Multi-level marketing (MLM) software is designed to help businesses manage and run their MLM operations effectively. The level of MLM software refers to the number of tiers or levels in the compensation plan.
In a single-level compensation plan, distributors earn commissions only on their personal sales. In a multi-level compensation plan, distributors can earn commissions on sales made by their downline, i.e., the people they recruit to join the MLM program. The number of levels or tiers in the compensation plan determines the level of MLM software needed to manage the program.
For example, a two-level MLM program requires software that can track the sales and commissions of distributors on two levels, while a five-level program requires software that can manage sales and commissions on five levels.
Therefore, the level of MLM software needed depends on the compensation plan structure of the MLM program, and the software should be tailored to meet the specific needs of the MLM program.