Essential MLM software features to transform your network marketing business

Essential MLM software features to transform your network marketing business

Minu Chandran
Updated on 26 November 2021
6 min read

Multi-level marketing business is vast in the sense that it accommodates numerous distributors, customers, and sales leaders—all being an integral part of the venture. Their individual contributions build-up to the collective success of the business. No doubt!

Measuring success is important, so is retaining these dandling crowd. They need to be nurtured, motivated, and retained to ensure smooth functioning and to accelerate the success flow.

How can MLM businesses ensure this?

By inventing new strategies?

While strategies are human-made, implementing these strategies successfully needs technological intervention. This is where MLM software comes to play.

An MLM software can help organizations manage individual aspects of their business— compensation plans, products, distributors, payouts, customer satisfaction, market and industry analysis, the list is never complete.

A fully capable MLM software also gets into the micro aspects of these individual levels and ensures smooth functioning by greasing out the friction. By and large, MLM software empowers direct selling organizations to focus more on their customers rather than spending time on day-to-day business processes.

MLM software comes loaded with features to overcome the numerous hurdles faced by the organization. Overcoming them and evolving successfully in today’s competitive landscape is the real challenge.

Challenges faced by MLM companies

7 must-qualify criteria for an MLM software

MLM software is graded based on various criteria. It is these criteria that MLM organizations must consider while choosing an MLM software —quite a big decision to make!


Determines how well the software realizes its purpose to suit the business demands with accuracy.


Ability of the software to render itself to the users with a minimum level of effort and expertise.


Capacity of the software to flawlessly work in different environments with minimum changes.


Agility of the software to showcase a steady performance in an environment of increasing users or demand requests.


Level of stability the software displays to constant modifications that are made to improve performance or extend its functionality.


Ability of the software to efficiently and effectively use the available resources such as storage space and execution time.


Capability of the software to maintain a steady level of performance under the given conditions for a promised period of time. Fault tolerance and recoverability are also counted towards the reliability of software.

In Multi-level marketing, a business model with complex business processes, the software needs to rank high on each of these characteristics.

MLM software features

Let’s look into the most common MLM software features and how they can help MLM businesses transform.

1. Compensation plan management

MLM compensation plans are what make the MLM industry stand out from others. Just as diverse and vibrant concepts each of the plans are, so is its increasing level of complexity.

An MLM software eases the tedious task of managing complex compensation plans. It also lets you create, rebuild or modify a compensation plan to suit your profit goals.

You can choose from the available list of MLM plans or build yourself one!

2. Commission engine

Yet another complex process in the course of MLM business, commission and bonus calculations and payouts contribute to a wide array of possible outcomes.

  • Timely payouts motivate distributors
  • Error-free payouts help earn distributors’ trust
  • Automated payouts reduce human error and save time

MLM commission engine ensures real-time payouts across all compensation plans. You can add, edit or remove a new bonus or commission to your existing MLM compensation plan.

An advanced MLM software is geared up with commission analytics that provides MLM organizations with key insights on the profitability and sustainability of their business in the current payout structure.

3. Predictive analytics

Businesses are subject to constant changes, both positive and negative. Knowing them at the right time can help businesses heal, grow and thrive.

MLM software with predictive analytics shows the future of your business projected against your current performance through constant analysis. The platform displays actionable insights right on the dashboard so you don’t miss even the slightest detail.

Data-driven MLM platforms pull in operational data to give you granular insights on profitability, revenue, and other statistics that will help you in proactive decision making.

4. Genealogy tree

The genealogy tree in MLM displays business in all its entirety. It gives a complete visual representation of your organizational structure—distributors, their downlines, enrolment packages, total sales, total commissions paid, etc.

Team genealogy and referral genealogy are the two popular MLM tree views available; the former shows all the team members and their details and the latter displays only the referral team of a particular distributor.

More often than not, genealogy tree comes bundled with a standard MLM software package; you can also integrate genealogy software into your existing MLM system.

5. Distributor tools

A well-equipped MLM software is aimed at empowering its distributors to establish the business efficiently and effortlessly. It automates the mundane tasks of distributors giving them ample time to invest in upgrading their business skills.

The MLM platforms come equipped with an extensive range of tools designed exclusively for distributors to boost their productivity and extend their business.

  • Replicated websites
  • Generate reports
  • Omnichannel promotional tools
  • Content management systems
  • Interactive training modules
  • Support tickets

… just to name a few.

6. Administrative back office

MLM software platform comes with an admin-exclusive back office that delegates all powers to the business admin. The back office manages the entire MLM system in one online platform.

Admin can edit website information, onboard new distributors, add, delete or modify enrolment packages, or member information. They can also add or delete payment options and edit user roles.

7. Third-party API integration

Flexible MLM software lets you modify the standard system with popular third-party APIs to create a new solution that meets evolving organizational demands. These updates are quick and don’t require much time or resources to develop.

MLM organizations can integrate anything from ecommerce to chat modules through open-source APIs. Third-party integrations are done commonly for ecommerce, tax and security platforms.

8. Security and compliance standards

Salesforce and customers in most MLM businesses do not limit themselves to a few hundreds or thousands but millions. The security of their personal information is a responsibility and is shouldered by MLM companies. It is the most sensitive part of any business.

MLM Software platforms are built to maintain strict industry and regional standards such as CCPA, GDPR, PCI DSS, etc for protecting customer and distributor data.

These software platforms are built hack-proof and are secured against a wide range of security attacks. In today’s world of identity thefts and other cybercrimes, these platforms are built compliance-ready to meet the international standards of personal protection and secure payment gateways.

Explore more features

Share this article

Leave your comment

Fill up and remark your valuable comment.

4 + 2 =
Solve this simple math problem and enter the result. E.g. for 1+3, enter 4.
* All fields are required

Don't miss our next article!

This website uses browser cookies to improve user experience and analyse website traffic but never stores any sensitive information. By continuing you consent to our privacy policy.

Accept Cookies