Benefits of Using MLM Software

Multi level marketing (MLM) can be managed well only with the help of efficient software. Otherwise, it would be a taxing job to keep track of everything manually. Calculating the sales and commissions of each member can be a hard task and as your community grows, it will keep getting harder. There are uncountable software solutions to choose from when it comes to network marketing. Here is what this software can do for you.


Benefits of Using MLM Software


Better Promotions

With the best network marketing software, you can easily market your web page or products to a great extent. The monitoring application enables the entire online system to function on its own.

Specific Reports

Using the MLM software, you can easily access reports of each member. In-depth reports on the sales of each member is also a possibility. You can get these reports in just a matter of seconds or minutes.

Automated accounting

Most of these MLM software tools are capable of identifying the smallest of increase or decrease of sales. Performance statistics can also be obtained via this software.

Better visibility

MLM software ensures that your product and website get the best visibility possible across all platforms. The software has a tracking app that helps with this process.
Previous payment details

Most MLM software tools support opt-in and subscriptions. This helps businesses to increase their database of potential customers and existing customers. Businesses can get the details of all their transactions with ease. This is one of the most significant features that MLM software must have.

With so many benefits of MLM software, every business must use this to promote and maintain their day to day operations. The demand for this software is rising day by day. Hence, there are many companies that deal with MLM software currently. They offer different kinds of MLM software tailored according to the needs of different users. Every MLM software company is trying its level best to beat all competition in order to offer the best services and product to all MLM businesses. With new features coming in every now and then, these companies are making the most of the technology available to them to churn out the best software possible for network marketing companies.

The software needs to be updates at all times to reap the best benefits of this software. When any MLM company is purchasing this kind of software, it needs to be certain that the latest version of the software is being purchased in order to outdo its competitors. With latest features and advanced technology of this software, you need to ensure that your version is updated to make the best use of MLM software for your business.


How does Unilevel MLM work ?

Unilevel MLM plan is the easiest of the MLM plan to understand. In this plan, each of the distributor can sponsor as distributors as he/she may like and all these distributors will be on his/her frontline. This is similar to a Forced matrix compensation plan with a main difference being, that in Forced Matrix plan, each distributor can only sponsor a certain number of distributors as his frontline. All the additional distributors will be placed further down under other distributors.

Unilevel MLM Plan structure


In a unilevel plan, a distributor typically sponsors as many distributors as his frontline. There is no limit as to the number of distributors that one can sponsor. For instance, in the above MLM plan, the distributor A has sponsored the distributors B,C, D, E, ∞ who are his frontline. The distributors B, C, E, .. are free to sponsor as many distributors as they like. The main advantage of unilevel plan is that, as there is no limit on the number of distributors one can sponsor, the more number of sponsors, the more is the commission.


Unilevel MLM Compensation structure

In unilevel plan, all the distributors in the same level would receive the same compensation ( commission ) and the commissions are generally paid out on a limited depth ( can be upto 5 to 7 levels deep). Some also consider this as a disadvantage however, as the unilevel plans are constrained by the limited depth of commission which inhibits deep sales organizations.


Support for Unilevel MLM Plan

MLM Network Software from supports Unilevel MLM compensation plan where the administrator or the manager can set the levels up to which the commission can be paid( both manual and auto-debit is supported ) and also the commission in percentage or amount can be set while creating the unilevel distribution plan.



Understanding a binary MLM income calculator

Know how binary MLM income calculator plan works and why they are so popular in the networking marketing business.
Binary MLM plans are considered to be the most attractive MLM plans of all. The reason is your network can be grown efficiently with all the help you can get from your uplines, downlines and sidelines.

To explain to briefly, a Binary MLM plan, as the name suggests, allows you to have only 2 direct downlines in your network. Yes… just two. Any distributor in this MLM business plan can have only 2 direct downlines. If you wish to grow your network, you have to keep adding downlines to your downlines.
Binary MLM plans were introduced sometime around the late 1980s and have become one of the four most popular company structures in the 2000s.


The two distributors who have been signed up are called the power leg and the inside leg. New distributors who sign up are usually placed under the next available empty spot under the power leg. The profit leg has distributors who are usually prospected and recruited by the immediate upline. What a binary plan does is that it puts a firm structure in place that ensures that all distributors have a similar fixed income plan as per the depth of their network, i.e., you can earn good money only if your downlines are active and growing your network. Your income stops or becomes stagnant if your downlines are not active.
In a binary plan one can get three types of commissions:

Sponsor bonus: A distributor gets a sponsor bonus when he signs on a distributor directly under him. This can be a lump sum amount or a percentage of the plan signed onto by the prospect.

Pairing bonus: MLM businesses pay pairing bonuses to distributors for the downlines placed under their direct downlines. This bonus is sometimes calculated as a points system for every person signed on or can be a lump sum per person or as a percentage of what a new joinee signs on as.

Matching bonus: It is the amount earned as a percentage for every person signed on by your downlines. This actually starts almost 5–6 levels below you and is actually a motivation for you to grow your network deeper.

Compensation Plans
Not all MLM companies have the same compensation plans for their binary MLM plan, but some usual compensation plans have been explained below.

Each distributor under you is called a leg and the one performing the worst is called a payleg and the one performing the best is known as the profit leg. As per a balanced volume concept used in binary MLM plans, members of both the trees will be paid a certain part or percentage of the pay leg’s incremental growth. This plan does not look at how much each individual has achieved. This results in a process called flushing, i.e., the sales difference between the profit leg and the pay leg is actually lost by this particular network.
This is a major disadvantage which results in distributors leaving an MLM business or not putting in a enough effort as it does not completely recognize an individual’s efforts.

Most distributors introduce many more sponsors in the pay leg in order to cover up for the backlog. This process is called balancing the legs. This is basically handholding one of your downlines in order to ensure that both your legs are on an equal footing.
Many MLM businesses frown upon this practice and try to avoid this by framing rules that prevent distributors from balancing their legs.

Another disadvantage of the binary plan is that as your network grows, the amount of money earned also reduces. Yes, you read it right. The money reduces. This is because, your network may grow, but the actual sales of your products may not increase by a lot as sales will still be carried out by a only few people.
While this results in your network members growing exponentially, but not your sales. So, your commission and incentives, which are distributed across your team, will not grow exponentially, and what you as an individual get will be much lower than before. This results in a lot of heartburn and resignations and has been cited as the biggest reason for many successful MLM businesses to shut down.

An important factor which influences the running of your MLM business is the MLM software you choose. Having a binary MLM plan compliant software ensures that you get all the MIS reports in a format of your choice without depending on your company auditors and finance team.

One such software you can trust is DNB MLM Software. Apart from providing the usual software solutions like inventory management, OTP facilities for payments, SMS blasters for instant network communication, excel MIS reports etc. what sets them apart is their ability to customize softwares and solutions as per the requirement of your business. DNB also supports the various binary MLM needs like computing the sponsor, pairing and matching bonuses, keeping a track of the network, the profit leg and the pay leg etc.


A binary MLM plan is currently the most sought after MLM plan as it allows distributors to grow their network easily. However, what is most suitable for one person may not be suitable for another and you should choose your business plan carefully based on your unique needs. Any software you choose thereafter should take into account these needs, so you can derive maximum synergies for your business.


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