MLM Business and Impact of Software Failure

The failure of MLM software can cause operational as well as reputational damage to the MLM organization. Thus business admin needs to choose a stable software system to run their business. 

To build a stable MLM software system, software developers have to address all the immediate and future problems. Let's look at some of the pain points that a developer has to address in an MLM business. 

• Handling millions of users
• Complex compensation calculation
• The logical difference in the compensation calculation
• Commission payout on time
• Tracking distributor activities

An MLM business is dependent on the expansion of the distributor network. Thus an MLM company can reach millions of active customers in a short span if the business strategy is good enough to attract customers. Therefore, when building an MLM software, the capability to handle millions of users and their commission transactions is a crucial challenge. 

Compensation structure is the next factor to be considered in the development stage. Calculating commission and bonuses for distributors according to these compensation plans is a complex task. Thus, building a commission engine that can execute fast and accurate calculations will always be a roadblock for developers. Each company runs on a unique compensation plan to stay competitive. The uniqueness in the compensation plan sometimes brings complications to software development. The development team has to check the logical difference in the compensation plan.

To motivate the distributors, timely payout of commissions and bonuses are important. Thus, the system must be able to handle millions of transactions without failure. It is important in MLM business to monitor distributor activities and provide useful insights to administrators by analyzing these results. The direction of business strategy can be influenced by these observations. Accurate monitoring of distributor activity and preparation of actionable insights is also a difficult task to look for in the growth process. 

These challenges are usually checked by a skilled module testing team and provide back to the developer with a set of bugs to fix. If the bugs aren’t fixed properly the system will collapse and eventually ends up in business loss! Not every technically strong programmer can create an MLM system easily, it does require great skills to analyze business calculation and then a good testing team to test every criterion one after the other.