MLM (Multi Level Marketing) is also known as network marketing or direct selling. It is a business model in which the enterprise uses commissioned agents to sell the products directly to the customers and to recruit more agents. Many times, customers become agents when like the products and sell them to other customers for a commission.
MLM business model is being successfully followed by various top brands in various parts of the world. The enterprises do not invest in advertisements or promotions. They depend on the agents to take the products to prospective customers. Agents use word of the mouth technique, plan small informal events, and expand their customer circle by meeting new people.
When an agent recruits other agents, the person is eligible for a share of the commission on the products sold by those recruited. The agents are arranged in a hierarchy of networks to calculate the commission amount. These agents are not employees of the brand and do not earn salaries. They can be employees of other businesses and still be agents.
The main aim of following the MLM business model is to maximize the profits by generating as many sales as possible. Agents are awarded special gifts when they reach targets to encourage them to perform well.
To manage the agents, customers, network, commissions, and referrals, enterprises will need to use special software. MLM Software is unique because it is different from other business systems. Just as network marketing is a different business model, the software too has been designed to suit it.
The software works as a complete business system that helps enterprises in keeping track of everything, right from managing inventory to handling sales on the website and calculating agent commissions. Being highly flexible software, it can be scaled as per the needs of the business. That makes it easy for an enterprise of any business volume to install and customize the software for their business.
The various service providers who sell the software also offer hosting services. Enterprises can host the software on remote servers or can install it on on-premises servers. This makes it easy for enterprises as they don’t have to purchase new hardware to use the software solution.
Benefits of Using Multi Level Marketing Software
The software streamlines the business by connecting all departments of the enterprise on a single platform.
The software can be accessed through any device with an internet connection and a web browser. Employees and agents can work from remote locations with ease.
MLM software can be integrated with other software solutions to include payment gateways, SMS integrations, inventory management, customer management, and many more.
The software is stable, reliable, and extensible. It is also easy to use by employees and agents.
The company that provides the software helps in training the employees to work on the business system.
Enterprises can use any of the numerous compensation plans widely used by other network marketing companies or they can create their own compensation plan.
The software can be used to build the website for the business and replicate the website for each agent to sell the products to a wider spectrum of the audience.
There is no limit to the customization of the software. From themes to layouts to languages to reports, just about everything can be changed to match the business needs.
The company provides 24*7 technical support to install, manage, and upgrade the software regularly. Enterprises can rely on the company to handle the glitches and errors that might arise when using the MLM software solution.