MLM Software Buyer’s Guide
A definitive guide to technology platforms in multilevel marketing
Think of a business that doesn’t use software to run. Even the simplest of trades require technology.
Admit it! Every business, big or small, requires technology.
It does not mean just replacing the paper works or saving time or speeding up your business. It’s way above that.
Software platforms have traveled, far and wide, evolving on the way, with new and innovative technologies prepping them to transform whatever they are connected to. In the case of MLM, software companies have innovated length and breadth of their skills to create resourceful and power-packed platforms that can take the load.
In an industry with infinite possibilities and the same amount of challenges, technology solutions should rise way above expectations.
Let’s dwell deeper into the intricacies and innovations related to MLM software and how it is transforming network marketing businesses.
So, the first question,
What is MLM software?
MLM is a business that is vast and requires extensive resources to handle.
MLM or multi-level marketing software empowers MLM organizations with technology solutions to address the challenges they face in their network marketing business.
MLM software platform takes the burden off the organization’s shoulders by simplifying a whole bunch of tasks that otherwise would be strenuous for administrators—right from onboarding distributors and customers to long-term retention.
Advanced software platforms help make the business processes compliant to regulations by designated authorities such as FTC, DSSRC, etc. It keeps your MLM system up-to-date with new guidelines, regulations, or compliance standards set by the organization or the industry.
Features packed in a ready-to-launch MLM software
Just as vast as the business is, the software too is conceptualized with complexity in mind. It doesn’t just serve one part of the business but encompasses all possible areas that include distributors, commissions, bonuses, ecommerce, shipping, security, etc.
MLM software platforms integrate various MLM compensation plans, remodeling them to best fit the needs of the business.
Most MLM software platforms are customizable and MLM organizations can choose their package from the list of available features that are in compliance with their business requirements.
Here are the most common features that come integrated with standard MLM software.
MLM compensation plans
The way how businesses are structured in multilevel marketing, MLM compensation plans have a good role to play in the making. A specific MLM compensation plan once adopted can be remolded to suit a business requirement based on their expected profitability ratio.
Keeping a check on the compensation plan regularly helps MLM organizations detect any defects that may hinder the course of their business.
Common compensation plans in MLM are
Two legged plan where each member can have only two direct downlines. Commissions are paid based on weaker leg sales volume. Binary plan fosters teamwork and encourages balanced growth.
The plan with a fixed structure allows members to sponsor only limited number of downlines on a fixed length and width. Matrix MLM plan encourages collaboration and maximizes earnings.
The plan allows members to expand their network only on a single frontline level. All the downlines are limitlessly placed in one level under each sponsor. Unilevel MLM plan has a simplified structure that ensures easy management and transparency within the network.
This MLM compensation structure emphasizes leadership development and distributor growth through rank advancements. Once the distributors achieve the set rank, they can break away from their upline and form their own independent teams direclty under the admin.
In a party MLM plan, consultants host product parties to demonstrate and sell products directly to consumers. This creates a social and interactive environment fostering product engagement for both sellers and buyers.
Members are placed on a board like structure, the length and width of which is determined by the company. Once a distributor fills a board, they get a higher position on the next board leading to higher commissions and rank advancements.
Members are placed in different levels known as generations. Each generation consists of both customers and distributors. Mostly beneficial to ecommerce businesses, the generation MLM plan offer distributors retail profits for both customer and distributor purchase.
Downline members are placed in a single vertical line structure with unlimited levels. Also known as single leg plan and linear plan, monoline MLM plan is simple to understand and easy to earn.
The beauty of an MLM software is that a single software can be restructured to any compensation plan anytime during the course of your business journey. There is no need for repurchase.
Commissions and bonuses
Commissions and bonuses are the nuts and bolts of every network marketing business. An MLM software ensures that this is properly greased and maintained in good shape.
MLM organizations can create, modify or manage commissions and bonuses according to the plans they choose. They can either choose an MLM software that comes integrated with an MLM commission calculator or integrate it into their existing platform to ensure real-time accurate payouts to their distributors.
Back office features
MLM platforms come with features for all user roles, be it admin, distributor, or customer. One software fits all. The back office features are set for different user roles through alternative log-in options.
Designed for the purpose of each user role, these technology platforms customize themselves to meet the requirements of individual users.
When there is no doubt that MLM software eases the task of a distributor to manage their business and customers, it also helps them enhance their skills with training and self-development modules.
The MLM platform can be structured to deliver distributor tasks, set goals for them, and train them on each of their skills eventually making them good sales leaders in the marketplace.
The part and parcel of every business, an online store ensures the successful establishment of businesses beyond borders. It makes sure that the success of a business is not location-dependent.
MLM software platforms come with an integrated ecommerce module from where entrepreneurs and distributors can manage their online store and inventory. It also allows businesses to integrate popular platforms such as Shopify, WooCommerce, Magento, etc to build their own estore.
MLM software platforms equip distributors with a bundle of advanced promotional tools that could be leveraged to sharpen their odds of success in the marketplace. Some of the common tools that come with standard MLM software include
Promotional landing pages
Distributors can download sales reports, downline reports, performance reports, etc in the formats of their choice. These reports help them self-evaluate their performance as well as their downline teams.
Report generation can be done on every minute detail of the MLM business such as payout reports, commission statements, rank history, plan-specific reports such as carry forward history, left leg sales, right leg sales, etc. They can also set preferences to automatically generate reports for a specified time period with the specified filtering criteria.
Distributor training tools
Business admin can directly assess the performance of individual distributors and provide them with personalized training modules. A well-equipped MLM software comes with a set of e-learning modules and materials for your distributors including basic training, learning, and certifications. These modules can be sent to them within the MLM platform itself.
Most MLM software comes with a distributor media center where they can access training videos, brochures, product catalogs, flyers, and other business plan presentations. An easily accessible content management system can help them with the information they need to enhance their skills.
It’s quite a lot of work when it comes to the business admin. Managing the whole business with its complexities is no easy task. With so much weight to the role, the admin must have a customizable and user-friendly interface in place for the smooth running of business operations.
An MLM software gives admins the sole proprietorship to manage the business with the software. Admin has the right to edit, change or delete any information on the MLM platform such as website information, member information, package management, report generation, etc. The business admin can also restructure the compensation plans and modify commissions and payouts.
Admin can also generate revenue or turnover reports, distributor reports, sales reports, etc to suit their purpose. These reports can be downloaded in various formats with various filtering options.
It is quite expected of an advanced MLM platform to deliver insights on how well the business is performing and how well it will do in the future. These insights could then be leveraged to build an actionable plan to make modifications to the business strategies if the need arises.
The intelligent business insights are delivered straight onto an MLM software dashboard for quick attention. The software will analyze factors such as demographics, geographical information, and sales and expense statistics of distributors and turn them into insights that would help the lot in proactive decision making.
For a business to grow it must expand. Establishing the range of a network marketing business can be managed well with MLM software that complies with the law and policies of that particular region.
Most MLM platforms come with internationalization features that include multilingual, multicurrency, and multiwallet options to suit customers in different regions. Admin can set packages and compensations depending on the country of existence.
While the above features complete a standard MLM software, there is more to it. An open-ended MLM software can be integrated with APIs of your choice to enhance your business performance.
Popular payment gateways, ecommerce modules, accounting, tax, and logistics integrations can be incorporated into the MLM software to enhance the performance of diversified tasks in your MLM business.
Third-party integrations are an easy and cost-effective way to facilitate business development.
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Types of MLM software
Multi-level marketing has a diverse set of compensation plans each requiring its own level of customization and configuration. Bonuses, commissions, and the structure itself vary from one another. This demands tailored MLM software solutions for each MLM compensation plan.
Let’s analyze the diverse MLM software options available in the industry.
Built on a binary MLM plan, this MLM software has the most sophisticated features for network management, payout management, compensation plan management, etc. Binary MLM software empower businesses to optimize and manage all MLM processes.
Integrated with the specifics of a matrix MLM plan, the platform supports the rigid compensation structure with customizable options for all MLM software features. Matrix MLM software can help businesses efficiently manage compensations, distributors, and customers.
Unilevel MLM software is exclusively designed to handle the complexities of a unilevel compensation plan. The MLM platform streamlines business processes like commission calculations, distributor training, lead generation, sales prospecting, etc.
Board MLM software automates and manages MLM business processes operating on a board MLM plan. Including features like distributor management, commission tracking, and customer engagement tools, this MLM platform help businesses meet market demands and competition.
Developed for monoline MLM businesses, the scalable MLM platform includes real-time reporting, user-friendly navigation, customizable dashboards, comprehensive genealogy management system, and accurate commission payouts.
MLM companies employing generation MLM plan can leverage the potential of a generation MLM software to manage tedious tasks like tracking sales, monitoring distributor performance across various generations, compensation performance, and ensuring customer satisfaction.
Designed to meet the unique requirements of a stairstep MLM plan, the MLM platform help businesses establish successfully in the global markets with out-of-the-box internationalization features and an automated compliance monitoring system.
With many choices left open, choosing the right one contributes to the sustainability of your MLM business. Always do your research before implementing a technology solution. Well-researched and curated guides like the binary MLM software buyer’s guide might help you understand the various intricacies involved, making your decision making process easier.
Top 10 challenges encountered by MLM businesses
What do you think are the constant challenges faced in an MLM business? Challenges that make distributors and entrepreneurs stumble down the business lane alike?
On the surface when customer acquisition and retention may be listed as the main concerns distributor onboarding, engagement, and retention challenges are the ones that make an MLM entrepreneur’s life hard, and solving these challenges are the primary objective of MLM software platforms.
Getting the right leads fit for business is the basic problem every network marketer faces. An advanced lead generation module can solve this problem of finding and filtering qualified leads for you.
Even when you have a thousand leads with you, turning them into prospects counts in determining the success of your marketing efforts. A structured and scientific sales prospecting process can ensure that you spend your time on the right ones.
Researches show that there is a 99% chance that your new recruits will soon become inactive or fail without appropriate onboarding in place. Nurturing and enhancing distributor skills in the early stages of their development journey will have a long-lasting impact on your network marketing business.
You cannot expect your distributors to nail the markets as soon as they are on board. Without proper training not only will their attempts go futile but it will adversely impact the brand image too well.
Take the burden off your distributors’ shoulders by automating tedious business processes. Introducing marketing automation in your network marketing business can lighten your distributor efforts, boost their productivity, and save you costs.
Survival of your distributors in this dog-eat-dog world is tough without the right tools and training. Equipping them with sales enablement tools is a good thing but it is also important to give them hands-on experience to leverage the potential of these tools.
Happy distributors make happy customers. Hence keeping your distributors energized and motivated is key to reducing attrition rates both for distributors and customers.
Integrating gamification, rewards and loyalty programs, and personality development modules can help keep them rejuvenated and refreshed.
Customer acquisition and retention
MLM companies lose money more in customer acquisition than in retention. Increasing the lifetime value of customers is important for the success of the business. MLM software platforms help companies elevate their brand value by engaging and enhancing customers with a hyper-personalized brand experience.
The herculean task in every MLM business, commission and bonus payout management, if not done correctly can tarnish the brand image in the eyes of your distributors. Accurate and timely commission payouts can be automated on an MLM platform saving you time and worry.
Ecommerce and store management
The powerhouse of today’s business, ecommerce platforms integrated into MLM software can attract customers even when the traditional direct sales model poses restrictions.
So, overcoming these challenges will be the soul and focus of network marketing organizations. Undoubtedly!
Case studies and success stories
Read from our customers how we have been helping MLM organizations stay one step ahead of rising competition and customer expectations.
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How can MLM software help you transform your traditional MLM business
Cost-effectiveness and time-saving are two outdated reasons to decide on the implementation of software in business in today’s technology-driven world. Successful businesses bear testimonials of the transformation they have experienced with technology.
Advancing businesses with technology has now grown to an altruistic level with weightage given more to customers and prospects than ever before.
Once a network marketing business takes up a compensation plan, it cannot forever get on with it. The compensation structure, its impact on the business, and modifications needed should be constantly put to check.
MLM software makes it easier for MLM companies to switch between compensations and with predictive analytics companies can measure the impact of the change in the future.
Commission engines in the MLM systems are the super-heroes that make your calculations of 1-2-3s easy and hassle-free.
These standalone systems can be integrated into your existing MLM software for accurate and error-free payouts. Advancements in technology have granted commission engines the potential to predict the sustainability of your business on the basis of your payouts.
In thousands or millions or billions, scalable MLM platforms can bear the load your growth thrusts upon. These software platforms are intelligently designed to scale itself to the needs of your growing business.
In today’s changing society, security is not attributed only to making payments. With identity theft and increasing fraud, the demand for a fully sealed and secured MLM platform is more important than ever.
MLM software platform comes with international and industry-compliant standards like PCI DSS, CCPA, GDPR, etc to ensure data security and privacy.
MLM software serves as an all-in-one solution for onboarding, training, engaging, and overseeing the growth of all of your distributors. These technology platforms come with these modules integrated or MLM companies can request the service of a specific module at any time.
Unlike the traditional direct selling way of one-on-one relationship building with customers, technologically advanced MLM software can elevate your direct selling business to an international level through an ecommerce store.
The platform makes it easy to manage customers and your online business alike. With an ecommerce store, you get to interact directly with your customers. Internationalization features like multicurrency, multilingual support, and region-specific tax and compliance features in the MLM platforms allow you to expand your reach beyond borders.
MLM software powered by Business Intelligence is quick to catch the rise and fall of your business. It delivers actionable insights that make your decision-making process easier and more effective.
A good technology partner is undoubtedly the one that keeps you going. They stand by you constantly monitoring and maintaining your platform to avoid pitfalls. MLM software are resilient platforms that can be customized to meet each and every demand of your network marketing business anytime and anywhere.
A clean and clear accounting of the business processes, be it profits, sales, or revenue, help earn the trust and loyalty of your distributors. MLM software helps you establish an organizational openness that allows free and unrestricted access to knowledge and information to your distributors and customers.
The mainstay of developing businesses, customers, and their preferences is all that matters, today and in the years to come. MLM software helps you measure the intensity of your customer's emotions towards your brand through automatically run surveys and research.
Today, these technology platforms empower MLM companies to learn more about their potential markets, competitors, and changing customer trends and preferences.
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MLM software buyer’s checklist
In today’s competitive landscape, from toothbrushes to tortillas to trucks everything is bought after reviewing each and every minute detail. When these are given so much consideration, how much should you consider before buying software to run your business?
We would advise you to at least consider the basic factors before opting for any MLM software or do consult with an expert.
Scalable - Is it efficient enough to accommodate your growing business needs?
Reliable - Is it accurate enough to manage your payouts?
Feasible - Is it easy to comprehend and apply for your distributors with minimum technical expertise?
Flexible - To what extent can it be modified with advanced technology integrations to improve functionality?
Affordable - Is it worth paying for?
The decision is yours to make. Making the wise one will determine how far you will travel among the competition.
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