How to create a successful MLM company: key tasks in business management

We talked about what a compensation plan should be like in the article The Best Marketing Plan for MLM Company.

To ensure the proper functioning of the bonus plan, we recommend:

Regularly review and adjust the terms of the MLM marketing plan - for example, introduce new types of bonuses to enhance the motivation of existing and potential partners.

• attract specialists who already have relevant experience and skills in the MLM field;

• implement a system to analyze the effectiveness of the compensation plan;

№2. Scaling the partner structure

People are the foundation of a strong network marketing business. The viability of the company as a whole may depend on how it attracts new distributors to its structure. Previously, we have already discussed how to attract MLM leaders, experienced partners, and newcomers to the structure, but in brief, you will need to:

• create a portrait of your target partner and, based on it, develop and modify the company's marketing promotion strategy;

• provide a variety of bonuses and loyalty programs so that everyone is engaged and finds their place in the company.

№3. Training and Qualification Improvement System

In order for distributors to show results, they must undergo appropriate training - explain the details of the marketing plan to a newcomer, discuss exemplary cases, and all sorts of small nuances that will be needed when starting a business. Our team recommends:

• create a series of educational materials, a step-by-step educational video course, and conduct real-time webinars;

• open access to the following parts of educational material only after checking the quality of studying the previous information;

• monitor the work of structural branches, track the successes of distributors, and encourage their progress;

• conduct personal coach conferences to enhance the knowledge and skills of lagging partners;

• to improve the qualifications of the most promising personnel and educate them into true leaders, followed by others.

№4. Coordinated teamwork

MLM companies unite different people with different characters, values, talents, etc., in their structure. To achieve maximum efficiency, a sponsor needs to manage the team's work in a way that allows each participant to unfold their abilities and avoid conflicts. To optimize the structure's work, we recommend:

• optimize communication channels and provide a maximally convenient toolkit for work;

• conduct corporate events where distributors will exchange experiences and share case studies;

• develop a corporate community where partners will help each other and seek advice from more competent colleagues in some aspects.

№5. Customer Relationships

To make a business thrive and scale in a competitive market, it needs to build long-term relationships with its customers and thus retain them. Essentially, an MLM company should do everything for the happiness and satisfaction of its customers, for example:

• listen to the demands of your consumers, respond to their desires, and strive to exceed their expectations;

• optimize feedback channels and provide 24/7 support through chatbots;

• Develop a reward system for customers, not just for partners;

• Continuously work on improving the brand's reputation, strengthening trust and loyalty towards it.

№6. Legal Aspect

Laws applicable to network businesses vary in different countries and regions. Failure to comply with these rules may result in punishment in the form of administrative or even criminal sanctions against the company and its founder. Therefore, if you are launching an MLM startup, scaling, or relocating your business to a new country, we recommend:

• engage a contractor to review the company's documents and provide legal support for the company's activities;

• consult with an expert on the regulatory acts of the target region, including tax and labor law;

• train partners on basic regulatory acts, laws, and standards related to network marketing and overall business management in a specific country.

№7. Security and Data Protection

Ensuring the security of all processes and data protection is one of the main tasks of any business. The preservation of both the company's material assets and intangible assets - the stability of the MLM company's platform, the continuity of work processes, the integrity of the partner structure, customer trust, etc., directly depend on this. To minimize possible risks, we recommend:

• use specialized software that provides isolation of the company's working environment from other platforms;

• install an SSL certificate on the hosting and connect services of special protection against DDoS attacks (for example, Cloudflare);

• implement two-factor authentication for financial transactions in accordance with PCI DSS standards;

• Develop a management process monitoring system to automatically track and promptly stop suspicious activity;

• Log critical parts of the project's algorithm in the blockchain.

Therefore, creating a thriving MLM company in the long run is a complex process that requires a lot of knowledge. It is better to seek help from developers who have practical experience in launching network projects and know all the "pitfalls" on the path of business development.