This blog post is the companion post to the video: Choosing the Right MLM Software and Technology for your Direct Selling Business. The following is the transcript of MLM Attorney Jeff Babener’s own words:
Hi, I’m Jeff Babener of MLMLegal.com. I’d like to talk to you today about MLM technology and software, the engine of the machine. Having great software won’t recruit one single distributor for you.
Having said that, lousy software and inferior support will no doubt ruin what might have been a tremendous business opportunity. The MLM business is a “numbers” business. It is built on recruiting, payouts on thousands of generations, genealogy reports to thousands of distributors, timely calculations, and payout of commission checks to vast networks of salespeople. The moment you fail in the technology area, you will lose confidence amongst your distributors. Prepare for sales recruitment, retention and momentum to plunge to ocean depths.
Recovery may never occur, and so remember; being cheap is not good in the technology business. Good value is great but being cheap is not. “You get what you pay for” is true in this acquisition. The fact is that cheap software usually means software that is flawed and for which there is no backend support service of worth. Your software must work, it must be scalable such that your data tracking solutions, your web and e-commerce solutions, and your reporting and communication solutions can grow with your business.
These are important questions for those bidding for your software. Statements like “up and running in 24 hours for $100” are as invalid as “join our MLM and earn $10,000 in the first week.”
Of course, expensive technology and software are not necessarily good either. At least one software firm became infamous in the industry for promoting seminars that were little more than high pressure sale presentations in which unwary MLM startups were induced into astronomical price offerings.
Beware the high pressure sales tactics that do not afford you the opportunity to compare in the marketplace and check references/opinions. Your best sounding board is your MLM business consultant or MLM lawyer.
Look for established technology and software providers with track records with established MLM companies. But that is not to say that you should not hold their feet to the competitive fire. Established MLM software companies all bring different, but important, strengths to the table. Most major providers also offer design solutions for the MLM startup that involve web-based software support that can grow to licensed, onsite technology, as the company grows.
Wishing you the best in your direct-selling business, I’m Jeff Babener.
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And, as always, visit MLMLegal.com, the best MLM resource on the web. The next Starting and Running the Successful MLM Company Conference will be here before you know it! On May 16th and 17th, 2013 we are hosting the MLM Conference for the 25th year! This is now our 64th annual conference (held almost consistently three times per year over the last 24 years). All executives/owners of MLM, direct selling, network marking, and party plan companies are welcome to attend. This is the original MLM Startup Conference, hosted and perfected by direct selling industry expert, MLM Attorney Jeff Babener. Call 503-226-6600 or 800-231-2162 to register. (Can’t make this event? Keep an eye out for our October and February conferences as well.)