Important Questions
When looking for a software vendor, asking the right questions is key to forming a long-lasting relationship.
Important Questions to Ask MLM, Direct Sales, Influencer, and Affiliate Software Companies About Their System
Has their software system been deployed and functional with a client who has over 1,000,000 distributors?
How many transactions and sign-ups is their system capable of processing in a single day?
How many users can simultaneously access their system?
Do they provide a test system to run commission scenarios?
Can their system re-run commissions in live scenarios?
How long will it take to run commissions with 250,000 distributors, 1,000,000, or more?
Does their system have the ability to complete multiple compensation plans, currencies, languages, gateway/merchant accounts?
Is technical support included in the monthly fees, or are there separate support packages?
What method of support do they provide – phone, email, ticket system?
Do they provide API’s (Application Programming Interface) so clients can customize as needed?
Do they provide an expert on compensation plans who can provide invaluable guidance?
Is their system rules-based and parameter-based?
What is the experience level of the staff?
Can members export data in order to change vendors?
How are backups handled? How often can they be retrieved?
Which commission genealogy structures are supported?
If their software is less than 10 years old, you should consider the iMatrix Software Platform. Learn More Now
Common mistakes made by companies: You don’t know what you don’t know
1. Industry knowledge and experience in the direct sales, network marketing, and MLM industry by new company owners. Being familiar with industry terms and procedures are crucial for success. Do a lot of research and talk to industry experts.
2. System set-up: There are always questions which need to be answered that you may be unaware of, or may not have even considered. Your software vendor should provide you insight so you can make educated decisions.
3. Training tools: Not taking the time to understand and learn the training tools. This applies to companies and distributors. You need to promote various tools and train your members on them.
4. Computer literacy: It is vital to have someone on the corporate team who is computer literate for the set-up and thereafter. This is a common mistake with start-ups and can prolong the set-up time indefinitely.
5. Skipping steps and/or not reviewing or completing each step because you want to go live immediately. Though the iMatrix Platform allows for immediate modifications, making changes later can have negative consequences and impact your business objectives. Planning is crucial.
6. Just get going: Don’t worry about unique customizations and displays during set-up unless they are absolutely necessary for your business goals. The iMatrix Platform will always allow you to add unique features.
7. Website: Depending on your objectives, don’t spend too much time or money on designing a new website. Use a website template and get going. Your website can evolve over time. Remember, no one will stumble across your website unless you spent a lot of time and money on your Search Engine Optimization (SEO) and/or Advertising prior to your launch. It is highly unlikely your website will get a high ranking on the first page, unless you have a lot of money to spend on pay-for-click ads. iMatrix can help with your marketing and advertising. Click here to learn more
8. Operational staff: Only focusing on the compensation plan and products, and not employing an experienced staff.
9. Launching before you are ready: This can cause product delivery and service issues, even when it’s a “service” product. It can also adversely impact the system and its features.
10. Making hasty changes to the Compensation Plan: This causes confusion in the field. They will stop working and start trying to figure out how to manipulate the new plan.
11. Multiple decision makers: It is optimal to have a single individual make the final decisions who also has money invested in the company. Too many decision makers will delay set-up, cause conflicting goals, and create dissension. Once the company starts making money, conflicts typically begin as others perceive they are working harder and they should get more money. Ideally, have a pre-arranged plan for decision making and owner compensation before you launch the company.
12. Inadequate financing/underfunded: Not having enough reserve capital to cover operating costs for at least six (6) months after launch. 12 months is optimal.
13. Distributor training: Lack of thoroughly training your distributors and not having consistent training for all levels.
14. No compensation plan expert on staff: If the software vendor does not have a highly experienced compensation plan expert who is on staff and can provide invaluable input, your business goals may not be met. This is also important in the future when you are considering changes and additions.
15. Promises: Don’t make promises you cannot or do not intend to keep. Do not announce or promise a date to the field for anything that has not been developed or tested.
16. Keep a positive attitude: Perception is reality. Let it be known that everything is going great. You can acknowledge issues, but keep the message strong and positive! The direct selling business is a hotbed of rumors, especially in this age of social chatter.
17. The two golden rules: (1) Deliver your products or services as promised. (2) Pay commissions on time!