Best Multi-level Marketing (MLM) Software

Multi-Level Marketing is where representatives refer services/products to brands they represent.

It is a form of an infinitesimal loop to recruit people who’ll buy and sell your product and, in turn, recruit more people.

There are two ways to go about business – either go and sell the product yourself or hire people to buy and sell the product who’d be further recruiting more people to do the same. The existing employees become brand ambassadors and bring in more business, quickening the pace of success. MLM software does this precisely in helping you calculate the commissions for your multi-level marketing efforts.

Today, when businesses' shelf-life has reduced from a decade to nearly four years, businesses need to adopt software and systems that’ll bring more customers, as is done by online Multi-Level Marketing software.

Industry-leading multi-level marketing software platforms give you the right edge to stay competitive in the fast-paced marketplace with features like automated commission management, distributor management, customer support, and more.

This guide will explore different aspects of MLM software, how it helps businesses grow their customer base, and provide a list of the top 5 multi-level marketing software. 

What Is Multi-level Marketing (MLM) Software?

Multi-level marketing software, or MLM software, is a technology platform that helps direct sales companies establish their MLM business more efficiently. Multi-level marketing software helps automate complex network marketing processes, including but not limited to compensation plan management, commission payments, distributor management, and customer relationship management.

MLM management software makes it easier to manage, promote, and monitor their multi-level marketing business across all aspects, from onboarding new distributors to monitoring brand performance in the market. Software for MLM businesses can even deliver intelligent business insights based on performance data to help companies optimize their decision-making process.

What Is Network Marketing?

Network marketing, otherwise referred to as multi-level marketing, is a direct selling business model that involves a network of individuals promoting and selling products. These individual distributors often leverage their close circle of influence to market products and further, build their network to create a strong sales chain.

This direct selling business model involves person-to-person sales and also encourages independent distributors to make sales as well as build their network with new members.

Network marketing, also referred to as multi-level marketing, operates in multiple tiers or levels. When a distributor refers a new distributor to the network, the referral becomes the distributor’s downline, and the referring distributor is hereafter referred to as upline or sponsor. As the level grows, the earning potential of the distributor also increases.

This direct sales model acknowledges individual distributor efforts with commissions and bonuses—both of which are tied to the company's profit goals. MLM companies also offer training and sales enablement programs for their distributor teams to empower them to sell better.

The multi-level marketing model or MLM model works based on different compensation plan structures and is one of the effective marketing models for direct selling business. Businesses can choose a compensation plan based on profitability expectations and business goals. However, MLM businesses need to be watchful while choosing the right plan that also aligns with the industry's compliance standards.

Benefits of Using the Best MLM Software for Your MLM Business

The best Multi-level marketing software provides many benefits to companies in the domain of MLM business management. It helps businesses manage complex compensation structures and millions of distributors from a single platform. Additionally, there are many other benefits MLM businesses can enjoy by employing MLM system software.

1. Multiple compensation plans

   The software offers multiple MLM compensation plan integrations based on the organization's business requirements. Each plan has a distinct structure, commissions, and bonuses.
   Some of the most popular MLM compensation plans include

   • Binary MLM plan

   • Unilevel MLM plan

   • Matrix MLM plan

   • Generation MLM plan

   • Board MLM plan

   • Stairstep breakaway MLM plan

   • Monoline MLM plan

   • Hybrid MLM plan

   Network marketing software also lets companies choose a single compensation plan or combine multiple plans to create a hybrid one that suits their organizational goals.
   It also offers businesses an overview of the plan performance through tools like MLM calculators that deliver insights into the plan's profitability in their business.

2. Track distributor performance

   The best multilevel marketing software lets businesses track distributor performance, indicating their highs and lows, making it easier for the organization to improve its training and engagement strategies.
   Multi-level marketing software also helps distributors analyze their individual performance and the performance of their teams. It comes equipped with various filtering options to track distributor performance based on various performance metrics such as sales conversions, number of referrals, active downlines, training completion rate, etc.

3. Accurate tracking of sales and commissions

   An advanced multi-level marketing software ensures accurate payouts in real-time. The automated payout feature lets businesses track sales and commissions on time without errors or overpayments.
   It also lets businesses and distributors track their individual sales and commissions on a comprehensive dashboard. Distributors can visualize their earnings and sales goals. Admins and distributors can also generate and download sales and commission reports, ensuring transparency in the payout process.
   State-of-the-art multi-level marketing software is also capable of forecasting sales and commissions, which helps distributors know how much they will earn during a specific time period.

4. Inventory management

   Advanced network marketing platforms have high-end features to track and manage product stock across multiple warehouses. The built-in inventory management feature supports businesses to identify product demands and dead stock, reducing surpluses and tracking product expiry.
   An inventory management module integrated into multi-level marketing software also assists in order management with options to track payments, monitor shipments, and manage all purchase-related activities.

5. Scheduling is easier

   MLM or network marketing software is a  boon while managing your business and scheduling tasks. It helps to manage customer accounts and track your sales activities to concentrate more on your business activities and work towards profitability. Good network marketing or direct selling software will get you all these features and the interface under one roof so that you don't have to switch between systems now and then.

6. Streamlined business operations

   Multi-level Software is designed keeping in mind the robust nature of MLM business. The high-level features ensure a high level of collaboration and coordination between the distributors, franchisees, admin, sales, and customers. These provide the customer with a streamlined system that generates more client value by eliminating redundancies.

7. Seamless integration with payment gateway

   The software is designed keeping in mind the changing trends of buying a product. The majority of these people today prefer shopping online. This feature integrates with multiple payment gateways to give a seamless payment management system.

Key Features of the Best MLM (Multi-level Marketing) Software

The best Multi-level marketing software is equipped with many features to assist network marketing companies in better managing their business. Listed below are the prime features of standard network marketing software.

1. Commission management

   The best MLM software lets businesses track and manage commissions offering real-time visibility into the organization’s payout process. An efficient commission management system offers flexibility and ensures transparency in the payout process. It also gives businesses a forecasted view of commissions through commission analytics.
   Business admins can add or modify commissions based on changing needs and compensation plans. They can approve or reject commission withdrawal requests and manage the flow of commissions.
   These platforms can generate insightful commission analytics that help business owners to modify their compensation plans to suit their profitability goals. The error detection and auto rollback features ensure accurate payouts and reduce overpayments.

2. Distributor management

   Multi-level marketing software is an adept MLM tool that helps business admins efficiently manage their distributor teams. It simplifies the onboarding process and ensures an effective and interactive training process. Additionally, the best network marketing software presents a distributor dashboard with the following details, making it easier for admins and sponsors to comprehensively understand individual distributor performance.

   • Personal and team sales

   • Commissions earned

   • Rank achievements

   • Number of downlines

   • Active and inactive distributors

   • Goal completions

   • Training completions

3. Payment processing

   The payment processing feature in multi-level marketing software is built to support all types of payments—bank wire transfers, debit cards, credit cards, cryptocurrency, etc. The software also supports international payments with multiple currencies.
   The platform also allows for integrating different payment gateways as required by the MLM software company to ensure faster and more secure payment processing. The payments are also secured with PCI DSS compliance and stringent security measures to secure customer data.

4. Order management

   Orders placed by distributors or their customers are processed and managed through the order management system built into the network marketing software. The intelligent MLM system for customer-centric MLM companies manages the lifecycle of customer orders from order placement to successful delivery. It processes, tracks, and fulfills orders and collects customer feedback at the end of each order delivery.

   The order management system is designed to provide the utmost customer satisfaction through faster fulfillment processes and safer payments.

5. Genealogy management

   This MLM-specific feature is a visual tool that presents a 360-degree view of the organizational hierarchy. In the MLM system software, the genealogy is represented in a family tree model with business admin at the top and the top leaders and distributors arranged in multiple levels based on the hierarchy.
   An advanced multi-level marketing software also gives an individual view of distributors with just a hover over their profiles. This displays their basic profile, number of downlines, sales, and rank.
   The genealogy management feature assists business admins in efficiently managing sponsors, downlines, referrals, enrolment packages, etc. Business admins can also onboard new distributors straight from the genealogy tree itself.

6. Reporting and analytics

   MLM software comes with the best reporting and analytics techniques to assist MLM businesses in decision-making. It also helps MLM businesses identify customer behavioral patterns and market trends and helps analyze sales performance to improve operational efficiency.
   These MLM systems make it easier for admins and distributors to generate reports based on diverse metrics such as commissions earned, sales generated, team performance, and business revenue.
   BI-powered multi-level marketing software company leverages the power of advanced analytics to transform organizational data into actionable insights that help businesses in proactive decision-making.

7. Training

   Distributor training is a crucial aspect that determines the success of MLM businesses.
   Upskilling distributors on various sales enablement techniques and marketing activities translates into higher productivity and increased conversion rates. Network marketing software has an exclusive training system for distributors to get them on the right track.
   Distributor training starts from onboarding and forms the base of long-term engagement and retention. In order to achieve this, the software is integrated with an advanced LMS that hosts interactive training modules and courses for distributors. The MLM training module has add-on features like gamification to expedite distributor engagement and completion rates.

8. Device compatibility

   Multi-level marketing software is designed to perform uniformly across all devices, making it convenient for distributors and admins to access it from anywhere, anytime. The multi-level marketing software performs with zero downtime across all devices and under all circumstances.

9. Sales reports

   The report-generating feature in the software helps generate accurate sales reports on team performance, individual distributor performance, and the organizational whole.
   Sales reports can be generated by distributors, sponsors, and business admins to get a clear understanding of individual sales, goal completion status, and rank levels. This gives salesforce an insight into their performance and strategies needed to improvise the same.

Who Uses Multi-level Marketing (MLM) Software?

Multi-level marketing software is employed mainly by entrepreneurs to manage and promote their businesses. The software for network marketing can be deployed for different user roles with selective access privileges for each user.

1. System Administrators/Business Admin

   In the multi-level marketing model, the admin occupies the topmost position in the company with major access privileges in the software. MLM system software privileges for admin include payout management, plan configuration, distributor management, and inventory management.

2. Distributors

   Distributors use MLM system software to reach a wider audience and to organize their work. Distributors can launch and manage marketing campaigns across channels from a single platform. They can generate personalized referral links and replicated websites from the software platform and use it to expedite their customer outreach activities.
   Multi-level marketing software helps distributors track their personal performance levels and delivers insights for improvement. The genealogy feature in the multilevel marketing software allows distributors easy access to their teams.

3. Sponsors

   Sponsors are essentially distributors who introduce new members into the MLM system. They leverage the possibilities of MLM software to fortify their teams and monitor their sales. Multilevel marketing software company offers sponsors channels to support their downline teams in real-time. Sponsor-specific dashboards in the software give them a 360-degree view of their downline performance highlighting individual highs and lows. That way, sponsors can devise personalized strategies to upskill their downlines.

Key considerations for selecting MLM software

Before purchasing MLM software for your business, you must consider crucial factors. Not all software can handle the challenges in your business. So while choosing one, consider the factors below to ensure the software complements your business requirements.

1. Industry expertise

   The best possible way to assess the quality of the software is to analyze the expertise of the Network Marketing software company in the domains of technology, industry, and your product market. The best multilevel marketing software company has better industry knowledge and incorporates it into its product development process to help customers conquer the market.

2. Scalability

   The right and the best multilevel marketing software should be capable of accommodating any number of users with zero downtime. Scalable software offers businesses higher agility and an improved user experience. This, in turn, helps businesses cut down on their maintenance costs.

3. User-friendly interface

   A simplified user interface contributes to increased user satisfaction. Customer-focused companies opt for a system that can simplify complex business processes. An MLM system software with a user-friendly interface can help in faster onboarding and a hassle-free purchase experience for its users.

4. Feedbacks

   A Network Marketing software with a real-time feedback system helps companies improve their sales and marketing strategies to attract new customers and retain existing ones. An automated feedback system can be integrated into every purchase to collect customer feedback.

5. eCommerce integration

   Network marketing software with eCommerce integration can host your MLM business online, unlocking growth opportunities across the online space. It can considerably reduce cart abandonment rates and boost upselling and cross-selling opportunities to boost revenue.
   Other benefits of integrating eCommerce include a real-time customer support module, centralized inventory management, simplified UI, and smarter shopping processes that engage and encourage customers to repeat purchases.

6. Legal consultation

   One of the biggest challenges the MLM industry faces now is tough scrutiny and legal penalizations. This is often due to poor compliance and compensation standards.
   Some leading MLM software tool development companies mitigate this issue with an automated compliance monitoring system. However, consultation with industry experts in the initial phase is highly recommended before purchasing and launching your multi-level marketing software.

7. Identify the challenges you are facing

   You should know all the possible loopholes where the MLM tools can win. Jot down all the tasks you want your software to do. In other words, list your expectations from the software you will buy. Concentrate on what you” need” rather than “want.”

8. Calculate the budget

   No one else but you have a better idea about how much you can afford to spend on multi-level marketing software, including implementation and support. Apart from the software cost, you must make a proper budget for software updates and other maintenance services.

Top 5 Multi-Level Marketing (MLM) Tools Comparison

We have curated a list of the best MLM software companies in the market that are already transforming businesses worldwide.

Name	Free Trial	Demo	Starting Price
Epixel MLM Software	7 Days	Yes	$550
Infinite MLM Software	14 Days	Yes	$750
ARM MLM Software	7 Days	Yes	$999
Cloud MLM Software	7 Days	Yes	$750
Freedom	Not available	Not available	$2500/month

1. Epixel MLM Software

Epixel MLM software has been delivering customizable and customer-centric software solutions to the network marketing industry for more than a decade. It is committed to ensuring quality and uninterrupted service and support for its customers. Their software is designed to meet the needs of businesses of all sizes. They deliver many services ranging from MLM consulting to distributor training to various MLM-related software development services.

Pricing

• Starting price: $550
• Free trial: Available

2. Infinite MLM Software

Updated with the latest technology and high-end features, Infinite MLM Software is a Network Marketing software company that delivers cutting-edge technology for MLM businesses with their technical experience and industry expertise. Infinite MLM Software is a user-friendly software with powerful integration features to let MLM businesses extend the scope of their business.

Pricing

• Starting price: $750
• Free trial: Available    

3. ARM MLM Software

ARM MLM Software is an expert in developing framework-based MLM system software with advanced features that help MLM businesses expand their network. The highly customizable software has an easily adaptable user interface on a high-security framework.

Pricing

• Starting price: $999
• Free trial: Available

4. Cloud MLM Software

Cloud MLM Software delivers the industry-best multi-level marketing software with both self-hosting and cloud-hosting options. The software has an intuitive dashboard and a user-friendly interface to let businesses handle their operations more efficiently.

Pricing

• Starting price: $750
• Free trial: Available

5. Freedom

Freedom MLM Software by Bydesign Technologies is a futuristic platform that empowers companies to manage their distributor network, payouts, and inventory. The white-label platform allows MLM organizations to deliver personalized distributor and customer experiences. 

Pricing

• Starting price: $2500 per month
• Free trial: Not Available

Challenges Faced in Using Network Marketing Software

Even the most futuristic and innovative network marketing software can pose a tough challenge for MLM companies. The following are some commonly listed challenges users face while using the best MLM software.

1. Complexity

   The complex user interface and process flow make it difficult for users to understand and use the system in the initial phase. It requires the right amount of training and a user-friendly interface to overcome the problem.

2. Compliance

   Multi-level marketing software has to stay current with the industry norms and regulations to avoid companies from getting penalized. Legal, regulatory, and data compliance are mandatory for businesses like network marketing which are under constant scrutiny. A small glitch in the network marketing software can prove fatal for the entire organization losing revenue and trust among their customers and their distributor network.

3. Security

   With growing cyber threats and attacks, organizations must prioritize the ability of the software to secure its business-critical assets. While customer security falls in the first place, safeguarding the entire system contributes to brand trust and credibility. Hence it is important to have an advanced threat intelligence framework that mitigates threats and improves brand reliability.

4. Customization

   One of the best things about Multi-level marketing software is its ability to be flexible to suit its customer requirements. It can increase the efficiency and productivity of the business yet can pose a serious challenge. Customization can incur expenses and might not deliver the expected results. Improper requirement analysis can result in delivery delays and inefficient business processes.

Market Trends Relevant to MLM Software

The multi-level marketing industry has witnessed tremendous transformations across technology, market, and customer trends. However, technology trends have always proved crucial to the success and development of MLM software development companies worldwide.

1. Artificial intelligence (AI) to aid network marketing

   Artificial intelligence is taking multi-level marketing companies to newer growth dimensions. AI has the ability to take businesses right into the future by analyzing data and deriving decisions based on analytics. This reliable technique assists businesses in the decision-making process, helping them get past their competitors.
   The finest application of AI in a network marketing business is in the domain of customer support. AI-powered chatbots are transforming the customer experience. Natural Language Processing (NLP) helps multilevel marketing software synthesize customer sentiments by interacting with them accordingly. A customer support system powered by AI automates the ticketing system with real-time assistance and issue resolution.
   AI-powered MLM system software can accelerate a customer-centric culture in the network marketing industry through innovative customer-focused strategies. AI makes it possible for businesses to analyze customer preferences and interests and deliver personalized services to customers, thus accelerating customer experience and lifetime value. Gamification powered by AI in multi-level marketing software can take the distributor training process and customer engagement to the next level. Incorporating AI improves course engagements and completion rates. Gamified elements such as spin wheels, loyalty programs, and daily challenges multiply customer engagement and improve brand relationships.

2. Cloud-based software

   Most multi-level marketing software companies are increasingly adopting cloud computing to extend the scalability and security of their products. Cloud-based MLM system software is cost-effective and increases business productivity. Promising improved efficiency, flexibility, and accessibility, cloud-based software lets businesses, distributors, and customers access the software from anywhere, with any device at any time.
   Cloud-based software scales with the growing demands of multi-level marketing companies by supporting increasing distributor numbers and expediting workloads. It has a proven track record for data security and risk mitigation.

3. Mobile phones will hold their position tight

   The MLM software industry will be driven by the trend toward frictionless mobile experiences as mobile domination continues among the millennials. The craze of using mobile phones for everything will force even the most successful MLM companies to innovate around their mobile strategy. Millennials are not alone in the race; in fact, 87% of consumers now prefer using a smartphone over personal computers to consume all their digital data.
   The industry will continue to innovate new strategies at a full pace to remain competitive in the Amazon age.

4. Big data and analytics

   MLM companies that don't measure analytics will likely lose their precious customers. Not only customers but re-sellers as well. The industry should use analytics to improve its customer experience. Having valuable data will also provide insight into market conditions.
   Keep track of your customer's buying patterns, plus measure your distributor retention rate using network marketing software empowered with big data and analytics. It will help keep an eagle's eye view and help you make decisions based on the whole picture rather than pieces. Analytics will also help you find distributors at risk of churning out and what should be done to keep them away from the company.

5. Social media will beat traditional marketing

   Almost everyone in the world uses the internet. Many of these online users have at least one social media account. Social media will help you reach out to more customers, widening your brand's reach and creating a target market. It builds a strong reputation, establishes credibility, and showcases expertise.
   It’s the right strategy to use social media to advance MLM marketing; however, remember not to make it your whole marketing strategy.

6. MLM apps will continue to grow

   A lot of MLM companies these days are using apps to conduct business. An online MLM software or app will make direct sellers more visible and readily available to distributors and customers.
   The constant engagement will remind them of what needs to be done. They will be motivated to work harder, which will increase their productivity and will ultimately increase conversion rates.

Software and Services Related to Multi-level Marketing (MLM) Software

The extensibility of MLM software allows for the integration of various software and services that complement the growth of network marketing businesses. Let’s look into the most relevant software and services related to multi-level marketing software.

1. E-commerce platforms

   A crucial element in taking the business to the online space, e-commerce platforms allow business expansion beyond borders. Multi-level software can be integrated with popular e-commerce platforms such as Shopify, WooCommerce, or WordPress, or a custom e-commerce store can be built into the platform.
   MLM e-commerce platforms can also give customers a convenient and engaging shopping experience.

2. Affiliate marketing programs

   Multi-level marketing companies can double their conversions and their network with efficient affiliate marketing programs. Some MLM software companies integrate it into the standard software package, while others offer it as an add-on package.
   The software lets businesses launch affiliate marketing campaigns, monitor and track affiliates, and assess and improve affiliate performance with advanced affiliate marketing strategies.

3. CRM software

   Each and every MLM system software has a pre-built CRM that works as a centralized data repository aligning processes and systems within the platform. MLM entrepreneurs can choose to integrate industry-popular CRM platforms like Zoho, Salesforce, etc., or design a tailor-made CRM as per their business requirements.
   CRM software acts as a bridge between sales and marketing processes drawing in every possible data for the improvement of various business processes. CRM software built exclusively for multi-level marketing can help expand the network and better manage customers with automated marketing and customer support processes.

4. Payment gateways

   In order to ensure safer payments and customer data security, MLM system software integrates industry-standard payment gateways that are faster, reliable, and consistent. These high-end encryption software systems, once integrated into the software, simplify the payment process, thereby improving customer trust and experience.
   The MLM e-commerce store ensures faster checkouts with multiple transaction types. It also allows businesses to expand into international markets with multiple currency support.

5. Training and consulting services

   MLM consulting services provide a complete assessment of your business plan. Taking into consideration the legal and regulatory aspects, they also help companies draft an industry-compliant compensation plan. They look into the generated business idea and advise companies on a suitable compensation plan that complements their business expectations. MLM consultant services help in consulting, planning, and designing an MLM business with the right plan and right strategies.
   Training services, on the other hand, assist established companies to upskill their salesforce to increase conversion rates. Companies employ training services for training their distributors, employees, and customers. Distributors are trained right from onboarding on organizational goals and values, products, various sales and marketing techniques, and customer relationship management to efficiently establish their network marketing career.
   Leading software companies have these services combined with their standalone and the best MLM system software.

6. Lead generation tools

   Lead generation tools help businesses attract, engage and convert quality leads through various techniques. These tools have the potential to analyze visitor behavior and preferences; this data is then leveraged to design targeted marketing campaigns. These automated MLM tools also help companies save time and resources by automating the lead generation and management process.
   Advanced lead generation tools have reporting and analytics features to monitor and optimize the performance of campaigns and other related marketing activities. Employing techniques like predictive lead scoring, these lead generation tools funnel quality leads into the CRM, filtering them based on preset criteria. This helps distributors save time by concentrating only on quality leads.

The Cost of Multi-level Marketing Software

The cost of multi-level marketing software is highly dependent on the customization requirements. The cost of a standard MLM system software package can range anywhere from $550 and higher, depending on the built-in features and functionalities. Each add-on feature may cost extra based on the software provider.

Conclusion

Employing software that perfectly fits your business requirements calls for ample research. Here we have done the research for you to help you make a healthy choice for your business. This guide has been compiled through meticulous industry research and will help you take the next step toward running your network marketing business with the right and the best MLM software.