At a major direct selling event for new startup MLM companies, we were posed this question:

What’s a major pitfall to avoid in selecting and operating enterprise MLM software?

While this question could be answered as many ways as there are people, I see many new companies hoping their software and other technologies will make their offer irresistible.

Assuming technology will “Wow” your potential distributors into signing up, I believe, is a misplaced strategy. This is still a person-to-person industry that demands great products and lucrative opportunities. Technology cannot compensate for the substandard nor does it drive growth. It is designed to support growth. Your MLM software should do the heavy lifting of tracking sales and relationships, and calculating commission and bonuses in seconds what would take hours or days to do in an excel spreadsheet. Your software should also let the corporation and distributors know where they stand in their business goals and reveal opportunities for improvements.

In short, look for software that will first help meet your business goals, while providing the scalability and flexibility you need for fast growth, international expansion, and customizations.