MLM Software
Member Back Offices
Your members expect a full-service Back Office from the MLM
Software you select. Interesting are the two different trains of
thought which I often see from owners or CEO's of MLM Companies.
Owner a.) "We have hired the most Expensive MLM Attorney and
purchased the most Expensive MLM Software."
This owner is telling people that he has little experience and has
Over-Spent in all areas which will mean that Members will Over-
Spend for products and services with minimal payout, no matter
what the compensation plan attempts to offer.
Owner b.) "We have purchased cheap MLM Scripts and hired my cousin
to patch them together so we can launch"
This owner is telling people that he has zero experience and is
underfunded with little or no chance of sustaining in business, as
well as a train-wreck for members who have back office
expectations and server stability with growth.
No one wants their company to throw money around. No one wants
their company to be broke and shoe-stringing it.
In the 1990's, it was common to spend $50k to $300k for Software,
Commission Engine, Website, and Back Offices. In my opinion,
$150k-$250k was the average that I saw. Why? First, it truly
takes a serious investment of experienced software developers who
know what is needed, on staff, with team of programmers, for 1-2
years. Just with payroll alone, from drawing pad to delivery, you
could drop 1-4 million on such a project. A startup company
doesn't have such time, thus existing software vendors offer
solutions that can be configured for compensation plan or
integration desires in shorter periods. In light of development
costs, the 1990's were a bargain. It also helped that Investors
were readily available.
Many companies would go through the
process of a Reg D, or a reverse buyout of a public shell in order
to take investors. Three phone calls could result in a dozen
investors at your desk by lunch.
Today, the financial atmosphere is much different. Investors are
tighter with their money, more demanding, and for some... harder
to find. People have a better appreciation for the value of a
dollar.
This mentality leads many into the train-wreck of patch
together scripts and shoe-stringing it. With an embarrassing
website and software on the face of the company, members quickly
recognize under-funding, non-functioning back offices, missing
tools, security leaks, commission checks that don't go out,
personal data leaked or sold, and failure comes quickly.
No one wants to throw numbers out on an MLM Software Solution
without having a full documentation of needs, integration,
compensation plan, rank qualifications, etc.
That said, and with
a willingness to adapt desires to reduce costs, many companies are
launching today in the $20k-$30k range as an average. Some are
able to actually fit into $15k, while some require closer to $50k.
Numbers are broad, as the actual need and details of each company
effect the solution.
There are some companies that require
considerable custom programming, and or true internationalization
which could lead costs into several hundred thousand.
Where do you start? First, with an MLM Consultant who knows
software configurations and can guide your compensation plan
development to fit within target budgets for software.
That said, and as this article began, your members have
expectations of the back office. Below are some of the features
that I would look towards as possibilities for your system.
Regards,
Scott H Leonard
- Consultant
- Speaker
- Trainer
- MLM Software Provider
- Guerrilla Marketing Expert
- Web Services Provider
MLM Software Central - San Diego
121 Broadway St, Suite 347, 348
San Diego, CA 92101
1-888-221-0106