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Major Challenges Faced by MLM Enterprises

Network marketing business has achieved their success after overcoming so many challenges. There are internal and external challenges that affects the organization growth. Internal challenges include compensation plan management, team collaboration, payout management, distributor management customer relationship management, security etc. and external challenges include achieving compliance with laws, rules, and regulations, understanding the market, beating the competition, overcoming natural and man-made disasters. These challenges are often known as MLM enterprise management challenges.

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Major Challenges Faced by MLM Enterprises

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  1. Addressing the Top Challenges in MLM Business Operations E pi xe l M LM S oft war e ww w. epi xe l ml ms of tw are .c om

  2. Introduction • Network marketing is a successful busine ss mode l. The succe ss is achieved afte r surpassing so many challe nge s. • The challe nge s are classified as inte rnal challenges and external challenges. • These MLM enterprise management challe nge s should be aware and should be resolved we ll.

  3. Internal External • Compensation plan management • Achieving compliance with laws, rules, and regulations • Team collaboration • Understanding the market • Payout management • Beating the competition • Decision making • Overcoming natural and man-made disasters • Distributor management • Customer relationship management • Reducing attrition rates • Security • Establishing organizational transparency

  4. Compensation plan is the important part of a direct selling business. A single compensation plan cannot be used in all direct sales companies. Changes should be made. Solution: An MLMconsultant can help and analyze the compensation plan you choose and evaluate their performance constanly. • • #1: Compensation plan management

  5. Collaboration is important in network marketing since it is a diverse industry with different kinds of people. It would be difficult for companies to bring them all under one roof and engage them. Solution: Try to boost engagement among distributors by giving them rewards, incentives etc. Also build brand communities. • #2: Team collaboration •

  6. Providing accurate and timely payouts is an important process in direct selling business. As the network grows, it would be difficult for companies to giveaccurate payouts. Solution: Make use of MLM calculators for MLM plan monitoring and use advanced commission software to automatically track commission payouts. • • #3: Payout management

  7. There are numerous decisions to be taken ina network marketing business. There will multiple advisors and you will be confused in which decision suits best. Solution: Use an MLM software with predictive analytics feature which helps todeliver actionable insights that will help you in proactive decision-making. • • #4: Decision making

  8. Distributors are the important part of the business and along with training them, it is essential to personally develop them. These tasks combined are hectic. Solution: Design smoother onboarding process and use distributor engagement activities to keep them engaged. • #5: Distributor management

  9. There should be a balance betweennetwork marketing lead generation and building a steady Customer LifeTimeValue (CLTV). Sometimes it is tough to maintain. Solution: Constantly run surveys and polls for the customers so that you can understand them. Also be therir support 24/7. • #6: Customer relationship management

  10. Customers and distributor relationship should be maintained well. Sometimes it will be difficult for the companies. Solution: Try to build your brand trust and loyalty, reward your customers and distributors on time. • #7: Reducing attrition rates

  11. Transparency is important between the customers and the distributors. A transparent brand can attract more customers and a transparent payout system can increase distributor retention. Solution: Only one important point: Keep up the transparency. Involve distributors in decision making and be transparent with your brand credibility. • #8: Establishing organizational transparency

  12. For a business, security threat is most dangerous. Companies should protect all kind of data. Solution: Use PCI DSS compliance andtwo-factor authentication for securing your payments and create a reliable and strong backup solution for your business data. • #9: Security

  13. Keeping up with the compliance is a difficult task for direct selling business.Each country has its own rules and regulations. Solution: Distributors should be well aware about the rules and regulations. Businesses should build a compliance team to monitor the change in policies across various business sectors. • #10: Achieving compliance with laws, rules, and regulations

  14. Each market will be different in many terms. Before entering into the market it is important to know there well. Solution: Do a thorough research about the market you are planning to expand.Research about the customer and market trends and preferences every now and then. • #11: Understanding the market

  15. Companies should be well aware about their competativemarket and all. Solution: A good technical partner can give you the competitive edge to stay ahead in the marketplace. Run a comprehensive competitive analysis • #12: Beating the competition

  16. #13: Overcoming natural and man-made disasters These kind of challenge will be unexpected. • Solution: Keep ready with a concreate business plan and also safeguard your all kinds of data.

  17. Read more: www.epixelmlmsoftware.com/blog/mlm- enterprise-management-challenges

  18. Thank you EPI XEL ML M S OFT W AR E ww w.e p ixe lm l mso ftwa r e.c o m

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