Why Data Security Is Important For MLM Software

Data security is to be integrated with any kind of software and have you ever thought why data security is important for MLM Software. MLM software is the software to manage your MLM business effectively and data security is important to maintain the MLM software in many ways.

Multi-Level Marketing Limited to Security

As we all know that multi-level marketing is usually based on the product sale, it is highly dependent on the e-commerce practice to make the sale through online and to promote the business.

Business activities via an e-commerce platform involves many activities like processing orders, processing credit card payments, storing and maintaining the user or customer data.

As these data are more prone to fraudulent activities, they should always be stored in encrypted format and it is good to avoid storing in the plain format. Multi-level marketing also involves storage requirements like storing the data of the distributors, down lines, commission plan, and payment details.

So the MLM companies and the integrated E-commerce platform need to meet the security standards for storing and maintaining the customer’s data, all the financial transaction data, all the MLM related data.

MLM Software Security Features

The basic security features of the MLM software that should be included are as follows:

  • SSL (Secure Socket Layer ) Encryption
  • PCI DSS-Payment Card Industry Data Security Standard
  • IP (Internet Protocol) blocking
  • DDoS- Denial Of Service
  • Encryption of Database
  • Encryption of Password
  • Backup-Database

SSL (Secure Socket Layer) Encryption

SSL is Security based technology for maintaining the encrypted data via the link between the web browser and the webserver. Host provider provides the SSL certificate and the same has to be installed for implementing SSL (Secure Socket Layer) encryption.

You can understand the same from the website address bar. The address indicates https:// in the address bar of the website. The website without SSL indicates http:// in the address bar of the website and it shows that it is an insecure website.

If the customer submits any of the data related to his credit card details, it means the data is transferred between the server and the client in the plain format and it is prone to unauthorized access or hacking.

PCI DSS-Payment Card Industry Data Security Standard

The PCI DSS (Payment Card Industry Security Standard) is a standard for the security required by all the suppliers of the credit card.

Card suppliers should be PCI compliant. This standard should be followed by all the organizations which process, store or transfer the cardholder details or data. So the MLM software and the websites must comply with PCI.

Its main theme is to prevent fraudulent activities involved in this. PCI Security Standards Council administers the PCI standard. If anyone is not PCI compliant, you may lose eligibility to accept payments via credit card completely and also need to face the charged fine.

IP Blocking

IP refers to Internet protocol, which is provided by the cloud service providers and the software. This IP blocking service is used by the organization to block a group of people or the individual to access your website. IP blocking is important in case of data security, in case of any fraudulent activities monitored, the IP can be blocked. The same capability should be offered by your MLM software to block any IP or a range of IP’s.

DDoS-Denial of Service

DDoS refers to a Distributed Denial of Service Attack. It is a service attack and not the security feature.

Any security feature to be included in your MLM software to prevent this cyber-attack. This attack prevents the customers to access your website and it temporarily blocks the website access by increasing the illegal traffic to the websites.

This cyber will make the website to respond slowly due to illegitimate heavy traffic produced by hackers. Thus the MLM software should follow certain actions or plan to implement any security feature to overcome this DDoS attack.

Encryption of Database

To prevent the data from being vulnerable to any malicious activities or fraudulent activities, your MLM software should implement strong encryption techniques.

NSA (National Security Administration) defines the rules and regulations to store the data of credit card.

To avoid storing credit card data in the plain format, the encryption techniques will be useful. It should be taken care to store the security code of the credit card data in the encrypted format. Overall the database will be secured with encrypted data.

Encryption of Password

In the MLM software, the password you enter in any part of the application should be in the encrypted format. Make sure that the software provider uses MD5 encryption technique to store the password in the encrypted format.

If the passwords are stored in the plain format, then it is more prone to hacking or any fraudulent activities to obtain unauthorized access to the accounts of the customer and the distributors. They can also be able to access the admin account where it affects the entire business operations.


Backup also falls under the security measures to be taken in your MLM software. If the entire data related to your customers, distributors, commission payments, commission plan, merchant account, product details are lost, then it will affect your MLM business drastically.

To restore the data in case of any data loss, you need to have a backup of MLM software. MLM software should offer the daily or weekly backup of the data to avoid data loss.




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