To launch a successful network marketing (MLM) company, a great business idea and high-quality product are not enough. It’s crucial to develop MLM software that automates routine tasks, simplifies business management, and boosts the productivity of your partners. But how to create an MLM website that supports and even accelerates the growth of your company? Let’s break it down step by step.
Features of the MLM business model
Network marketing (MLM) is a business model characterized by the sale of products through independent distributors instead of traditional sales channels. These distributors handle promotion and sales independently, earning commissions as compensation.
Thus, the profit of an MLM company is generated by distributors who sell products or services and recruit new partners. The income of MLM businesses also depends on the chosen monetization systems, which can include:
1. Product sales: Distributors sell products and earn commissions based on the value of goods sold. This allows companies to avoid hiring employees, renting office space, and paying certain taxes.
2. Initial investments: New distributors joining the MLM platform purchase a starter kit containing product samples and training materials.
3. Membership fees: Fees for becoming an MLM partner, granting access to webinars, product discounts, and other benefits.
4. Subscriptions: Regular payments by participants for access to CRM systems, training centers, and other tools for efficiently managing their network structure.
Regardless of the monetization methods chosen, MLM entrepreneurs often face challenges in managing sales tracking, distributor performance evaluation, and commission calculations. Therefore, specialized MLM software development is essential for effectively managing a network marketing business.
Advantages of MLM software
Global automation of business processes and innovative software in the field of network marketing enhances productivity and saves significant resources. Specialized software represents a unique platform — an MLM website — that provides businesses with numerous advantages:
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convenient viewing of the distributor network at all levels of the hierarchy;
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automated calculation of commissions to network partners, accurate accounting of income and payments;
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optimized management of ordering processes and control of inventory levels;
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systematization and reliable storage of data about customers, their preferences and purchase history in an electronic database;
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quick access to in-depth analytics for making informed management decisions;
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simplified online training and support for partners through a corporate learning management system;
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efficient task planning, setting collective goals and tracking their implementation;
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facilitating the purchase process through the availability of an online catalog and various payment methods.
Reliable MLM website for your business
A robust MLM website is a multifunctional platform designed to optimize management, sales, and commissions. Distributors use the platform to track their sales, tasks, and earnings, while administrators can manage orders, transactions, users, and website content from the back office.
Based on the core functionality of network marketing websites, five key modules of MLM platforms can be identified:
1. E-commerce
This module allows clients to find the company’s products or sales representatives and submit applications to become a distributor. The E-commerce feature is integrated with the back office for accurate commission calculations and includes a catalog of available products, product search, shopping cart, and customer and partner registration.
2. Partner profile
Distributors' personal accounts enable them to efficiently manage their customer base and orders, monitor income, and interact with their team. This module includes a dashboard with sales statistics, a profile with personal information, a commission calculator, a task list, a CRM system, and other tools.
3. Learning space
Introducing new partners to the company, its mission, and products, as well as developing their customer acquisition skills, significantly impacts sales growth. Integrating a learning module into your MLM platform allows for systematic and controlled training processes. You can add training videos or interactive lessons, introduce tests to assess knowledge, and maintain a leaderboard to boost distributor motivation.
4. Referral program management
Network marketing companies sometimes engage affiliate partners to increase traffic or perform other actions in line with a referral program. These partners place referral links on their websites or social media and earn commissions for the traffic or sales generated through their promotions. MLM platforms integrate tools that automatically track traffic brought in by affiliate partners and calculate their commissions.
5. Administration
This module manages various aspects of MLM business operations, including website content, setting key performance indicators (KPIs) for distributors, creating training programs, and monitoring sales. Administration functionality includes up-to-date information on KPIs, commission plan settings, payment method management, partner registration, push notification creation, and access to a wide range of reports.
Key Steps to how to create an MLM website
To obtain a software solution that will help your network marketing business grow successfully, prepare a detailed development plan that includes the following steps:
1. Defining the required functionality
There are many ready-made MLM platforms on the market, but they often fail to meet the unique structure and functionality needs of your project. As a result, costly adjustments and integrations may be required, which might not always integrate well with the primary solution. Therefore, it is essential to decide which functionality you want in your MLM website before choosing a pre-built platform or reaching out to IT contractors.
2. Formulating requirements
Your development team needs a clear understanding of your future MLM website. To achieve this, prepare a detailed specification document. The standard method for conveying the client's vision to the development team is through a Software Requirements Specification (SRS) document. An SRS helps precisely estimate the workload and development costs.
3. Website design
Creating the design and layout of your MLM website before programming provides a clear visualization of its final look and helps build a user-friendly interface. For this, you can hire a web designer or approach a specialized MLM software development company. At FlawlessMLM, we create attractive mockups to visualize MLM platforms before the final development stage.
4. MLM website development
You have the option to either purchase a ready-made MLM platform or use the services of an IT contractor. While pre-built platforms may appear more cost-effective, they can pose challenges in customization and integration with other tools. Moreover, pre-built solutions often lack comprehensive documentation, complicating their maintenance and increasing costs. Partnering with a specialized IT team allows you to develop a reliable MLM platform tailored to your business needs, with the flexibility to expand its functionality as your MLM business scales. We also provide ongoing support for developed projects throughout their lifecycle.
5. Launching the MLM platform
It can be challenging to define all required functionality at the initial stage of development. Therefore, it's advisable to start by creating a minimum viable product (MVP) version of the MLM website. After implementing and testing the MVP, you'll identify areas needing improvement. This approach ensures a gradual enhancement of your software, ultimately resulting in a high-performance MLM platform.
Summary
In conclusion, specialized MLM software is one of the key factors for success in the network marketing industry. To optimize all business processes and provide convenience for both partners and clients, it is essential to develop an MLM website that not only performs technical functions but also addresses the unique needs of your MLM company. This approach lays a solid foundation for the sustainable growth of your network marketing business in the long term.
