Buying MLM software in India: a 12-point checklist

MLM software is not a website template. It holds member identity data, bank details, KYC documents and commission history. A wrong choice is expensive to reverse, so evaluate the vendor on the things that are hard to change later.

1. Commission engine, not just a plan name

Ask for the exact calculation order: gross, capping, admin charges, TDS, net credit. If the answer is vague, the engine is probably hard-coded for one plan.

2. Source code ownership

If you do not own the code, you rent your business. Ask for a written handover clause, repository access and deployment documentation.

3. TDS and compliance handling

Payouts need TDS deduction, PAN capture and exportable statements. Check whether the system can produce a member-wise annual summary your CA can reconcile.

4. KYC workflow

Aadhaar, PAN and bank proof uploads with an approval queue and rejection reasons. Without this, payouts to the wrong account become your support team’s daily problem.

5. Payment gateway integration

Confirm the gateways supported, whether settlement goes directly to your account, and how failed or partial payments are reconciled.

6. Data migration

If you already run a network, ask how members, sponsors, wallets and pending withdrawals will be imported — and how the import will be verified.

7. Hosting and ownership

Prefer hosting you control, or at least a documented export path. Ask what happens to your data if you stop working with the vendor.

8. Mobile app reality

An app that mirrors the web panel is useful; an app that cannot show genealogy or request withdrawals is a demo. Check the actual screens.

9. Support model

Ask who answers after launch, in what channel, and what is covered. A named engineer beats a generic support inbox.

10. Security basics

Role-based access, OTP login, audit logs, encrypted backups and SSL are table stakes. Get them in writing.

11. Scope document

A written scope with inclusions and exclusions prevents most disputes. “Customisable” is not a scope.

12. Reference checks

Ask for a live demo of a real installation, not screenshots. If a vendor cannot show a working system, treat that as your answer.

Disclaimer: this checklist is general software procurement guidance. It is not legal, tax or financial advice.