What is MLM Software? MLM software or multi-level marketing software is used to assist in the management of multi-level marketing businesses. Designed for those who are starting such businesses, it helps with everything from inventory to distribution to marketing and more.

When Should You Look for an MLM Software Provider? Design your compensations plan.

Set up your commission payment platform.

Organize payment gateways and merchant accounts (these need contractual arrangements),

Ensure compliance with the Payment Card Industry Data Security Standard (PCI DSS).

Set up your database and order processing online.

Select third-party relationships for warehousing and product shipments. You should look for an MLM software supplier 3 months before your scheduled launch. It will take at least 45-60 days to organize your online presence, legal requirements, and essential third-party integrations. This is what you need to do before launch:

What is an MLM business? A typical business model used to control and organize sales of company’s products directed from the workforce or distributors in that network. The revenue model is earned from two sides of the business in MLM, one from that of product sales and other from the compensation rewarded for the member recruitment.

Is MLM a Legitimate Business Model? Yes, MLM is legal when it follows the rules that have been written by the representing country as guidelines. If these rules are followed by an MLM organization, the business model is legitimate. FTC has provided detailed legal guidelines to follow and basically if an organization is not following such rules, it’s a pyramid model.

What Are Compensation Plans? Compensation plans are the heart of an MLM business and there are many such plans available in the industry to choose from. A compensation plan in simple terms can be defined as a marketing plan that gives the admin about how the whole business works with the criteria for earning compensations, the business architecture, package upgrades and much more.

How Long Will It Take To Launch? Realistically, working with a good MLM software provider, they should be able to get the software up and running in 1 day. If you already have a domain, they should be able to attach that domain to your software so you can at least start working on your products, your enrollment options, and everything else in your back office of the software.

What to Look for From Your MLM Software Company? What to Look for From Your MLM Software Company?

How many offices do they have?

Do they understand your compensation plan?

Did they ask you more questions than you asked them?

Dow much experience do they have?

Which is More Important: sponsoring or selling? They are both important. An army of distributors that sells nothing will produce no commissions. On the other hand, recruitment is very important in a business where 90 percent of the distributors are part-time and productivity per distributor is relatively low. A balance is the key.

Can Distributors Belong to More Than One Company? Most network marketing companies will allow you to belong to more than one company. However, most companies do restrict their distributors’ activities in promoting other companies’ opportunities and products. The most common policy allows distributors to introduce other opportunities only to individuals that they have already personally sponsored. In addition, most companies won’t let their distributors promote other opportunities or products at any company-sponsored events or activities.

How Should Distributors be Paid Their Commissions? As a startup company, the easiest way is to send your distributors a cheque. Find a company that gives you the ability to print cheques and import payment data into an accounting package like Quickbooks or Great Plains. As your company grows and your reach a level of 300-400 distributors, you need to look for an e-wallet debit card platform. If you distribute branded debit cards, every commercial transaction distributors make become an advertisement for your company.

Can We Copy Another Companies Compensation Plan? Unlike engineering designs, a compensation plan cannot gain copyright status. However, if you copy another company’s plan to the letter there is nothing to stop them taking legal action for infringement. This is not something you want to risk. You can create your own plan with less time, effort, and cost by starting from scratch designing your own structure and compensation plan requirements. By all means, take ideas from other successful companies but make sure you build a compensation plan unique to your business.

How Many Products Should You Launch With? Start with one or two products and build your base from there. When you satisfy customer needs and expectations in a particular market niche, they will ask for more products. If still in doubt, consider the how the most successful multi-level marketing companies got started. They all started with one single product and built their business from there.

What should we focus on – selling or recruitment? The primary focus of an MLM business must always be product selling. However, the focus must also exert on expanding its business with recruitment. For steady business growth, a balance must be maintained between sales and recruitment.