In the network marketing world, compensation plans form the basic structure around which the entire MLM business evolves. However, any compensation plan, be it binary, unilevel, or any other, involves complex calculations to ascertain the contributions and rewards for each member.
Manually managing the compensation could be time-consuming as well as error-prone.
What Is The Best MLM Compensation Plan Software To Boost Your Business Success?
That’s where the MLM Compensation Plan Software comes into play. It automates the entire compensation calculation process and eliminates the possibility of errors while ensuring timely distributions of payouts. That’s why a robust compensation plan software is crucial for the success of the MLM business.
In this post, we will explore the different types of MLM compensation plans. Likewise, we will also discuss the criteria to evaluate the Compensation plan software. Also, we will introduce you to the top compensation plan software available in the market.
Types Of Compensation Plans
MLM compensation plans come in various types, each with its own set of features and benefits. The most common types include:
MLM compensation plans are of different types. Each has its own set of features and benefits. Similarly, they include different compensation structures and payouts.
Here are the most common compensation plans that the majority of MLM businesses incorporate in their business model;
1. Binary Plan
The most widely used compensation plan in MLM business is the binary plan. At its most basic, the binary compensation plan involves building two downlines – the left leg and the right leg.
Benefit – The primary benefit of a binary plan is distributed to the entire downline from the down to the way up. This encourages teamwork and motivates members to add new recruits under the existing downline members. Similarly, Binary plans can be a great option for distributors who possess the ability to recruit a large number of members quickly.
2. Unilevel Plan
Next is the Unilevel Compensation Plan. In Unilevel Plan, the distributors are free to build a downline network of unlimited width.
Benefits – Since there are no restrictions on the number of members of distributors one can add on the frontline, Unilevel Plan is particularly suitable for businesses aiming for rapid expansion of the MLM network.
3. Matrix Plan
The third most common type of compensation plan is the Matrix Plan. In this plan, distributors are restricted on the number of frontline members they can have.
Each distributor is assigned a matrix or grid. Similarly, distributors earn commissions on the sales of their recruits and their recruits’ additions but up to a certain level.
Benefits – The plan encourages teamwork as the distributors can help fill the Matrix of their downline members. Consequently, the Matrix Plan is suitable for those who can recruit a large number of people over time, thereby building a massive network.
Criteria for Evaluating MLM Compensation Plan Software
Each compensation plan has its upsides and downsides. Therefore it’s essential to evaluate the viability of a compensation plan per your business needs before adopting it.
Here are the key factors you must consider before picking a compensation plan;
The ultimate goal of every business is to grow over time and achieve better revenue and profitability. But, if the compensation plan software couldn’t adjust to the expanding needs of MLM business, it could be detrimental to the overall growth of the business.
Consequently, MLM software must be scalable so that it can easily adjust to the growth rate of MLM business and accommodate a large number of distributors and members.
Each MLM business has unique requirements. Therefore, compensation plan software should be flexible enough to cater to varying needs. It’s prudent to pick an MLM software that supports multiple compensation plans.
3. Ease of Use
The MLM software you may pick might boast cutting-edge features, but if it is challenging to use, it will deter many from onboarding the platform. Consequently, you will lose big in sales, ultimately costing you customers and revenue.
Therefore, it’s crucial for compensation plan software to include an easy-to-use and intuitive interface. It will facilitate easy management of the MLM business.
4. Customization Options
The compensation plan software must offer customization and flexibility. It will ensure the software can be easily tailored to suit specific business needs and branding.
5. Reporting Capabilities
Without robust reporting, MLM companies will grapple in the dark without visibility into business performance.
Therefore, compensation plan software must include comprehensive reporting capabilities facilitating easy performance and tracking compensation.
Top 5 MLM Compensation Plan Software – Contenders In the Market
To help you further, we have compiled a list of top contenders for MLM compensation plan software after careful consideration.
Here they are;
1. Best MLM Software
Best MLM Software is a reputable vendor with a wide range of compensation plans. Besides, it also boasts robust features and excellent customer support.
However, its USP lies in its extensive use of automation to smoothen the entire process.
2. Infinite MLM Software
Infinite MLM software stands out with its scalable architecture. But its main strength comes from its various customizable plans and advanced reporting capabilities.
3. Epixel MLM Software
Epixel MLM Software boasts powerful features and a user-friendly interface.
The E-wallet feature, Multi-currency support, and real-time business insights make it worthwhile MLM software.
4. MultiSoft MLM Software
MultiSoft MLM Software is an experienced player in the MLM market. It boasts a comprehensive suite of tools and countless integrations to support MLM businesses of all sizes.
5. Cloud MLM
Cloud MLM is all about customizability and building brand identity. It supports white-label operation, plus it comes with an intuitive dashboard.
Moreover, it’s a self-hosted platform, an added advantage as it eliminates the hassle of purchasing a separate hosting.
Here is a comparison table to give you a quick overview of the top three MLM compensation plan software we have presented above:
|Binary, Matrix, Unilevel
|Customizable to multiple compensation plans
|Binary, Matrix, Unilevel, Board, Moonline, Party, etc.
|Customizable to multiple compensation plan
|Schedule Call Available
|Email and Phone Support
|Email, phone, telegram, skype
|$999 – $2200
|$1100 – $5000
In conclusion, the importance of picking top-notch compensation plans software can’t be overstated.
However, it’s essential to evaluate a compensation plan software on criteria like scalability, customization, flexibility, etc. to determine its viability for your MLM business model.
It’s the right compensation plan software that sets the foundation for success and growth enabling businesses to thrive in the competitive network marketing industry.