MLM Software Sales Tax
Sales Tax - This is a complicated topic. System Databases allow you to enter and maintain your own determined tax rates by zip code... but, that is'nt always enough. Keeping up with rates to a given zip code takes tome. To that end, an API to a Sales Tax rate provider by Zip code would be the next opportunity. For some companies, they are selling to a variety of locations, where a zip code falls BOTH inside and outside a particular municipality, with additional sales tax. Roof top calculations become important, and require API access and integration to a third-party service. You will find that particilar products within an invoice may be taxed differently in each area as well. For this reason, roof-top calculations and a dependable third-party provider are essential. As you can see, it becomes very complicated, very fast.
**Know that most Sales Tax API services generate their revenue PER CALLOUT as users go to checkout. Initially, that may sound nominal, but a single user checks, rechecks and refreshes thier checkout MANY times. Each time they refresh, including when editing their address, the Call Out is done again, updating the Sales Tax Data. In fact, many of them have individual CALLOUTs per line item within an order, as products can be taxed differently. What sounds like Pennies becomes $$$$. Be prepared.
Database Self Managed - The least preferred method, but many companies begin with this. It enables you to set Sales Tax Rates on the Zip Codes you want to collect on, while getting the business off the ground. If you reach success, you should be migrating into further options.
Zip-Tax - Zip-Tax provides Zip Code based calculations, as a Service and are very reasonable. Again, a user's address may be in a Zip Code, but be IN or OUT of an added Municipality and additional Tax. This is not a perfect solution, but is often a next-step for small up-starts. (About 50 million CALLOUTs per month run about $50/mo)
CCH - Old-School, not a preference of ours. Solid history of service, but the bells and whistles of managing your tax rates across product types is not what Avalara has. Unless something major occurs, we would prefer to phase this one out of our conversations.
Avalara AvaTax - Avalara grew in features and functions, as modern accounting and portal type companies have done. The complexities of Sales Tax are handled very well, and in great detail. The costs run pretty high, but are in proportion to the growth of your business. This service is suited for operational companies, seeking to sell through the USA, while maintaining extreme accuracty in Sales Tax collection and calculations. Yes, they offer submittance(remitance) services.
StrikeIron - Another Old-School, not preferred, we seldom see requests for and prefer to phase out of our conversations (Unless something changes).
*TaxCoud - A Simplified site, seemingly limited in features, yet pretty good. They have strong customer service, and tought extensive submittance(remitance) services. (They have been knocking on Avalara's door.... HARD!)
(*Many requests to integrate this one, no client has pulled the trigger on implementation yet. We do believe to be a viable provider.)
There are many, many others. Some we have integrated, but not been pleased with, others we have monitored, with a desire to integrate when certain features go live. If you have a specific request, we may have it or will consider adding it.
MLM Software Features
Features of MLM Software may vary, based on the Version or your Budget. That said, if your budget dictates your decisions, you could handicap your business. Common MLM Platform features to consider include Public eCommerce Integration, Product Commissionable Values, Public Content Management, Distributor Corporate Resource or Training Area Management, Reports, Newsletters, Order Management, Autoships, Distributor and Customer Management, Genealogies, Commission Calculations, Payment Gateways and Inventory Management.