Guideline to start your own Multilevel Marketing/Direct selling company
Guideline to start a MLM/Direct Selling Company
Multilevel marketing/Direct selling business is a widely accepted form of business; it is inevitable, Word-Of-Mouth remained as one of the top list in mind in buyer’s decision journey. Having distributors or members presenting your products turns end consumer into mobile sales force based on personal product usage experience and review to contribute sales volume to the company.
Conventionally MLM focus on these areas, wellness product, health supplement, beauty, home care, personal care… etc. It has now evolved and implemented in the educational industry, clothing, and even the banking industry is in the form of referral.
As you can see, MLM can be a viable opportunity. There’s a lot successful players, Amway, Mary Kay, Nuskin, Young Living, World Venture and many more.
So, have you ever been wondering how to start an MLM business? Where do you begin? What does it require? Do you have a product or service you want to sell? How can you be sure if there’s a market? Will copying a successful network marketing company’s compensation plan work for you? These are just a few of the thousands of questions anyone seeking to successfully start a multilevel marketing business must answer.
If you have been thinking with how to start your own MLM business but do not know how to go about it, then you should consider going through this article; it will give you the needed guide and direction. So, put on your entrepreneurial hat and let’s proceed.
Product / Service
Think of a product/service and choose a market that you would like to launch. Once you decide on a business that fits your goals, evaluate your idea and your targeted market.
- Who will buy your product or service?
- Who is the target market?
- Who will your competitors be?
For example, a company that retails makeup and related cosmetics can only appeal to female folks and a company that retails aftershave and related products can only appeal to male.
Therefore, it is better to diversify your company’s products/ services, to attract different people to come for your products/services.
Compensation Plan
Also called payout plan, to reward all your distributors/member by giving them commissions as soon as they recruit a new member or made purchases from your company. Different products and different commission schemes result in the drastically different outcome so don’t assume that there’s anyone plan that’s always going to work well.
Market analyzing is very needful that you analyze the existing MLM business in and outside of your area, know how many there are. You would be required to check the existing competition, as well as know their strengths and weaknesses. Knowing the weaknesses of the existing MLM businesses around you means that you would be able to learn from their mistakes and in turn come up with a better and more preferred MLM company devoid from the mistakes and weaknesses of others.
Organizational and Management Setup
The success of any MLM company depends on building a solid organizational structure. Essentially, the Organization and Management section of your business plan covers two main areas:
- The Organization, or how your business is structured and the people involved.
- The Management Team or details about what your team brings to the business. Within these sections, you have specific areas to cover about how your business is structured and who’s involved.
For example, a purchase decision for MLM Software Solution. Use your commission-payment software to calculate the commissions of all future distributors. Create an instruction manual for all distributors, highlighting various ways to advertise their network marketing businesses. Create a distributor’s kit for all potential dealers, which includes the instruction manual, a catalog, price list, and order forms.
Effective management ensures profitability to the company.
Set up your business!
Multi-level marketing is the new wave of the future. If you decide to start your own MLM business today, one of the major challenges you are likely to face is the presence of well-established MLM companies and also retailers or businesses who are selling same products or offering same services that you intend selling or offering.
The only way to avoid this challenge is to create your own market; concentrate on a location that you can easily penetrate. If you can successfully create a unique product or services, you are likely going to experience little or no competition.
Do research and survey in order to perfect your MLM business. Ensure that you selected a product or service that is easily sellable and of course, formulate a good reward system for distributor under your scheme. You should also ensure that you conduct thorough studies and market survey before launching your MLM Company.
