What is MLM Software? – MLM Software Capabilities
You Need: Pay Commissions, Manage Structure, CRM

How MLM Software Works For Pay Commissions

MLM software is important for keeping track of your compensation structure and how you pay commissions. It helps distributors and sales companies throughout the marketing and sales process by assisting with lead generation, customer management, marketing, inventory, distribution, and MLM pay commissions.

Software is a key component to running a successful MLM business. It accurately stores direct sales made by individual salespeople like yourself and the commissions granted to those you have recruited. MLM software is also an e-commerce tool that provides sales tax and records management.

In order to qualify as authentic software in the MLM industry, a product must:

  • Support referral processes
  • Provide analytical MLM commissions data
  • Include features that provide MLM strategies
  • Provide MLM commission tracking tools
  • Include support for customer and technical assistance

Watch as Jerry Explains Paying Commissions, Managing Structure & CRM

What is MLM Software for Management Structure?

Software that runs and keeps track of your MLM commissions is vital to those just entering the field. The type of management structure that a start-up MLM company chooses often dictates their success. It’s important to select the right structure from the onset because changing compensation structures midstream can be difficult once a company is established.

When considering MLM for e-commerce business, you need software that is compatible with the four main compensation structures. While it’s important to know which one maximizes your business model, it’s also crucial to partner with a software company that specializes in the following four compensation structures:

  • Binary Compensation Structure: The binary compensation structure works well for MLM start-up companies who are looking to attract both full and part-time recruits. This is a very popular type of structure for business builders and new distributors who have left other multi-level marketing companies.
  • Forced Matrix Compensation Structure: This type of compensation structure is set by a predetermined matrix based on the width and depth of distributors sponsoring individuals and the levels they pay downline. This structure is good for companies with distributors that may be willing to transition from a selling position to a training role.
  • Uni-Level Compensation Structure: A Uni-Level structure is one of the easiest and best ways for new recruits to start their MLM business because it only goes down one level. Start-up companies who are looking for part-time distributors can benefit from this compensation structure.
  • Breakaway Compensation Structure: This is a generation MLM compensation program where distributors are paid commissions based on the volume of the group downline and their sales leader’s downline. The Breakaway structure is often used by business builders and companies with a full-time sales force.


How Does MLM Software Work For CRM?

MLM software for CRM works on platforms designed to manage sales, marketing, support, and customer service for MLM businesses to work more efficiently. Businesses partnered with a software company supporting CRM systems can enhance their customer relationships and analyze customer interactions.


Learn More about Paying Commissions, Managing Your Structure and CRM.

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Video Transcription

What is MLM Software?

What is MLM software? Hi everyone. I’m Jerry Reynolds, President of Trinity Software Incorporated, and that is the question we’re going to answer today. So as we look at the chart behind me, what we’re going to talk about is what are the base capabilities of any MLM software that you buy? Whether you buy our package, Firestorm, or someone else’s, everyone should be able to address these major areas of functionality.

Processing and Paying Commissions
The first we’re going to talk about is obvious. Based on our prior videos, you now understand the structure and how commissions are paid. The software package that you buy has to be able to pay those commissions in a way that’s easy for you to manage and that’s easy for your field to determine that they were paid correctly. So transparency in the way that the system pays, i.e. the detail that’s on their commission check, is really important. And it’s something you really gotta watch for, because not all systems provide that level of detail that’s required for the people in the field to understand it. It will save you a lot of customer service phone calls and a lot of upset people in the field if they can read their commission check and understand how they got paid. That data should also be available in their back office – we’ll talk about that in just a second.

Structure Compatibility
The next thing, it should be fairly obvious, is the ability to manage whichever structure type you’re using. Now we talked about them in one of our prior videos, about the different types of structures that are supported. And whether it’s uni-level, multilevel, binary, force matrix, whatever – the software system that you buy should have the ability to manage that structure because as people enroll into it, people make mistakes sometimes. So the software should give you an easy way and transparent way to manage the position in the tree once someone enrolls. If they made a mistake, they can call your customer service department and request to move. And if the software allows it, it’s a fairly simple process to do.

Customer Relationship Management
Next thing, CRM – Customer Relationship Management. This is really an area of functionality that encompasses a lot of things. It’s a customer service portal, so that your customer, your CSRs can actually access all the information about one of your members in the field or a customer who has purchased from you with the touch of a button. And they should be able to dive in as deep as they need to go to answer the question of the person on the phone. This is critical to the, your relationship to the customer, is one of the most valuable things you have. It’s one of the most valuable assets as a company and you want to protect it and be able to service that customer in a great way.