Multilevel marketing is a popular business strategy adopted by many countries for the distribution of their products or services. The distributors can add more recruits under them and these distributors are independent. They can receive a commission or bonus based on their recruits. Some people consider this as a scam but in reality, these MLM (https://www.investopedia.com/terms/m/multi-level-marketing.asp ) strategies have been adopted by many countries and they are offering people to earn a handsome income.
Direct selling association (https://en.wikipedia.org/wiki/Direct_Selling_Association) is a national trade association that supports direct selling companies. The DSA has presented awards in seven different categories for the companies to honor for their outstanding performance. Amway, the top direct selling company for years has achieved an award in the category of “ Excellence in Business Training” for their contribution in “Project Light Speed”. It also maintained to be in the list of top 25 direct selling companies based on the largest net sales. In 2019 Amway (https://en.wikipedia.org/wiki/Amway) has grabbed an award in the category of Excellence in Business Training.
Read out the blog to know more about DSA award winners: https://www.epixelmlmsoftware.com/industry-news/us-dsa-awards-2020
There is also a list of the top 25 direct selling companies based on the largest net sales. It includes companies like Amway, Nu Skin Enterprises, Modere, Medifast, etc. This implies that many companies are experiencing positive growth and also they are been able to aware people about the positive impacts of the industry.
Social media platforms have an important role in changing the way we live ( https://www.apa.org/members/content/social-media-research ). For many years it has been part of our daily lives as it allows us to connect with friends and loved ones. However, lately, the attitude of people towards social media platforms is changing. Social media platforms are scrutinized now more than ever. The major reason for this backlash is that more people are getting involved in social media and it is also impacting our daily lives. As a result of this backlash, major platforms have made phenomenal changes in their guidelines. The latest on the list is the young and growing platform TikTok.
TikTok has a user base of around 800 million. At the end of 2020, TikTok made major updates in its guidelines. One update that caught everyone's attention was their take on MLM. Along with banning Ponzi and pyramid schemes, TikTok also banned the upload of MLM contents ( https://www.tiktok.com/community-guidelines ).
MLM or network marketing ( https://en.wikipedia.org/wiki/Multi-level_marketing )is a type of business model where products and services are sold directly to consumers. This legit business model has been around since the 18th century. With the advancement of technology, the distributors of MLM companies started to find their customers through social media. This window of opportunity has been exploited by many fake MLM companies by spreading false claims and misleading information to lure more people to their business. By this ban, influencers spreading false claims have lost their space. Thus MLM companies who sell their products and services lawfully can now flourish their business. Read more from the blog https://www.epixelmlmsoftware.com/industry-news/tiktok-bans-pyramid-ponzi-mlm-schemes
MLM software is an integral part of the MLM industry. It helps the MLM companies or admin teams in organizing, managing, and controlling the entire business. The development face of MLM software is directly influenced by many factors. Let’s look into some of the commonly faced challenges. Visit the blog https://www.epixelmlmsoftware.com/blog/mlm-software-development-challenges for a complete understanding.
Commission ( https://en.wikipedia.org/wiki/Commission_(remuneration) ) calculation and payment is one of the important functions of an MLM system. Setting up a commission engine that can automate complex calculations without any failure and distribute commissions to salespeople on time is one big challenge for developers. Tracking distributor activity and offering valuable insights to administrators by analyzing these data is crucial in MLM business. These insights can change the course of the business strategy. Thus accurate tracking of distributor activity and preparing actionable insights is a challenging task to look for in the development stage.
Setting perfect rank criteria, calculating individual compensation and generating reports, adding more modules if the requirements get wider and need to edit the existing codes in a way that meets the new criteria, integrating new technology to the system without causing any issues in the existing system are other pain points in the development stage.
According to a survey conducted, at least 1 out of 13 adults have participated in an MLM business ( https://en.wikipedia.org/wiki/Multi-level_marketing ). There are over 6.8 million distributors in the United States alone. This data shows the popularity of MLM industry among people. With the rising popularity, the competition to drive distributors to an MLM company is also growing.
The quality of products or services is an element that helps MLM companies to cope up with the rising competition in the market. The next factor that helps is the distributors, the frontline salesforce of a network marketing company. Distributors promote the products and the ideas of the company to the public. Thus it is critical for MLM companies to focus on the facts that motivates distributors in order to meet the company objectives.
The opportunity to earn a high commission ( https://en.wikipedia.org/wiki/Commission_(remuneration) ) for the sales effort is the driving force for any distributor. The commission or bonuses are given to a distributor according to the compensation plan chosen by the organization. There are many pre-existing plans available in the market such as Binary, Matrix, Unilevel, Generation, and Monoline. Every company modifies these plans to bring uniqueness in order to stay ahead of the curve.