Role Of MLM Software In Building Stronger Network Marketing Teams

Importance Of MLM Software For Managing Network Marketing Teams

Marketing is the bedrock on which any businesses thrive and when it comes to Multi-level marketing, MLM in short, there is not much of a difference. However, the task of managing network marketing teams has always been tough.

To address this issue, MLM software was introduced and now it has become a prerequisite to own one for all MLM companies to function seamlessly. Fortunately, there is an influx of MLM software in the market, and the selection can be done based on organizational requirements.

Why MLM Software Is Essential For Managing Successful Network Marketing Teams?

First, let us decode the MLM process in simple terms. Multi-level marketing is a process where an individual act as an independent distributor. The distributor then hires other distributors and sells the MLM company’s products and services directly to consumers. The network of these independent distributors helps the MLM company to generate revenue.

Why MLM Software Is Essential For Managing Successful Network Marketing Teams

In this article, we aim to provide you with the core aspects of Multi Level Marketing, and the features of MLM software that make it a unitary choice for managing marketing teams. We would have a closer look at the concept of Multi-Level Marketing, analyze the MLM software, and go through the essential criteria and features as well. 

Multi-Level Marketing – A Closer Look

We had a basic idea about Multi-level marketing in the previous section however there is much more than meets the eye. Multi-level marketing has become quite popular and more legitimate over the years. Today, direct sales companies employ the strategy to sell their products and services. 

In MLM, the business relies heavily on sales to generate revenue. Individuals are brought into the business and then tasked with selling the company’s products and services to others, including family and friends. The participants are also encouraged to recruit other participants into the business.

A percentage of the commission of the product sold by the recruits is received by the participant who had recruited them. The cycle continues until there are hundreds or even thousands of participants. The participants at all levels receive some form of commission. As long as MLM company’s products get sold, revenue increases for everybody who participates in the business. 

MLM is often criticized for having glimpses of pyramid schemes. The fact of the matter is pyramid schemes are fraudulent and rely on the hollow recruitment of people where no products or services are sold. For that matter, it is quite easy to call out. Contrary to that in the MLM model, genuine sales happen, and revenue is generated and shared between participants. 

MLM Software – How Does It Help?

MLM companies now benefit from modern automation and digitization made possible by MLM software. It supports MLMs in deploying new marketing strategies and gives the network a strong, digitally managed architecture.

MLM software provides automated solutions for managing network marketing companies. It helps in building and maintaining stronger relationships with distributors.

MLM software helps to steer forward the sales and marketing process of direct sales companies and distributors. It has features to assist with lead generation, marketing, customer management, inventory, and distribution. MLM companies make use of this system to formulate a marketing strategy.

MLM software automates mundane processes, generate brilliant insights, and supplies sophisticated tools to manage all MLM-related operations. This helps in contributing to the development of an effective marketing sales force.  

Essential Criteria For MLM Software

The preliminary objective of any MLM software is to assist with the marketing strategy put forth by the MLM company by providing the most relevant features. An MLM software should qualify itself on four of the essential criteria such as functionality, scalability, maintainability, and reliability that determine the efficiency of the software. 

  • Functionality – This is all about how well the software realizes its purpose to suit the business demands with accuracy.
  • Scalability – It deals with the agility of the software to showcase a steady performance in an environment of increasing users or demand requests.
  • Maintainability – It tells us the level of stability the software displays to constant modifications that are made to improve performance or extend its functionality. 
  • Reliability – It is regarding the capability of the software to maintain a steady level of performance under the given conditions for a promised period. 

Features Of MLM Software

In this section, we deal with the 10 most basic features of any MLM software and how it helps us to transform our businesses.

An MLM software should have a comprehensive set of features to benefit any network marketing business. These features do play an important role in making MLM software an indispensable entity for companies to control their businesses. 

  • Automatic Payment Processing – The most important feature of an MLM business is payment processing. An MLM software should have an easy-to-use and secure payment system. All major MLM companies follow a genuine High-yield investment program (HYIP) for integrating their business process on the web with the help of MLM software. 
  • E-commerce Integration – E-commerce is accessing products and services by companies and customers online by using electronic devices. The most important feature of any online business software is E-commerce integration. MLM software also belongs to that list. E-commerce integration would surely help you get all benefits of online purchases and services. 
  • Compensation Management – Compensation Management is a tedious task that can be made simple by using MLM software. Basic compensation models can be customized to make a hybrid compensation structure. 
  • Commission Calculator – The Commission Calculator feature allows MLM businesses to make precise calculations on commissions and bonuses. An MLM software that has this robust feature increases the profitability and sustainability of the business.
  • Predictive Analytics – The Predictive tool provides a far-sighted approach and predicts the future of the business by comparing the current performance through constant analysis. Actionable insights are delivered right in the dashboard so that you never miss the trend.
  • Genealogy tree – The Genealogy tree gives a birds-eye view of the business that includes all the relevant details about the hierarchy and organizational structure and all the financial transactions. It can give full details of the assets and the manpower the business has deployed.  
  • Distributor tools – The distributor tool is a prerequisite for MLM software that enables the distributors to do day-to-day activities both effectively and effortlessly. Most of the daily tasks like generating reports, content management, and raising tickets are automated for ease of work.
  • Administrative Back Office – The MLM software makes it possible for the Business administrator to manage the entire online system in a single platform. The person in charge can edit website information, add new distributors, and fully control financial transactions. 
  • Security and Compliance – Security and compliance are paramount for any business that handles customers’ sensitive information and for the same reason should have top-notch security for their databases. For this reason, the MLM software should incorporate security standards that are up-to-date and on par with international standards.
  • Third-Party API Integration – The MLM software integrates with third-party APIs and various open-source software and delivers seamless working.

There are also other advanced features and services available in MLM software these days that helps business houses to better manage their affairs. 


In this article, we went through the concept of Multi-level marketing and witness how MLM software can help Direct sales companies in its many functionalities.

Also, we had an overview of the essential criteria for MLM software and explored the list of basic features. The software does have advanced features inducted into it that could make marketing the products and services a lot easier. 

We have gone through the various aspects of the software in the previous sections and got a hang of its functions. In the end, it can be said that MLM software has a lot of potential, and let us hope it would evolve more to the changing times. 

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