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Multi-level marketing (MLM) is the new gold. In fact, it has become a common go-to option for many success-oriented companies. In this article, we discuss the concept of multi-level marketing and talk about how to make the best use of an MLM platform. We also describe the use of MLM software to build a successful multi-level marketing business.

What Is Multi-Level Marketing?

Multi-level marketing (MLM) developed as early as the 1930s because of the economic crisis during those years in the US. The economy was devastated and business managers were looking for new models to rebuild the system.

A key finding was the fact that recommendations have a major effect on a customer’s purchasing decisions. If a friend or acquaintance suggests a particular product to you, you’ll be more likely to choose it over competitor products.

This laid the foundation for multi-level marketing (MLM), also known as network marketing. A company that is working from an MLM platform generates sales partners. Then it gives those sales partners the products both to test and to sell to friends and acquaintances.

Multi-level marketing (MLM) is a special form of direct sales. It is also known as network marketing (NM) or structured sales. Traditional direct sales are about selling products to end customers. When a company is operating from an MLM platform, the sale of the end product is supplemented by recruiting and motivating new members to earn money from their sales.

The MLM scheme is extendable downward and is structured as a pyramid. The ownership percentages trickle down from the top and increase with the number of sales that the seller makes.

The Principles of Managing an MLM Platform Is the Same in All Industries

Depending on the industry, a member invests in a starter package with the most important products or product training. They sell the product with direct advice, preferably at the customer’s home.

They also make it appealing for the customer to sell the products because then the customer would get their product more inexpensively. The seller could also earn money from any other incentive accrual from the MLM platform.

If the customer agrees, the seller has gained a partner. The seller benefits not only from their sales but also from the partner’s registration.

This all sounds quite simple at first. Nonetheless, operating a business from an MLM platform has its pitfalls and complexities. These challenges can be simplified by good multi-level marketing software.

Here’s How to Set up a Reputable MLM Platform

If your business is considering running a business from an MLM platform, there are salient factors you must put in place. The possibility of achieving outstanding success shouldn’t cloud your thinking and sway you from reality.

So give yourself time to think about it. Conduct adequate research and make consultations to check whether you can actually operate your business this way. Below are a few things that lead toward success for any business that operates from an MLM platform:

  • You sell products to the end consumer through a continuously growing network of employees
  • Products are of high quality
  • Prices are reasonable
  • You have invested in product development
  • You have set initial investments within reasonable limits
  • Demonstration products are reasonably priced
  • Training courses are free or inexpensive
  • You provide a buyback guarantee for the starter set and unsold goods in case of a member who steps out
  • Information brochures about products and business concepts are either free or inexpensive
  • The company sells all goods directly to the member and there is no intermediate employee level
  • You provide performance-related remuneration for all sales as well as for the sales of the new employees you recruit
  • The company provides realistic information about earning potential and the cost and time involved
  • You ensure that your business is registered

If you can’t meet several of the criteria above, curb your enthusiasm and distance yourself from the notion of operating your business from an MLM platform.

On the other hand, if your answers are mostly positive, you can get started with your network marketing business.


Ask Yourself Some Questions Before Setting up an MLM Platform

When the company audit above is complete, dive into the concept and take an entrepreneurial look at it:

  • Is there a sufficiently large sales market for my product?
  • Is the price attractive for customers?
  • What marketing plan will be simple and understandable?
  • Aside from sales, are there other avenues to give members earnings?
  • What investments do I have to make and how high is the entrepreneurial risk for me?

If you have not yet seen any stumbling blocks so far, now is the time to take a decisive look at your business. Because to be truly successful in managing MLM, there is a need for commitment.

Besides mapping out appropriate incentive systems (car, cruise, pension, insurance, and so on), most companies that operate from an MLM platform also offer motivational events. You can consider building yours, but be honest and don’t put out what you can’t keep up with.


Which Software Platform Is Best to Use for Multi-Level Marketing?

A frequently asked question about multi-level marketing is: Does a software platform for MLM exist and is it really necessary?

We have tried as much as possible to answer this question. We have also outlined a list of what MLM software should do.

Why Is an MLM Software Platform Necessary?

If you join an existing MLM company as an independent team partner, you can usually use existing software as a “co-user.” In this case, you don’t need your own software.

But if you’re building your own multi-level marketing business, things are different. With the right software, you can monitor sales partners, sales, and commissions. Either way, check out this expert opinion on MLM software.

What Should MLM Software Be Able to Do?

Anyone who works in multi-level marketing needs, above all, an overview of the sales partners and their sales because this is where the commission payments come from. Depending on the size and scope of the product range, a merchandise management system may also be an advantage. Additional functions, such as order entry, customer management, partner management for affiliate programs, and shop systems are now part of many.

What Can an MLM Software Platform Offer?

An MLM software platform can:

  • Manage sales partners
  • Generate commission statement
  • Manage inventory purchasing
  • Provide a member area
  • Maintain an affiliate program
  • Provide customer management (CRM)
  • Maintain your shop system
  • Be your call center connection
  • Be your competition manager
  • Manage subscriptions
  • Coordinate lead management
  • Provide a scheduling tool

When it comes to pricing an MLM software platform, you can either buy it outright or rent it on a monthly basis. You can obtain a quote on request.

Lean on These Suggestions to Build a Successful MLM Platform

It is certainly not impossible to build a successful MLM platform. While the risks of building a secure existence with this business model remain great, the possibilities of success are good, too.

You now understand the basics. Therefore, if you are convinced you’re ready, then you can take the plunge. But first research and choose the best MLM software platform to help you build your networking marketing business.