How to Build a Successful Direct Selling Company Continued - Page Four

By Jeffrey Babener, © 2013
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.  This business is a numbers
business.  It is built on recruiting, payouts on thousands of generations, genealogy reports to thousands of
distributors, timely calculation and payout of commission checks to vast networks of sales people.  The moment you
fail in the technology area, you will lose confidence amongst your distributors.  Prepare to watch sales, recruitment,
retention and momentum plunge to ocean depths.  Recovery may never occur.

And so, remember cheap is not good in the technology business.  Good value is good, but not cheap. "You get
what you pay for" is true in this acquisition.  The fact is that cheap software usually means "cheap 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 communications
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 your
first week."  Of course, expensive does not necessarily mean good either.  At least one software firm became
infamous in the industry for promoting seminars that were little more than high pressure sales presentations in
which unwary MLM startups were induced into astronomical priced offerings.  Beware the high pressure sales tactic
that does not afford you the opportunity to compare in the marketplace and check references and opinions.  Your
best sounding board is your MLM Business Consultant or MLM Lawyer.

Look for established providers with track records with established 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 involves web-
based software support that can grow to licensed onsite technology as the company grows.

Get the Product Right the First Time!

If your software runs the "machine," and the business is the "machine," then your product or service is, as the
French would say, your "raison d’être," your reason for existence.  In looking back on history of the direct selling
industry, a chicken and egg analysis makes it difficult to determine whether the business opportunity or product
was the essential reason for commencement of the business.  There are instances of both.  The founders of Avon,
Mary Kay, and Home Interiors came from successful experiences in marketing other products.  They found a
product suitable for their marketing talents.  On the other hand, the founders of Nikken, Amazon Herbs and
Shaklee had a passion for bringing uniquely new products to the world and direct selling became the best vehicle.  
You will fit in one of these two categories.  Whether it is one or the other, however, choose a product or service for
which you can promote with passion.  

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