MLM Commission Software

MLM commission software is a specialized tool designed to manage and automate all the commission calculations and payouts in a multilevel marketing business. This developed tool simplifies all the complex calculations and distribution of rewards to the participants in an MLM business plan. It also analyzes the performance to distribute the compensation to the participants as per their performance level.

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What is compensation in multi-level marketing?

The compensation in a multi-level marketing business scheme is the reward received by distributors for their efforts to increase the growth of the network as well as boost the sale of the product or service in the MLM plan. The compensation is evaluated by various factors such as sales commission, goal conversions, rank configurations, and many others. The compensation plan may vary depending on the requirements of the organization. The more objectives in a plan will have more income avenues.

What does MLM commission software offer?

It offers a plethora of benefits for the customers as well as teh distributors. The distributors in the network of any MLM business can easily track and analyze the compensation. The software offers the following features:

  • Commission calculation – The automation feature of the software calculates and determines the commission of a distributor after analyzing their performance, sales volume, team structure, and level of downline distributors.  
  • Payout processing – The payout process displays all the information about the traction. The distributors will be able to track the transaction. It also generates the amount being distributed and provides an option to choose methods of payment such as checks, direct deposit, or e-wallet. 
  • Automated payment – The software can be configured to receive the payment on a timely basis per se on a weekly, monthly, or quarterly basis. The software specifies the exact amount to be distributed in the selected time frame. 

How is compensation awarded to participants?

The compensation varies from one multi-level marketing plan to another. It also depends upon the criterion set by the specific organization. Some basic compensation schemes are:

  • Sponsor bonus: Almost every MLM organization works on the recruitment process. Therefore, one of the basic compensation methods is to receive a percentage of the commission from the recruitment of a downline member.
  • Matching bonus: A distributor is entitled to receive a percentage of commission from the sales generated by the downline member whom she/he personally sponsored.
  • Rank advancement bonus: When a distributor promotes to a higher level. The organization awards a specified amount of bonus for his/her effort. This bonus may vary from one organization to another.

In addition to these, there are several other compensation methods including a fast start bonus, leadership bonus, and other rewards as per the multi-level marketing plan. 


  • The commission helps to motivate the distributors and recruiters to further boost their progress to receive lavish benefits from MLM plans
  • It helps to generate income through multiple avenues.
  • The commission strategy may help the distributors to engage in the business model – where they continue to develop personal growth and humane skills.
  • The software eases all the payment processes including commission calculating, distributing, and payout mechanisms.