-Level Marketing and Shareware. 1-Levelware(tm) is
distributed freely as complete programs without artificial
registration incentives such as feature limitations or
expiration dates. Upon registration, the user becomes
eligible as a DISTRIBUTOR to receive monetary bonuses for
future distributors who they directly sponsors.
Registering a piece of 1-Levelware(tm) makes you a
DISTRIBUTOR for THAT 1-Levelware(tm). This is the only
method to be eligible for bonuses. Payment in full to
Automated Education Inc. must accompany the registration
form. The program register.exe is on the distribution disk
(or in the archive) to automate the proper completion of the
form. Register.exe will prompt for information and let you
validate the information about your sponsor (see Appendix A
for a glossary of terms). ONLY AUTOMATED EDUCATION INC.
CAN ACCEPT REGISTRATIONS. DISTRIBUTORS MAY NOT. NO ONE MAY
ACCEPT ANY MONETARY COMPENSATION OF ANY AMOUNT FOR THE
DISTRIBUTION OF ANY 1-LEVELWARE(tm).
Each 1-Levelware package (disk or archive) contains the following:
1. Programs and Data
2. User Documentation ( X.doc )
where X is the name of the 1-Levelware
3. Registration Form ( X.reg )
4. Registration Program ( register.exe )
5. Catalog of Current Offerings ( catalogY.AEI )
where Y is the version number and
AEI is Automated Education Inc.
6. One Page Advertisement ( X.ad )
7. 1-Levelware explanation ( 1lvlware.doc )
Several information sections appear on the registration
form. The main sections at the top are for YOUR information
and your SPONSOR'S information. Be certain that all
information is accurate.
It is very important that if you download the 1-Levelware
from a bulletin board that you provide that information.
1-Levelware distributors 'register' bulletin boards that
they upload to in order to ensure proper credit from
The computer and family information will provide Automated
Education an opportunity to forward future 1-Levelware
titles that might interest you.
There is a section to order additional 1-Levelware free of
charge. Of course the registration process is the same for
all of these titles as well.
Finally, the form provides a place to list the bulletin
boards you want to upload this 1-Levelware to. This is very
important. In the event disputes over the placement of
1-Levelware on a bulletin board or other media open to
public access arise, the existence of this 'registration'
with Automated Education will be the final evidence
A Registering Distributor will receive confirmation in the
mail after the data is processed by Automated Education.
Notification of bulletin board acceptance is given at this
same time. After such time, the new distributor is eligible
to sponsor others and receive bonuses.
Future versions will be made available to all distributors
for half of the new version's registration cost. Of course
additional bonuses can be earned distributing the new
version to NON-distributors. That is to say, EVERY
distributor has the right to purchase upgrades for half
price. Notice that a half price next release policy means
that only half as many NEW registrations are needed to
start profiting. See below for more details about BONUSES.
Sponsoring is the act of passing the complete 1-Levelware
disk or archive to someone else WHO REGISTERS AND BECOMES A
DISTRIBUTOR. People who receive 1-Levelware who have not
become distributors by registering yet are called "potential
distributors". Any distributor may sponsor anyone. Anyone
may register any 1-Levelware and in the process become a
distributor for THAT product (see below for exceptions).
POTENTIAL DISTRIBUTORS who pass along 1-Levelware give up
their right to any bonuses that may otherwise have been
awarded if they had registered. In this instance a new line
of distributors and downline is begun.
Thus, potential distributors must register, receive their
distributor status and THEN sponsor other individuals to be
eligible for bonuses.
There are no sponsorship limits. If 1 person is sponsored
the bonus will reflect such. If 500 people are sponsored,
the bonus will be 500 times greater. It is as simple as
Distributors are not limited to sponsoring people they
personally know. A distributor may upload a piece of
1-Levelware to a bulletin board WHERE IT DOES NOT EXIST YET
AFTER APPLYING FOR THAT BULLETIN BOARD WITH AUTOMATED
EDUCATION INC. Everyone who then downloads from that
bulletin board is a "potential distributor" and any bonuses
from those registrations will be paid to the distributor
responsible for getting that product onto the bulletin
board. It is that simple!
A distributor in good standing will be given the option to
upload later versions of 1-Levelware to every or any
bulletin board registered to them. This option requires the
distributor to register for the new version and expires 30
days after the new version notification is sent to the
distributor. Any older versions left remaining after the 30
day period will be replaced by Automated Education Inc. and
the original sponsoring distributor will lose the bonuses
from future registrations from that bulletin board.
Distributors operate independently from Automated Education.
They are in no way considered employees at any time. They
are not allowed to misrepresent Automated Education Inc. or
1-Levelware in any way. Breaking any of the distribution
rules as defined in this document is considered copyright
violation and will be prosecuted to the fullest extent of
Any violation terminates a distributor's status and makes
them immediately ineligible for bonuses or distributor
status for any other 1-Levelware by Automated Education Inc.
Becoming a distributor by registering is in no way implying
any promise to sponsor others. No sponsorship quotas exist
or ever will. Each distributor may participate at the level
they wish. A distributor may sponsor someone the day they
receive confirmation of their registration in the mail or 3
NO ONE, including Automated Education Inc., has the right to
pressure a distributor into sponsoring others. Any such
attempts should be reported to Automated Education Inc.
Automated Education promises to NEVER reveal the names,
addresses, other personal information or status of any
distributor to anyone (except as possibly required by law)
for any reason. Distributor's information will not be sold
as mailing lists at any time to anyone for any price...
No one may enter any 1-Levelware into any shareware catalog
or submit any 1-Levelware to any shareware company for
inclusion on any shareware disk offers of any kind without
prior written consent of Automated Education Inc. No one may
advertise in electronic or hardcopy print other than the .ad
file provided without the prior written consent of Automated
Education Inc. Automated Education reserves all copyright
protection on all of its products and all trademark
protection on the term 1-Levelware (tm).
At no time may any distributor change the name of the
archive or programs in order to upload multiple copies of
any 1-Levelware to any bulletin board or other public access
mechanism or for any other reason. This policy is enforced
by Automated Education registering bulletin boards to
A Distributor who successfully sponsors another computer
user is contributing the the success not only of that
1-Levelware product and Automated Education, but also to
this exciting new marketing method. In exchange for the
contribution, they will receive a bonus check from Automated
The check will equal the number of downline distributors
sponsored for the bonus period times 25% of the full
registration fee they paid.
That's right! One fourth of all the registration money is
SHARED with those who register.
Sally, who is a registered distributor for "The Sound
Board" tells her friend Sam about an entertaining
program she ran across. Sally describes the program.
Sam is interested in seeing it. Sally passes it to Sam.
Sam tries it on his machine. Sam likes it. Sam
registers Sound Board for $20 thus becoming a registered
Sally's bonus from the transaction for the 5 minutes of
her time is $20 * 25% = $5.
Notice that Sam may chose to sponsor others or not. SALLY
gains nothing either way because her bonus is already
secured ... hence the name, 1-LEVELware.
Of course there will be people who do not register. This is
true for shareware today. The equivalent also happens when
a distributor in a MLM signs up but never sells any product.
This is nothing new. There are people who will go as far as
to outright steal copies of software costing as little as
$10 or as much as hundreds of dollars. This is an inevitable
fact of life.
Someone may chose to not register and NOT use the
1-Levelware ever. This is a perfectly legitimate scenario.
It is when the product is used without registration when the
copyright laws have been violated. It is NOT a violation to
pass the product on to others when you yourself do not use
the product and therefore never register.
The interesting twist to 1-Levelware is that if someone
declines to register and passes it on to 5 people who
registered, the original person not only lost MONEY, but
also, they put MORE money in the pockets of the manufacturer
(in the form of unpaid bonuses... thank you very much).
A number of "incentives" have been tried during the short
history of microcomputers to limit software piracy.
Copy protection schemes devised in the 1970's and 1980's
offered a challenge to users saying "Steal THIS if you can".
The response was quick and sure. Technique after technique
was figured out, documented and made public information.
Special software was written to disable many forms of copy
protection. The protection itself created a significant
demand for the unprotected version as well as the software
to break the protection! Bad deal all around.
Nowadays enlightened manufacturers have realized that copy
protection did not solve anything. If anything it made
Today, the incentive to purchase a legal copy has shifted to
two main things:
1) Extensive and fancy documentation
2) Technical phone support
The irony of both of these is that while they are both
necessary, they are needed LESS when the product is EASY TO
USE and functions as expected! So the "better" the product,
the "worse" these incentives operate. In addition, they each
add a good deal of overhead which EVERYONE pays for in the
price although only SOME ever use the manual and far fewer
use the technical phone support.
Shareware sprung up in response to the astronomical cost of
bringing product to the market and keeping it there. The
middlemen and the money they will make from someone else's
hard work is frightening - literally. Shareware is
distributed freely by bulletin board, archive, catalog or
hand-to-hand in order to keep overhead low with the notice
that registration "is expected" or "is appreciated".
Shareware incentives range from a fully functioning version
to sleeping guilt free at night (yeah, right).
One solution to the retail nightmare facing non-software
manufacturers is Multi-Level Marketing. By this method,
people sign up to be distributors in order to sell products
and sponsor other people to become distributors who sell the
company's products and sponsor other distributors, etc. The
company supports this method in a number of ways. The main
one is attractive bonus plans that recognize the
distributors ARE the sales team and the ONLY way the product
MLM companies pay their distributors bonuses for their
downline's sales often as far as 6 levels deep (hence the
'MULTI' part of MULTI-level). This simply means Sally
sponsors Sam, who sponsors Greg, who sponsors John-Boy and
Sally gets a percentage of even John-Boy's sales (and then
some) given that a lot of (sometimes complicated) conditions
are met. The conditions usually are wrapped around selling
certain volumes of the actual product. But notice the key
element of the incentive to participate... money. Not FROM
you, but TO you.
1-Levelware combines the best of both worlds.
The MLM Method:
1) Shares the wealth with the distributors.
2) Pays more to distributors who distribute more
3) Encourages and rewards individual initiative.
4) Relys heavily on word of mouth and hand-to-hand.
5) Reduces middlemen and advertising and thus
The Shareware Method:
1) Freely distributes computer products to as many
people as possible.
2) Offers high quality computer products for less
money than traditional retail outlets supply.
3) Relys heavily on word of mouth and electronic
4) Reduces middlemen and advertising and thus
1-Levelware is an idea whose time has come. Whether you are
a computer user or a developer, you have much to gain from
participating in this computer industry marketing
revolution. REGISTER TODAY!
Questions and Answers
Q: Why not use simple shareware?
A: I am not against shareware.
You can argue all day long about the success or lack of
success of shareware. You can argue all day long about
the 'right' incentives or the 'wrong' incentives to
provide for registering.
The bottom line is that the registration and distribution
are what the manufacturer is looking for - EITHER ONE. In
the absence of one, the other will do.
Some in the world of psychology will argue that "Money is
not a motivator". Judge for yourself. Are you more
motivated by the chance to SPEND money or the chance to
MAKE money? Anyone coming across 1-Levelware has an
opportunity to financially benefit regardless of age,
social status, hobbies, lifestyle or experience.
That is NOT true for the shareware RECIPIENT. They are
asked to PAY for the software (fair) and then receive
absolutely nothing for the favor of distribution to a
Now, you tell me which method is truly SHARING,
1-Levelware or so called shareware?
Q: Why not Multi-Level Market software?
A: I am not against MLM.
There are several factors that are necessary to fuel an
honest MLM "machine".
The first is SALES VOLUME. In order to make money with
MLM, as a distributor you must sell, sell and sell some
more and sponsor more to sell who will duplicate
themselves as you have. In order for the company to pay
the bonuses many levels deep, they must raise the prices.
The usual wholesale to retail markup is 40% and there is
still plenty of money built into the wholesale price to
pay the hefty bonus plan and of course the manufacturer.
You can argue, "Sure they raise the prices but they give
the money back to the distributors". TRUE. I'm not saying
this is good or bad. I am just stating the facts.
The volume is acheived in part by selling products with a
substantial EXISTING DEMAND. If the distributor has to
CREATE demand, it is likely too much work and too
difficult for most people and therefore too difficult to
As much as I'd like to think otherwise, there is NOT a
pent up demand for any software to meet either criteria.
Software that is in big demand is sold by titan software
companies who obviously have profited greatly from the
retail system in place (else they wouldn't be titans).
They have no problem spending millions of your retail
dollars on advertising, middlemen and other overhead. Not
only are they spending your money on advertising but they
are counting on you to make them more money by telling
your friends how great their latest products are. Notice
"counting on you" does not equate to "paying you".
Which is interesting if you think about it. You are
paying them to advertise by spending that extra money
when you purchase the product, and then you are
advertising for them for free when you speak favorably
about the product to people you know. Which of course you
wouldn't have been able to do if you wouldn't have paid
them for the priviledge in the first place.
1-Levelware instead rewards your contribution the old
fashioned way... with money.
The next MLM ingredient is CONSUMABLE products. Would you
rather MLM a bar of soap or a radial tire? Another bar
of soap is needed 2 weeks from now, another tire in 3-5
years. Another computer program... maybe never.
Of course in the future, who knows? There may be droves
of people DYING to get our new programs [smile]. For now,
1-Levelware will do.
Q: Can anyone offer 1-Levelware products?
However, 1-Levelware is a trademark of Automated
Education Inc. and as such may only be used with prior
written consent. A 1-Levelware program to manage a
1-Levelware company is currently under development and
nearing commercial availability. Registration of this
specialized accounting 1-Levelware will include limited
rights to use the name 1-Levelware.
Automated Education is also taking high quality
submissions from all sources that we will market as
Q: How does that work?
A: Someone submits a FINISHED product including
documentation to our address. We evaluate the product and
accept or reject it (with reasons). If accepted, the end
distributor registration cost will be negotiated.
The author will commit via contract to:
1) Support the programs technically with bug fixes
and version upgrades.
2) Continue support for 1 year after the latest
3) Answer user's questions AT LEAST by postal mail.
Automated Education will:
1) Bundle the program and data with 1-Levelware
forms and documents into a single package
2) Make it available to the public via electronic
bulletin boards and/or catalog and/or any means
mutually approved by the author and Automated
3) Process all registrations and collect all monies
4) Send bonuses to distributors
5) Maintain all accounting information
6) Provide registration and distributor reports to
the author and
7) Mail the author a monthly check with user comments
The cost for this service is 50% of the registration fee
plus disk mailing supply, postage and handling fees (when
a disk must be mailed to fill an order for MORE
1-Levelware). The distributor gets 25%, Automated
Education gets 25%, the author gets 50%. Compare that to
the dismal response you've gotten from shareware... the
choice is clear... 50% of a lot of money is better than
100% of a little or no money. Think about it.
It is that simple. Now is the time for thousands of
worthy programs, programmers and even users to have a
fighting chance for financial success.
Automated Education, Inc.
P.O. Box 42284
Phoenix, AZ 85080-2284[email protected]