Virtually all new startup direct selling companies utilized an outsourced technology solution for managing genealogies and commission payouts. In addition, such technology serves distributors by providing back office access for reviewing sales performance, commissions, etc.; replicated websites; communication tools, etc. The software is hosted on the server of the technology provider where it is maintained 24/7. As companies grow to substantial size, they typically may purchase a source code license and run the software on company computers.
There are many good software providers in the direct selling industry. For a list of some of various direct selling vendors, see the MLM Resources section at www.mlmlegal.com.
Choosing the right provider presents an important task because, the technology solution is integral to a successful business. Not only should the platform serve all the internal IT needs, but also, it should demonstrate that it can integrate with other outside software applications such as ecommerce and sales and use tax compliance.
The search process should be deliberate. It is best to seek the advice externally or internally of an advisor with significant IT experience, preferably in direct selling. Companies should interview multiple software firms to examine the offerings, the service record and the right personal connection. It is recommended that companies seek references and contact those references to learn about past performance record of the software provider.
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