How Much Does It Cost to Build an MLM Software for a Startup?

If you are thinking of starting a multi-level marketing (MLM) business, you might be wondering how much it would cost to build MLM software that can handle all the aspects of your business, such as recruiting, commission, inventory, sales, etc. You might also be tempted to look for cheap solutions online that promise to create a clone of a successful MLM app for a fraction of the price. However, before you make any decisions, you should be aware of the reality and complexity of developing MLM software from scratch, and the factors that affect the cost.

In this article, we will provide a clear perspective to a naive internet user that believes they can hire someone to make a clone of the end-user app by US$10k and then will seat and become multi-million self-made by doing nothing with a little invest of $10k dollars. We will also give you an estimate of the cost of building an MLM software for a startup, including mobile app, backend, support, database administrator, scrum master, quality assurance, cloud computing expenses, etc.

What is MLM Software?

MLM software is a software system that enables MLM businesses to manage their operations, such as recruiting new members, tracking sales and commissions, managing inventory and orders, communicating with customers and distributors, etc. MLM software can also provide features such as analytics, reporting, marketing tools, e-commerce integration, etc.

MLM software can be divided into two main components: the front-end and the back-end. The front-end is the user interface that customers and distributors use to interact with the MLM business. It can be a website or a mobile app that allows them to sign up, buy products, view their earnings, etc. The back-end is the server-side application that handles the business logic and data processing of the MLM business. It can be hosted on a cloud platform or on-premises servers.

The Complexity of Developing an MLM Software from Scratch

Developing MLM software from scratch is not a simple task. It requires a lot of planning, design, coding, testing, debugging, deployment, maintenance, and support. It also involves multiple technologies, platforms and frameworks that need to work together seamlessly.

Some of the challenges and complexities of developing an MLM software from scratch are:

• Choosing the right architecture and technology stack for the front-end and back-end
• Designing a scalable and secure database schema that can handle large amounts of data and transactions
• Implementing various MLM compensation plans and algorithms that calculate commissions and bonuses accurately
• Integrating with third-party services and APIs such as payment gateways, e-commerce platforms, SMS providers, etc.
• Ensuring cross-platform compatibility and responsiveness for different devices and browsers
• Testing and debugging the software for functionality, performance, security, and usability
• Deploying and hosting the software on a reliable cloud platform or on-premises servers
• Providing ongoing maintenance and support for bug fixes, updates, and enhancements

The Cost of Building an MLM Software for a Startup

The cost of building an MLM software for a startup depends on various factors such as:

• The scope and complexity of the project
• The features and functionality required
• The design and user experience desired
• The technology stack and platform chosen
• The development team size and expertise
• The development time frame and deadline
• The quality standards and testing methods
• The deployment and hosting options
• The maintenance and support services

Based on these factors, the cost of building an MLM software for a startup can vary widely from tens of thousands to hundreds of thousands of dollars. However, to give you a rough idea, we will use some assumptions and averages to estimate the cost.

According to Upwork, the average hourly rate of senior IT staff in 2023 is $88 per hour. Assuming that you need a team of 5 developers (2 front-end developers, 2 back-end developers and 1 full-stack developer), 1 designer, 1 database administrator (DBA), 1 scrum master (project manager), 1 quality assurance (QA) engineer and 1 support engineer to build your MLM software from scratch in 6 months (26 weeks), the cost would be:

Project Staffing Costs Breakdown:

1. Front-end Developer:

• Hourly Rate: $88
• Hours/Week: 40
• Weeks: 26
• Total Cost: $91,520

2. Back-end Developer:

• Hourly Rate: $88
• Hours/Week: 40
• Weeks: 26
• Total Cost: $91,520

3. Full-stack Developer:

• Hourly Rate: $88
• Hours/Week: 40
• Weeks: 26
• Total Cost: $91,520

4. Designer:

• Hourly Rate: $88
• Hours/Week: 40
• Weeks: 26
• Total Cost: $91,520

5. DBA (Database Administrator):

• Hourly Rate: $88
• Hours/Week: 40
• Weeks: 26
• Total Cost: $91,520

6. Scrum Master:

• Hourly Rate: $88
• Hours/Week: 40
• Weeks: 26
• Total Cost: $91,520

7. QA (Quality Assurance) Engineer:

• Hourly Rate: $88
• Hours/Week: 40
• Weeks: 26
• Total Cost: $91,520

8. Support Engineer:

• Hourly Rate: $88
• Hours/Week: 40
• Weeks: 26
• Total Cost: $91,520

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Overall Total Cost for the Project: $732,160

This is just the development cost. You also need to consider the cost of cloud computing expenses, such as hosting, storage, bandwidth, etc. According to AWS, the average cost of cloud computing for a small business in 2023 is $0.10 per GB per month. Assuming that your MLM software needs 100 GB of storage and 1000 GB of bandwidth per month, the cost would be:

Service	Cost per GB per Month	GB per Month	Months	Total Cost
Storage	$0.10	100	6	$60
Bandwidth	$0.10	1000	6	$600
Total	–	–	–	$660

Therefore, the total cost of building an MLM software for a startup, including development and cloud computing expenses, would be:

$732,160 + $660 = $732,820

This is a very rough estimate based on some assumptions and averages. The actual cost may vary depending on your specific requirements and circumstances. However, it should give you an idea of the magnitude and complexity of developing MLM software from scratch.

Conclusion

Building MLM software from scratch is not a cheap or easy endeavor. It requires a lot of time, money, expertise and resources. It also involves a lot of risks and challenges that need to be overcome. Therefore, if you are thinking of starting an MLM business, you should not fall for the unrealistic promises of cheap and quick solutions online. Instead, you should do your research and plan your budget carefully. You should also consider hiring a professional and experienced MLM software development company that can provide you with a customized and reliable solution that meets your needs and expectations.

: https://morganoverholt.com/upwork-hourly-rates/
: https://aws.amazon.com/pricing/