A network marketing or multi-level marketing (MLM) business faces unique challenges because of its peculiar style of functioning. But thank God, there is technology! With its constant advancement, nothing is impossible. The obstacles that come in the way of an MLM company’s operations can be tackled easily with the help of completely customized MLM software that supports its business strategies. 

This will be clear once we understand the challenges. Some of them are mentioned below. 

1. Keeping distributors/members motivated: 

An MLM business works primarily through the recruitment of distributors. You become a distributor either through invitation by someone or in a big meeting. After this, you earn money not only through your sales but also through other distributors you recruit, by receiving a part of the income they generate. The sales of this company keep multiplying with a widening network of distributors. This is where the real challenge begins.

To keep growing, an MLM business needs a committed, dedicated team of distributors. A loss of interest on the part of the distributors would be suicidal and lead to the overall deterioration of the company. To prevent this from happening, the organization has to keep giving handsome awards and commissions, apart from the usual earnings it promises its distributors. The calculations of all the remuneration packages have to be correct and transparent. 

2. Inventory maintenance and distribution. Problems of going out of stock when demand is high and inability to supply the products in question have an adverse impact on business. 

3. A constant need for actionable data: As the distributor network becomes bigger, the company needs to give actionable data to its members, such as,  

1. What steps are needed to advance rank?
2. Are they qualified and active for the month? How many of their personally sponsored distributors have not placed a single order in the last 30 days, 60 days, 90 days, etc.?
3. How many customers did repeat purchases?
4. What activities should they do to improve their overall performance? 
5. What are their training needs? 

The solution for all the problems mentioned above is the implementation of suitable MLM software. It can take care of all the specific needs and help in ensuring sustained prosperity of your MLM business.

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