Are you thinking of starting your own network marketing company?
You may have gained experience working for one, and the idea of owning a similar business might have appealed to you. Are you interested in knowing what starting one entails? Find out the basics to starting an MLM company from our guide.
If you have been working as a distributor for an MLM company, you may have thought of starting your own company at one point or another. Seriously, you are up to a new challenge that is more complicated than getting your downlines to perform well.
Structuring an MLM Company
MLM is a tough business.
You want to pursue is focussed on multi-level marketing or network marketing, your top priority over other concerns that traditional business owners bother themselves is the structure of your MLM. This plan will be the basis on how your MLM business will operate – how it would promote the product, how to attract and build the network, how to provide support to every network member, how will payments be done, among others. You might be confident enough to do everything on your own, but if you are doing it for the first time, it could be well if you contact someone who has an experience on this to design one for you, or at least hire a consultant. You could further do well hiring other professionals to help you in matters. Visit MLM startup forums to connect with people and get leads to helpful resources.
Preparing to Start an MLM Company
Ideally, you must have a real product or service to offer (this usually differentiates a legal MLM company from a pyramid scam). A real product means a thing of utility that you have discovered or developed and which, advantageously, hold a patent of. And this better means not just another food supplement but something with great potential to appeal to a big market -- because it is the first of its kind, or consumers have a great need for it. This means having to think of manufacturing the product and having it named and packaged (which by the way you can "delegate" to a contract manufacturer).
Anyhow, you need to do your research, ensure you have a decision on what types of products or services you want to sell or promote.
Taking the easier way, you can instead start an MLM company for a manufacturer of a product that is in need of a good marketing
- And yet easy doesn't mean you simply look up a list of company names and choose. It still means doing research across industries
- And if you find one, you have to evaluate whether investing resources and money pursuing your plan is worth the risk that the project will succeed or fail. We go back to the kind of product or service you want to promote, whether it has potential to generate a customer following and whether you have target affiliatory contacts to start with as a background for your plan.
MLM Software - The Engine of the Machine!
"Having" great software won’t recruit one single distributor for you. Having said that, lousy software and inferior support will no doubt ruin what might have been a tremendous business opportunity. This business is a numbers business. It is built on recruiting, payouts on thousands of generations, genealogy reports to thousands of distributors, timely calculation and payout of commission checks to vast networks of sales people. The moment you fail in the technology area, you will lose confidence amongst your distributors. Prepare to watch sales, recruitment, retention and momentum plunge to ocean depths. Recovery may never occur.
Look for established providers with track records with established companies, but that is not to say that you should not "hold" their feet to the competitive fire. Established MLM software companies all bring different but important strengths to the table. Most major providers also offer design solutions for the MLM startup that involves web-based software support that can grow to licensed onsite technology as the company grows
Important Rules to Keep in a Very Safe Place
- MLM Legal - Don’t Leave Home Without It!
- Your Trademark - Your Life!
- MLM Business Experience - Possess it or Buy it!
- MLM Technology and Software - The Engine of the Machine!
- Get the Product Right the First Time!
- Compensation Plan - It Better Be Good!
- Clear Agreements Between Owners
- Attitude - The Three P’s-Passion, Patience and Persistence
- This Advice from Experience