What are the factors to be considered while pricing an MLM software ?
You are a direct selling business entreprenuer and is starting a business from scratch. Of the many factors that could bother you, one main thing would be that of an MLM software. While some might leave a hole in your pocket but doesn’t serve the purpose of it, it is important to first analyze what are factors included in the MLM software pricing.
From the business point of view, the pricing of an MLM software should ensure that cost is worth the values delivered for the users and at the same time meet the budget constrains of the client too.
So what are the key determinants to be considered?
Features and functionalities –
Be sure to integrate core features necessary for the operation of an MLM business like commission management, distributor management, genealogy tracking, sales tracking, marketing tools, ecommerce integration etc rather than opting for softwares that are overtly priced and has features that might not be required for your business.
Scalability –
Integrating core functionalities during the installation of the business is fine, however, as the business grow, the software should be capable to keep up with the growing business. And hence, scalability to accomodate larger number of users, transactions and level of customization is necessary as the business expands.
Options for customization –
Depending upon the level of customizations required the pricing of MLM software could vary. Tailoring the software according the requirements of the customers could cost different.
Integration abilities –
With rising needs, businesses might need to integrate newer features like payment gateways, CRM software, ecommerce platforms etc to streamline operations and enhace the software’s value and result.
Support and maintenance –
While pricing an MLM software, it is important to consider the cost of continued support, maintenance and regular updates that might be required for uninterrupted flow of businesses. Also, different packages for support services is also an efficient way to offer value-based pricing.
Compliance and security –
An efficient MLM software should ensure that its clientele stay compliant with every legal and regulatory mandates. For the amount of sensitive data and financial dealings taking place on an everyday basis, meticulous secrutiy in line with regulations such as GDPR, PCI-DSS etc are fundamental for direct selling businesses.
Hosting options -
Whether the software is hosted on-premises or in the cloud can affect pricing. Cloud-based solutions often have subscription-based pricing models, while on-premises solutions may have upfront licensing fees.
Onbaording and training –
Ensure that the software can effectively carry out training and onboarding of distributors which are crucial for the smooth functioning of the business.
Market competition –
Ensure that the software you are offering is competitive with other softwares with similar features in the market. The cost should be in line with the value and deliverables of the similar solutions providers.
With a thorough and painstaking analysis of these factors, delivering a software package that is fair, competitive, and effective could help businesses grow and sustain.
