Navigating MLM Management: Key Challenges and Solutions 
                     Addressing the Top Challenges in 
MLM Business Operations
E p i x e l  M L M  S o f t w a r e
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Introduction
• N e t w o r k  m a r ke t i n g  i s  a  s u c c e s s f u l  b u s i n e s s  m o d e l .  T h e  s u c c e s s  i s  
a c h i e v e d  a f t e r  s u r p a s s i n g  s o  m a n y  c h a l l e n g e s .
• T h e  c h a l l e n g e s  a re  c l a s s i fi e d  a s  i n t e rn a l  c h a l l e n g e s  a n d  ex t e rn a l  
c h a l l e n g e s .
• T h e s e  M L M  e n t e r p r i s e  m a n a g e m e n t  c h a l l e n g e s  s h o u l d  b e  a w a re  
a n d  s h o u l d  b e  re s o l v e d  w e l l .  
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
• Compensation plan is the important part 
of a direct selling business.
• A single compensation plan cannot be 
#1: Compensation used in all direct sales companies. Changes should be made.
plan management       Solution: 
 An MLM consultant can help and analyze 
the  compensation plan you choose and 
evaluate their performance constanly. 
• Collaboration is important in network 
marketing since it is a diverse industry 
with different kinds of people.
•  It would be difficult for companies to 
#2: Team bring them all under one roof and engage them.
collaboration Solution:
Try to boost engagement among 
distributors by giving them rewards, 
incentives etc. Also build brand 
communities. 
• Providing accurate and timely payouts is 
an important process in direct selling 
business.
• As the network grows, it would be 
#3: Payout difficult for companies to give accurate payouts.
management Solution:
Make use of MLM calculators for MLM plan 
monitoring and use advanced commission 
software to automatically track commission 
payouts.
• There are numerous decisions to be 
taken ina network marketing business. 
• There will multiple advisors and you will 
#4: Decision be confused in which decision suits best.
making Solution:
Use an MLM software with predictive 
analytics feature which helps to deliver 
actionable insights that will help you in 
proactive decision-making.
• Distributors are the important part of 
the business and along with training 
them, it is essential to personally 
#5: Distributor develop them. These tasks combined are hectic.
management Solution:
Design smoother onboarding process and 
use distributor engagement activities to 
keep them engaged. 
• There should be a balance 
between network marketing lead 
generation and building a steady 
#6: Customer Customer LifeTime Value (CLTV). 
relationship Sometimes it is tough to maintain.
management Solution:
Constantly run surveys and polls for the 
customers so that you can understand 
them. Also be therir support 24/7.
• Customers and distributor relationship 
should be maintained well. Sometimes it 
#7: Reducing will be difficult for the companies.
Solution:
attrition rates Try to build your brand trust and loyalty, 
reward your customers and distributors on 
time.
• Transparency is important between the 
customers and the distributors. A 
transparent brand can attract more 
#8: Establishing customers and a transparent payout system can increase distributor 
organizational retention.
transparency Solution:Only one important point: Keep up the 
transparency. Involve distributors in 
decision making and be transparent with 
your brand credibility.
• For a business, security threat is most 
dangerous. Companies should protect all 
kind of data.
Solution:
#9: Security Use PCI DSS compliance and two-factor 
authentication for securing your payments 
and create a reliable and strong backup 
solution for your business data.
• Keeping up with the compliance is a 
difficult task for direct selling 
#10: Achieving business. Each country has its own rules and regulations. 
compliance with Solution:
laws, rules, and Distributors should be well aware about the 
regulations rules and regulations. Businesses should build a compliance team to monitor the 
change in policies across various business 
sectors.
• Each market will be different in many 
terms. Before entering into the market it 
is important to know there well.
#11: Understanding Solution:
the market 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.
• Companies should be well aware about 
their competative market and all.
Solution:
#12: Beating the A good technical partner can give you the 
competition competitive edge to stay ahead in the 
marketplace.
Run a comprehensive competitive analysis
• These kind of challenge will be 
#13: Overcoming unexpected.
natural and man- Solution:
made disasters Keep ready with a concreate business plan 
and also safeguard your all kinds of data. 
Read more:
www.epixelmlmsoftware.com/blog/ml
m-enterprise-management-
challenges
Thank you
E P I X E L  M L M  S O F T WA R E
w w w. e p i xe l m l m s o f t w a r e . c o m