Is your business relationship with your MLM software supplier covered by a contract? Does the contract cover mutually understood expectations? Does it provide accountability on both sides? In an associated blog post and video, we stressed the importance of the business relationship you have with your software supplier. A business contract is essential to protect your business. The contract must grant you undisputed ownership of the data and specify what level of training and support to which you are entitled. It should also include a clear termination clause that specifies your entitlements should it become necessary to terminate the business relationship.

The importance of contractual accountability

Verbal agreements or promises do not provide the security you need. Service commitments and expectations should be documented in a contract signed by both parties.

Personnel change, business circumstances change, companies fail, and you don’t want to find yourself in a situation where perceived entitlements exchanged verbally, and not by contract, are dishonored. You want to be perfectly clear what business agreements you enter, how problems will be rectified, and what happens if your company or the software supplier goes out of business.

With our experience in launching over 1,000 MLM companies, we have seen a lot of company startups fail. Those companies that grew and prospered heeded the success factors and strategies we have outlined in this blog series and avoided the pitfalls we have identified.  

With those that failed, we have heard stories of the MLM software supplier refusing to release the data that should, by right, belong to their customer. Only a mutual contract offers the insurance against such malpractices.

The essential contract clauses you need

The software

What software modules are included with the contracted price, and which modules are optional extras.

Product support

What level of support will the MLM software supplier provide? Do they expect you to pay for this support? When needed, will you be able to pick up the phone and get an immediate response from your supplier? Does the supplier ask you to email or submit a support ticket they may answer in 24-48 hours? If you suffer a serious software problem, your business cannot tolerate such delays. You need real-time support.

Beware of the support service type provided by international conglomerates like Google, Facebook, or Amazon. It is humanly impossible for them to answer questions by phone from their huge customer base. With your MLM software, you need a more personal level of support.

System support

Make sure you can add merchant accounts, security features, distributors, and customers into the system without additional charges. Can you change the structure, or add content to your website without paying support fees?


A professional level MLM software supplier provides training for their clients. This should include in-house, in-person, and online training, and preferably a library of video training the customers can access at their convenience.

Engage an attorney

Your best protection is to engage an attorney to check the contract. While this may involve a substantial service fee, it may save you pain and grief further down that track.

In summary, ensure your expectations are contractually covered and signed by both parties.

If you have questions about what should be included with the MLM software contract you’re looking at signing, do me a favor, give me a call, send me an email. My phone number and email are on this webpage.

If you got value from this episode, like it, share it, let others know. Have a great day, and we’ll see you on the next episode.