ByDesign is a technology company that provides custom software solutions, such as a corporate back office, that support social commerce, commissions engines, party modules, etc. for multi-level marketing and direct selling companies. I work with people looking for a software provider for their commission programming with over 35 years in the industry.
What to consider before choosing an MLM software
It’s important to note that your MLM software will be in charge of helping run your business from all angles – from commissions, API access, digital storefronts, e-commerce, party plan solutions, promotions, live and social selling, and tools for sales reps, that’s why we created our Freedom solution. There are a handful of important questions companies should ask themselves when looking at a software provider. First and foremost, they have to ask the right questions, because software that goes along with the commission engine is very important. If they feel that price is the number one issue, it’s not. While it is definitely important, it shouldn’t be the end-all-be-all. Once they get into a relationship with software, it’s hard to move to another provider because it could be costly.
Vice President of Sales at ByDesign Technologies
What six questions should companies be asking themselves when choosing a provider?
What are your needs?
First, build a requirement list and pinpoint exactly what you wish to achieve with your software. What types of features might satisfy those needs? If you’re not quite sure what features to look for, having a detailed outline of your business flow will allow software providers to help you identify what those features might be. Keep in mind that this list will continue to alter over the course of your search process. As you explore options, you’ll uncover additional requirements, as well as eliminate unnecessary ones.
What is my budget? What is the pricing strategy that fits my business?
Once you’ve identified your business’ needs, organizing them according to their priority will allow your software to provide you with the appropriate benefits at the appropriate times. Sometimes companies will come to me looking for a new provider, citing their unhappiness with their previous software provider. In response, I would say, ‘Why were you unhappy? What was lacking? Why are you on the market for another one?’ These are very important questions because jumping between softwares becomes quite costly. Be sure that you are aware of any seemingly hidden fees as well as the details of per unit pricing so you know exactly what you’re signing up for.
What is my timeline?
Do not say you need to be live on a software the next day, or the next week. Picking a software should not be a quick decision. Companies should allow themselves time to look into at least two or three software providers before making a final decision. Additionally, the time it takes for training and testing after selecting a provider needs to be accounted for. Being realistic with your timeframe and expectations is a high priority for this process to be successful.
Is my compensation plan defined?
Compensation within the MLM and direct selling industries is complex and there are a lot of moving pieces. You’ve got to have a software that is robust enough to be efficient for your company. Don’t copy other companies because it works for them – this will fail 99 percent of the time. Ideally, an expert should be involved in the creation of a company’s compensation plan. This is extremely helpful to your software provider.
Am I prepared for the software demo?
You’re going to have a demo of each software you consider, and hopefully it’s not only via a powerpoint presentation. Ask to be shown an example live site of the software. Prepare yourself to ask the right questions. For example, if your company is focused on party plans, it is useful to ask if that provider supports this. If the answer is yes, your next question might be, “How many party plan company clients do you currently have and can I call them?” The same concept applies with an influencer or an affiliate program. Another important question during a demo is, “How long does it take the system when you run commissions?” Not everyone thinks to validate that the software will perform in a way that works best for their business needs.
Am I planning for growth?
Choosing a software provider is a high-priced decision. As important as it is to determine what your business needs currently are, you should have a solid understanding of what your business needs will be in the future. You always want to aim for a software that is sustainable for your business and will continue to benefit your business as it grows and changes. This is another area where looking into the user experience of other clients comes in handy. Investing in a software provider that has a proven record of success with other businesses similar to yours will help you avoid unnecessary run-ins.
What’re the trends right now in the industry?
Post Covid-19, we’re seeing a lot of influencer and affiliate programs. Let’s say someone doesn’t necessarily want to be part of an MLM, but would like to be compensated for every purchase made after hearing about it through this person – this makes them an influencer in an affiliate program. This is very popular and simple as it’s extremely non-complex. We’re also seeing curiosity regarding the method of payout. Some methods might be check, direct deposit, debit card, and even cryptocurrency.
In our experience, companies also need to be willing to make the adjustments and changes, otherwise they’ll inevitably go backwards. One way or another, adjustments have to be made from compensation plans to social media, just be involved in the evolution. We see clients growing by leaps and bounds through social media. In-person engagements are slowly coming back, however they continue to be secondary and a bigger lift. Social media is just going to have to be part of your methodology as you go forward. Learn more at https://bydesign.com/blog/.
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