Network Marketing Software: Terms You Should Know About

network marketing software terms you shoul know about

Multilevel marketing is a rewarding endeavor – one that promises unprecedented growth and profits. But managing an MLM business is no easy feat. After all, there are hundreds of individual members or distributors that need to be managed, nurtured, and motivated to funnel in more sales. 

Furthermore, other aspects like commissions, order processing, sales tracking, etc. need precise handling too. Thankfully, MLM software could handle most of the work involved in the network marketing business. From network management to commission calculation, the MLM software makes things easy for MLM companies. 

That seems like a lot right, particularly if you are a neophyte in the MLM segment. Don’t worry, we have compiled this lucid guide to help you understand the MLM terms you must know to effectively tread the space and manage things easily. And at the center of our discussion will be MLM software – the powerhouse of MLM business.

What is Network Marketing Software?

You might have heard the term software. It’s a special program that runs on a computer and is designed to handle specific tasks. Say, for example, video editing software, etc. Similarly, the MLM software is a specially designed utility, specifically for handling MLM processes. 

Consequently, the MLM software assists you in running your network marketing business. It helps you with everything – distributor management, inventory, sales, transactions, commissions, and more. 

It’s possible to run an MLM business with the MLM software. However, the rapid expansion of the network, the multiple components involved, and the hassle of accurate compensation calculation and distribution make it quite challenging and error-prone. MLM software allows you to automate the many tasks involved which saves you a lot of time. 

MLM System

The multi-level marketing system is a unique business model. It diverges from traditional selling by the fact that salespeople are not only compensated for their efforts. They also receive commissions for the efforts made by members they added to the network. This creates a hierarchical structure with multiple levels. Each member can actively recruit new ones and contribute to the growth of the entire network. Therefore, the MLM system is fueled by individual people and heavily relies on their efforts to sell products and grow.

A typical MLM system consists of the following elements;

  • The MLM Software: To efficiently handle all the different processes involved in MLM.
  • A Compensation Plan: To define how members and distributors will be rewarded for their efforts.
  • Independent Distributors: The members who join the MLM company, sell its products, and recruit new members.
  • A network hierarchy – To visualize members’ position in the network.

Direct Selling Software

Direct Selling Software

In MLM you might often come across the term – direct selling software. It’s a software solution that enables salespeople to track and manage their sales, profit, and expenses. Incidentally, direct selling software is equipped with tools and features that enable members and distributors to function more efficiently within the MLM framework. 

Here are the comments of a direct selling software;

  • Distributors Management – The software helps direct selling companies track and manage their distributors. It allows them to monitor their sales activities, performance, and the revenue generated by each member. 
  • Order Processing – Direct selling software automated the order processing. It helps customers place orders with relative ease, ensuring better order management and smooth transactions. 
  • Marketing and Promotional Tools – Direct selling software helps members run effective marketing campaigns to derive more sales. For example, direct selling software could integrate with email marketing tools to facilitate marketing campaigns or outreach efforts via emails. 
  • Communication Tools – Effective communication is the key to success in the direct selling business. Consequently, quality direct-selling software always includes robust communication tools to facilitate seamless collaboration between team members. 

Multi-Level Marketing Platform

A multi-level marketing platform is a technology-assisted platform that supports MLM operations. It’s a specialized software solution that comprises essential tools and features to effectively manage different network marketing activities. Consequently, the Multi-Level-Marketing platform can handle sales, recruitment, distributors, downlines, hierarchy visualization, and more;

Here’s what a Multi-Level-Marketing platform consists of;

  • Features for compensation plan management
  • Toolkit for Sales and Order Processing
  • E-commerce integration to promote online sales
  • Reporting and analytics features to track performance

MLM Solution

An MLM solution could be a package of systems that consist of essential tools, software, and services tailored to address the various aspects of MLM business. Besides sales and distributor management, MLM business also includes back-office operations, accounts, data management, and more. MLM companies apply a set of solutions and a comprehensive framework to effectively handle these essential processes. The MLM solution thus represents the entire ecosystem of various tools that collectively run the whole MLM workflow

Also Read: Essential Skills For Network Marketing Success


In conclusion, MLM software or direct selling software serves as a technological foundation on which MLM businesses stand. Therefore, to succeed in the network marketing segment, you need to understand these MLM terms and know how to implement them in your work processes. It will help you streamline your MLM operations and handle the network more efficiently.  Ultimately you will be able to achieve better results regarding sales, member recruitment and overall business growth.

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