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MLM Profit and Loss Calculator – Best MS Excel Alternative

Multi level Marketing – The Golden Words to Earn Big

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How Infinite MLM Calculator Works: A Step-by-Step Guide

Step 1: access the infinite mlm calculator, step 2: choose your mlm plan, step 3: input key metrics, step 4: review and calculate, step 5: view real-time results, step 6: analyze and optimize, step 7: repeat as necessary, meet the author.

MLM Content Strategist at Infinite MLM Software

With several years of experience, the author is a master of network marketing. She has written about a range of fascinating topics to get readers into the multilevel marketing industry. The author enjoys keeping an eye on network marketing in her own time and assisting marketers in quickly building their empires in the industry. She often publishes diverse MLM topics and simplifies the best tactics for becoming a fruitful multi-level marketer. Aside from this, the author also specializes in delving into researching productivity and time management.

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Are you on the lookout for a cost-effective software solution with advanced features for your MLM business? Infinite MLM software might just be the thing for you.

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• Multi level Marketing
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• Calculate Commission with Infinite MLM Calculator

• Multilevel Marketing Commissions

MLM Commission Calculator

This tool will help you calculate commissions for your multi-level marketing (MLM) efforts. First enter the average monthly personal volume (PV) of sales per associate. Then, fill in the fields provided in the matrix, input the needed information for those working on your down-line. For each level, this includes commission percentage, number of partners, and the monthly commission for that particular level.

Press CALCULATE, and you’ll instantly see a total monthly commission for your multi-level marketing efforts.

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How to Calculate Multilevel Marketing Commissions

If you've ever suffered the nuisance of the Avon lady at your door or a vacuum salesman pushing his wares in your neighborhood, you've encountered multilevel marketing. Also known as network marketing, multilevel marketing involves distributors selling the public products directly in most cases. These representatives then make commission on their sales as well as the sales of people they recruit.

The illegal form of this marketing plan is known as a pyramid scheme . If the money distributors make comes from how many people they recruit and their sales to those recruits, the operation is likely illegitimate. However, if distributors' money comes from sales to the public, the company has a multilevel marketing (MLM) plan, which is legal.

Along with bonuses, the commissions that independent contractors receive for their sales are their compensation. The amounts of these commissions will depend on the compensation structure of the multilevel marketing firm. Read on to learn how companies with the following multilevel marketing compensation plans calculate commission.

Unilevel Plan

Arguably the simplest compensation structure , unilevel plans revolve around a first tier of distributors. Although companies can restrict the number of recruits that distributors enroll under them, a unilevel structure places no limits on width. In other words, every individual the distributor recruits will come in under them in the organizational hierarchy, and the distributor will receive a certain percentage of everything the recruits buy and sell.

Stair-Step Breakaway Plan

The stair-step MLM plan is similar to the unilevel structure in that it has no width limitations and creates a first tier of sellers. The stair-step is unique, however, in that once a distributor reaches a certain level of sales, he can break away from his tier so he keeps more of his own sales. On the plus side, stair-step plans motivate distributors to work hard. The drawback is that distributors in upper tiers receive less income every time a breakaway occurs.

Matrix Plan

A matrix plan, also known as a forced matrix MLM plan, sets specific limitations on the depth and width of distributors' networks. For example, the firm might have a 5-by-6 matrix, meaning that a distributor must bring in five people on the initial tier and will make money helping that tier do the same for as many as six layers of depth. The matrix plan is relatively simple to implement but requires constant modification to sustain.

Binary Plan

Binary plans tightly restrict width but are very generous with depth limits. In binary plans, distributors recruit two people for the tier below them, and then each of those two recruits two more. The firm calculates distributors' sales points based on each leg of the distributor's network. The distributor receives commission based on the leg that receives fewer points. This motivates distributors to keep all aspects of their networks selling well.

Once you understand these four basic plans, you can use an online calculator to determine specific commissions for multilevel marketing. You will need to know the commission percentage as well as the number of partners/associates to determine the amount. Just remember to evaluate how the money is made in advance to ensure you are doing the right type of networking .

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Home » Sample Business Plans » Wholesale & Retail

How to Write a MLM Business Plan [Sample Template]

Are you about starting a starting a network marketing business? If YES, here’s a complete sample network marketing business plan template & feasibility report you can use for FREE to raise money . Marketing is one of the best tools that can attract loads of people. This is one of the very reasons why network marketing agencies have come to be.

If you have a natural penchant for marketing and meeting people, you may want to consider starting a network marketing agency business. This is a great way to start a trade anytime and anyway.

A Sample Multi Level Marketing Business Plan Template

1. industry overview.

Network marketing business is generally referred to as a business opportunity that is very popular with people looking for part-time and perhaps flexible means of earning additional income. Some of the leading network marketing companies in the united states are Forever Living Products, Fuel Freedom International, Avon Products, Mary Kay Cosmetics and Tupperware et al.

Network marketing which can also be referred to as Multi-level Marketing (MLM) or Pyramid selling or affiliate marketing et al is a controversial marketing strategy in which the sales force is compensated not only for the sales they able to generate, but also for the sales of the other salespeople (down – line / team members) that they recruit.

In the United States of America and of course in most countries of the world, companies that leverage of network marketing approach for compensation have been a frequent subject of criticism and lawsuits.

Generally, criticism has been focused on their similarity to illegal pyramid schemes, price fixing of their products, high initial costs for registering (the amount needed to purchase marketing kit and first products), emphasis on their recruitment strategies and loads of other technique that seems not to be plain and easy.

Research carried out by The Direct Selling Association (DSA) of which network marketing us under, shows that in 1990, 25 percent of members used network marketing, growing to 77.3 percent in 1999. By 2009, 94.2 percent of The Direct Selling Association (DSA) members were using network marketing, accounting for 99.6 percent of sellers, and 97.1 percent of sales.

The research also shows that companies such as Avon, Electrolux, Tupperware, and Kirby all initially used single level marketing to sell their products and later introduced network marketing compensation plans. The Direct Selling Association (DSA) in the United States has approximately 200 registered members, while it is estimated there are approximately 1,000 firms using network marketing in the United States alone.

It is important to state that network marketing companies operate in all the 50 states in U.S. Over and above, network marketing has become one of the best options for stay at home mothers or anyone who intend making money without registering their own personal business or directly working for an organization.

So if you have the intention of starting your own network marketing company, then you should ensure that you select a product that is easily sellable and of course a good reward system for network marketers under your scheme. You should also ensure that you conduct a thorough feasibility studies and market survey before launching your network marketing company.

2. Executive Summary

Good Life® Network Marketing, Inc. is a U.S based and world class network marketing company. We have been able to secure a standard and well – positioned office facility in a central business district in Carson City – Nevada.

We are a network marketing company that is set to compete in the highly competitive network marketing industry not only in the United States market, but also in the global market because our clientele base will not be restricted to just individuals in the United States.

Good Life® Network Marketing, Inc. will manufacture and retail cosmetic products in the United States and in other parts of the world via network marketing. Our business goal is to become one of the leading network marketing companies in the United States of America with a robust network of individual clients scattered all around the United States and the world.

Our back office staff members are going to be selected from a pool of talented and highly creative experts in and around Carson City – Nevada and also from any part of the world as the business grows.

We will make sure that we take all the members of our workforce through the required trainings that will position them to meet the expectation of the company and to compete with leading network marketing companies in the United States and throughout the globe.

At Good Life® Network Marketing, Inc., our network marketers and client’s best interest will always come first, and everything we do will be guided by our values and professional ethics. We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely.

We will cultivate a working environment that provides a human, sustainable approach to earning a living, and living in our world, for our partners, employees and for our clients. Good Life® Network Marketing, Inc. is founded by Rooney Wilberforce and his friend and business partner for many years Festus Holloway.

They both graduated from University of California – Beckley with BSc in Business Administration and Marketing respectively and they have a combine experience that revolves around market researching, sales, network marketing and advertising and business management et al.

3. Our Products and Services

Good Life® Network Marketing, Inc. was established with the aim of maximizing profits in the Network Marketing industry. We want to compete favorably with the leading network marketing companies in the United States of America and the world which is why we have but in place a competent team that will ensure that we meet and even surpass our network marketers and customers’ expectations.

We will work hard to ensure that Good Life® Network Marketing, Inc. do not just recruit network marketers and sell her products to clients in the United States of America, but also for clients in other parts of the world. Our products and services are listed below;

• Sell of cosmetic products via network marketing model (reward network marketers under our scheme)

4. Our Mission and Vision Statement

• Our vision is to establish a standard and world class network marketing company whose products and brand will not only be accepted in the United States of America, but also in other parts of the world.
• Our mission is to become amongst the top 20 network marketing companies in the world; a company that will be known for sincerity and one of the best reward system for network marketers.
• We want to build a network marketing company that can favorably compete with other leading brands in the network marketing agencies industry.

Our Business Structure

Good Life® Network Marketing, Inc., is a network marketing company that intend starting small in Carson City – Nevada, but hope to grow big in order to compete favorably with leading network marketing agencies in the industry both in the United States and on a global stage.

We are aware of the importance of building a solid business structure that can support the picture of the kind of world class business we want to own. This is why we are committed to only hire the best hands within our area of operations.

At Good Life® Network Marketing, Inc., we will ensure that we hire people that are qualified, hardworking, and creative, result driven, customer centric and are ready to work to help us build a prosperous business that will benefit all the stake holders (the owners, workforce, network marketers and customers).

As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of five years or more as agreed by the board of trustees of the company. In view of the above, we have decided to hire qualified and competent hands to occupy the following positions;

• Chief Executive Officer
• Creative Director

Network Marketing Specialist

Human Resources and Admin Manager

• Sales and Marketing Executive

Network Marketers / Freelance Marketers

• Client Service Executive / Call Center Agents

5. Job Roles and Responsibilities

Chief Executive Officer – CEO:

• Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions; providing educational opportunities.
• Responsible for providing direction for the business
• Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
• Responsible for signing checks and documents on behalf of the company
• Evaluates the success of the organization

Creative Director:

• Serves as project manager of the organization; works directly with the product manufacturing team and the network marketing team
• Responsible for designing concepts and winning business proposals for the organization
• Develops strategic plan by studying technological and financial opportunities; presenting assumptions; recommending objectives.
• Accomplishes subsidiary objectives by establishing plans, budgets, and results measurements; allocating resources; reviewing progress; making mid-course corrections.
• Coordinates efforts by establishing procurement, production, marketing, field, and technical services policies and practices; coordinating actions with corporate staff.
• Builds company image by collaborating with customers, government, community organizations, and employees; enforcing ethical business practices.
• Maintains quality service by establishing and enforcing organization standards.
• Maintains professional and technical knowledge by attending educational workshops; reviewing professional publications; establishing personal networks; benchmarking state-of-the-art practices; participating in professional societies.
• Makes certain that operations and marketing department perform efficiently, coordinate employee efforts, and facilitate communications between management and employees
• Part of the team responsible for training network marketers / freelance marketers
• Ensures that the organization work in line with international best practices.
• Responsible for handling core network marketing services such as reward system, monitoring team progress, expanding the scope of the network and penalizing erring members under our network.
• Serves as compliance and quality assurance manager for the organization
• Handle other related network marketing advisory and consulting services
• Responsible for overseeing the smooth running of HR and administrative tasks for the organization
• Designs job descriptions with KPI to drive performance management for clients
• Regularly hold meetings with key stakeholders to review the effectiveness of HR Policies, Procedures and Processes
• Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
• Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
• Defines job positions for recruitment and managing interviewing process
• Carrying out staff induction for new team members
• Responsible for training, evaluation and assessment of employees
• Responsible for arranging travel, meetings and appointments
• Updates job knowledge by participating in educational opportunities; reading professional publications; maintaining personal networks; participating in professional organizations.
• Oversees the smooth running of the daily back office activities.

Sales and Marketing Manager

• Manages external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
• Models demographic information and analyze the volumes of transactional data generated by customer
• Identifies development opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of development projects.
• Writes winning proposal documents, negotiate fees and rates in line with organizations’ policy
• Responsible for handling business research, market surveys and feasibility studies for clients
• Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
• Develops, executes and evaluates new plans for expanding increase sales
• Creates new markets cum businesses for the organization
• Empower and motivates the sales team to meet and surpass agreed targets

Accountant / Cashier:

• Responsible for preparing financial reports, budgets, and financial statements for the organization
• Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
• Responsible for financial forecasting and risks analysis.
• Performs cash management, general ledger accounting, and financial reporting for one or more properties.
• Responsible for developing and managing financial systems and policies
• Responsible for administering payrolls
• Ensures compliance with taxation legislation
• Handles all financial transactions for Good Life® Network Marketing, Inc.
• Serves as internal auditor for Good Life® Network Marketing, Inc.
• Responsible for selling the company’s products (cosmetics products) via network marketing models and getting reward / commission
• Responsible for creating content / buzz words that will help attract more networks marketers
• Responsible for managing team members under his or her network
• Responsible for engaging internet users and people around his or her community to get help statistics and leads
• Liaising and working effectively With other our back office staff and network members to generate sales for the business

Client Service Executive

• Welcomes clients and potential clients by greeting them in person, online or on the telephone; answering or directing inquiries.
• Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
• Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
• Manages administrative duties assigned by the creative director in an effective and timely manner
• Consistently stays abreast of any new information on the organizations’ products, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients when they make enquiries.

6. SWOT Analysis

Good Life® Network Marketing, Inc. engaged the services of a core professional in the area of business consulting and structuring to assist our organization in building a well – structured network marketing business that can favorably compete in the highly competitive network marketing agencies industry in the United States and the world at large.

Part of what the team of business consultant did was to work with the management of our organization in conducting a SWOT analysis for Good Life® Network Marketing, Inc. Here is a summary from the result of the SWOT analysis that was conducted on behalf of Good Life® Network Marketing, Inc.;

Our core strength lies in the power of our team; our workforce. We have a team of creative, result driven and highly proficient network marketing expert, a team with excellent qualifications and experience various niche areas in the network marketing agencies industry and other related industry.

Aside from the synergy that exist in our carefully selected back office staff members and network marketing experts, our products are easily marketable and our reward system is one of the easiest amongst network marketing companies and will be guided by best practices in the industry.

As a new network marketing company in Carson City – Nevada, it might take some time for our organization to break into the market and gain acceptance especially from top experienced network marketers in the already saturated and highly competitive network marketing industry; that is perhaps our major weakness. Another weakness is that we may not have the required cash to pump into promoting our business the way we would want to.

• Opportunities:

No doubt, the opportunities available in the network marketing industry is massive especially when you are ready to play by the books and also considering the number of individuals who would not only want to make use of our cosmetic products, but would also want to make money by selling the products as independent marketers, recruiting down – lines, building a robust network and earning good commission from doing same.

As a standard and world class network marketing company, we are ready to take advantage of any opportunity that is available in the industry.

Aside from unfavorable government policies, just like any other business, one of the major threats that we are likely going to face is economic downturn. It is a fact that economic downturn affects purchasing / spending power.

Another threat that may likely confront us is the arrival of a network marketing company or even a company retailing same cosmetic products like us in same location where our target market exist and who may want to adopt same Business model like us.

7. MARKET ANALYSIS

• Market Trends

If you are conversant with network marketing business, you will agree that it is quite challenging for them to survive that tough and unfriendly terrain that they are expected to operate in. As a matter of fact, most people still see network marketing companies as fraudulent, with a very difficult reward system.

In view of that, most network marketing companies are trying as much as they can to make people believe that they are genuine and are out there not just to make profits, but also to help people – those under their network marketing scheme make additional income without becoming a full – time employee of the organization.

Another notable trend in the network marketing industry is that most network marketing companies go beyond just giving commissions to network markets under their company when they sell their products or recruit down – lines under their network, but also encourage them by rewarding them with mouthwatering gifts when they hit a milestone.

Such gifts go beyond electronics, and cars et al. Some of them win all expense paid trips to notable tourist destinations as a result of their work.

This is one of the reasons why no network marketing company survives without constantly throwing out promos that will encourage and motivate the team to continue to perform thereby creating a win – win situation for the company and of course for the network marketers.

8. Our Target Market

Before starting our network marketing company, we are certain that there are loads of people out there; employed and unemployed who would want to make money and get their life going or make addition income from a business that is flexible.

In view of that, we have created strategies that will enable us reach out to stay at home moms, unemployed, employed and student et al who would want to make cool cash from using our products, and also referring or selling our products.

We have conducted our market research and survey and we will ensure that we meet and surpass the expectations of our clients Below is a list of the people and organizations that we have specifically market our product and network marketing services to;

• Unemployed people
• Employed people
• Corporate executives
• Business men and Business women
• Entrepreneurs and Start – Ups

Our Competitive Advantage

Surviving as a network marketing company goes beyond having the right products, but also having a full grasp of the network marketing industry, playing by the books, and having a good and easy reward system that will encourage people to join your network with little or no stress

We are quite aware that to be highly competitive in the network marketing industry means that you are not only expected to be able to retail good and reliable products and excellent customer services, but you must be result driven and able to create a network marketing system that everyone out there would not only find it easier to understand, but would want to freely join and recommend people to join.

No one would want to continue to remain as member of your network marketing company if don’t always meet up with the target date of paying out commissions or earnings as the case may be.

Our competitive advantage lies in the power of our team; our workforce. We have a team of creative, result driven and highly proficient network marketing experts, a team with excellent qualifications and experience various niche areas in the network marketing industry and other related industry.

Lastly, all our employees (back office staff members) and network marketers will be well taken care of, and their welfare package will be among the best within our category (startups network marketing companies in the United States) in the industry. It will enable them to be more than willing to build the business with us and help deliver our set goals and achieve all our business aims and objectives.

9. SALES AND MARKETING STRATEGY

• Sources of Income

Good Life® Network Marketing, Inc. is established with the aim of maximizing profits in the network marketing industry and we are going to go all the way to ensure that we do all it takes to meet and surpass the expectations of all our network marketers that will enroll in our company.

Basically, Good Life® Network Marketing, Inc. will generate income by offering the following network marketing services and other related services;

10. Sales Forecast

One thing is certain, there would always be loads of people out there; employed and unemployed, students, business men and business women et al, who would want to make money and get their lives going or make addition income from a business that is as flexible as network marketing company.

We are well positioned to take on the available market in network marketing industry and we are quite optimistic that we will meet our set target of building a robust network marketers and generating enough income / profits from the first six month of operations and grow our network marketing company to favorably compete with the likes of Forever Living Products, Fuel Freedom International, Avon Products, Mary Kay Cosmetics and Tupperware et al.

We have been able to critically examine the network marketing space and we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projection are based on information gathered on the field, our products (cosmetics products) and some assumptions that are peculiar to similar startups in Carson City – Nevada.

Below are the sales projection for Good Life® Network Marketing, Inc., it is based on the location of our business and of course the kind of products we want to retail and target market;

• First Fiscal Year-: $250,000
• Second Fiscal Year-: $700,000
• Third Fiscal Year-: $1.5 million

N.B : This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same products ( cosmetics products ) and network marketing model as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.

• Marketing Strategy and Sales Strategy

We are mindful of the fact that there is stiffer competition in the network marketing industry; hence we have been able to hire some of the best marketing experts to handle our sales and marketing concerns.

Our sales and marketing team will be recruited based on their vast experience of the network marketing industry and they will be trained on a regular basis so as to be well equipped to meet their targets and the overall business goal of Good Life® Network Marketing, Inc.

Our corporate goal is to grow Good Life® Network Marketing, Inc. to become one of the leading network marketing brands in the United States of America and the world at large which is why we have mapped out strategy that will help us take advantage of the available market and grow to become a major force to reckon with not only in the United States of America but also in other parts of the world.

Good Life® Network Marketing, Inc. is set to make use of the following marketing and sales strategies to attract network marketer

• Introduce our network marketing company by sending introductory letters alongside our brochure to individuals, unemployed, business men and business women, students, religious organizations and key stake holders.
• Advertise our business in relevant business magazines, newspapers, and other media platforms.
• List our business on yellow pages ads (local directories)
• Attend relevant international and local expos, seminars, and business fairs et al
• Create different packages for different category of clients in order to work with their budgets and still accommodate them in our network
• Leverage on the internet to promote our business
• Engage in direct marketing approach
• Encourage word of mouth marketing from loyal and satisfied network marketers

11. Publicity and Advertising Strategy

We have been able to work with our in house brand and publicity consultants to help us map out publicity and advertising strategies that will help us walk our way into the heart of our target market. We are set to become the number one choice for people who reside in the whole of the United States and beyond which is why we have made provisions for effective publicity and advertisement of our network marketing company.

Below are the platforms we intend to leverage on to promote and advertise Good Life® Network Marketing, Inc.;

• Place adverts on both print (newspapers and magazines) and electronic media platforms
• Sponsor relevant community based events / programs
• Leverage on the internet and social media platforms like; Instagram, Facebook , twitter, YouTube, Google + et al to promote our products and network marketing brand
• Install our Bill Boards on strategic locations all around Carson City – Nevada
• Engage in road show from time to time in targeted neighborhoods
• Distribute our fliers and handbills in target areas
• Contact households, schools and religious organizations by calling them up and informing them of Good Life® Network Marketing, Inc. and the products and services we offer
• List our network marketing company in local directories / yellow pages
• Advertise our network marketing company in our official website and employ strategies that will help us pull traffic to the site.
• Ensure that all our staff members and network marketers wear our branded shirts and all our vehicles are well branded with our company logo et al.

12. Our Pricing Strategy

At Good Life® Network Marketing, Inc. we will keep the prices of our products and starter packs / kits below the average market rate for all of our network marketers / customers by keeping our overhead low and by collecting payment in advance from network marketers who would sign into our network marketing scheme.

• Payment Options

At Good Life® Network Marketing, Inc., our payment policy will be all inclusive because we are quite aware that different people prefer different payment options as it suits them. Here are the payment options that we will make available to our clients;

• Payment by via bank transfer
• Payment via online bank transfer
• Payment via check
• Payment via bank draft
• Payment via mobile money
• Payment with cash

In view of the above, we have chosen banking platforms that will help us achieve our plans with little or no itches. Our bank account numbers will be made available on our website and promotional materials to network marketers / clients who may want to deposit cash or make online transfer for the purchase of our starter pack / kit.

13. Startup Expenditure (Budget)

In setting up any business, the amount or cost will depend on the approach and scale you want to undertake. If you intend to go big by renting a place, then you would need a good amount of capital as you would need to ensure that your employees are well taken care of, and that your facility is conducive enough for workers to be creative and productive.

This means that the start-up can either be low or high depending on your goals, vision and aspirations for your business. The materials and equipment that will be used are nearly the same cost everywhere, and any difference in prices would be minimal and can be overlooked.

As for the detailed cost analysis for starting a network marketing company; it might differ in other countries due to the value of their money. However, this is what it would cost us to setup Good Life® Network Marketing, Inc. in the United of America;

• Business incorporating fees in the United States of America will cost – $750.
• The budget for Liability insurance, permits and license will cost – $3,500
• Acquiring an office space or warehouse that will accommodate the number of employees and our products (cosmetic products / starter pack) for at least 6 months (Re – Construction of the facility inclusive) will cost – $150,000.
• Equipping the office (computers, printers, projectors, markers, servers / internet facility, furniture, telephones, filing cabinets, and electronics) will cost – $30,000
• Amount required to purchase the needed software applications – $3,500
• Launching an official Website will cost – $500
• The cost for purchase of the required software applications (CRM software, Accounting and Bookkeeping software and Payroll software et al) – $10,500
• Amount need to pay bills and staff members for at least 2 to 3 months – $70,000
• Additional Expenditure such as Business cards, Signage, Adverts and Promotions will cost – $5,000
• Miscellaneous – $5000

Going by the report from the market research and feasibility studies conducted, we will need about two hundred and fifty thousand ( 250,000 ) U.S. dollars to successfully set – up a medium scale but standard network marketing company in the United States of America.

Generating Funding / Startup Capital for Good Life® Network Marketing, Inc.

Good Life® Network Marketing, Inc. is a business that will be owned, financed and managed by Rooney Wilberforce and his friend and business partner for many years Festus Holloway. They are the sole financial of the business which is why they decided to restrict the sourcing of the start – up capital for the business to just three major sources.

These are the areas we intend generating our start – up capital;

• Generate part of the start – up capital from personal savings and sale of his stocks
• Generate part of the start – up capital from friends and other extended family members
• Generate a larger chunk of the startup capital from the bank (loan facility).

N.B: We have been able to generate about $100,000 (Personal savings $85,000 and soft loan from family members $15,000 ) and we are at the final stages of obtaining a loan facility of $150,000 from our bank. All the papers and document has been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.

14. Sustainability and Expansion Strategy

The future of a business lies in the numbers of loyal customers that they have the capacity and competence of the employees, their investment strategy and the business structure. If all of these factors are missing from a business (company), then it won’t be too long before the business close shop.

One of our major goals of starting Good Life® Network Marketing, Inc. is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running.

We know that one of the ways of gaining approval and winning network marketers and potential marketers over is to our network marketing services is to ensure that we create a reward system that is easy and fair to all, and also to make our starter pack / kit highly affordable.

We will also ensure that at regular intervals we come up with mouthwatering promos that people who are not interested in network marketing will find it difficult to resist.

Good Life® Network Marketing, Inc. will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare is well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and re – training of our workforce is at the top burner of our business strategy.

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more as determined by the board of the organization. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List / Milestone

• Business Name Availability Check:>Completed
• Business Incorporation: Completed
• Opening of Corporate Bank Accounts various banks in the United States: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Securing a standard office facility and warehouse facility in a good location: Completed
• Application for business license and permit: Completed
• Purchase of All form of Insurance for the Business: Completed
• Conducting Feasibility Studies: Completed
• Generating part of the start – up capital from the founders: Completed
• Writing of Business Plan: Completed
• Drafting of Employee’s Handbook: Completed
• Drafting of Contract Documents: In Progress
• Design of Logo for the business: Completed
• Secure trademark for our products: In Progress
• Graphic Designs and Printing of Packaging Marketing / Promotional Materials: Completed
• Recruitment of employees: In Progress
• Purchase of the Needed furniture, office equipment, software applications, electronic appliances and facility facelift: In Progress
• Creating Official Website for the business: In Progress
• Creating Awareness for the business: In Progress
• Health and Safety and Fire Safety Arrangement: In Progress
• Establishing business relationship with vendors and key players in various industries: In Progress

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From Launch to Prosperity: Your Full Guide to Running an MLM Business

Launching a business isn’t just about having a brilliant idea—it’s about creating a robust framework for success. Entrepreneurs who thrive don’t merely rely on passion; they strategically align their ventures with growth objectives, customer needs, and innovative solutions.

Starting a business requires taking steps forward to achieve growth, or you will revert back to safety. The same applies to MLM businesses, so let’s understand all about the MLM business model and dive deep into a step-by-step guide to successfully starting your own multi-level marketing company.

This Article Contains:

Understanding Multi-Level Marketing (MLM)

An mlm business model: how does it work, getting started with an mlm business, how to grow your mlm business, final words.

MLM, also known as network marketing, is a legitimate business strategy employed by some direct sales companies to sell products or services.

Companies use multi-level marketing (MLM) as a business model to encourage their independent business owners or distributors to actively recruit new members into their business. This recruitment process results in the creation of a hierarchical structure known as a downline.

Here’s how it works

Existing members (often called distributors) promote and sell the company’s products or services to others. They also recruit new participants into the business.

A distributor earns a percentage of the sales of their recruits.

Participants are encouraged to bring in new contractors, creating a network or downline.

Multi-level marketing is significantly different from traditional businesses. Let’s understand the difference between MLM and traditional business models to gain more clarity on their working:

After understanding the differences, one may ask how an MLM business model works.

This complicated-looking business model, on the contrary, is simple and straightforward . Independent business owners reach out to interested individuals or members with a plan to create a win-win situation. Members who are interested in starting their own business and gaining financial freedom by being their own boss start their MLM business. Every individual involved in an MLM multi-level marketing is a business owner.

To understand how the MLM business model works one can think of a pyramid. The first independent distributor is hired directly by the direct marketing company. Let’s say in our example is Mr. A. Now, he recruits 5 more independent distributors who each turn around and recruit 5 more independent distributors, and so on.

Mr. A, as the sponsor or upline, recruits individuals into the multi-level marketing (MLM) company. These recruits, along with everyone they bring in, form his downline.

Also Read: Upline and Downline in MLM

Understanding the direction of these relationships is crucial because it directly affects the earnings within the pyramid. In most MLM setups, all distributors contribute a portion of their earnings both to the company and to those above them in the hierarchy.

Remember, clarity in these relationships ensures transparency and fair compensation for all participants.

Individuals starting their own MLM business can earn as follows:

An independent business owner's commission on sales.

Commissions from people who started their own businesses under them.

Individuals wishing to join the multilevel market may have to pay the registration fees. This may bring doubt about the legitimacy of MLM-based companies.

As discussed above, the multi-level marketing model is different from the traditional business model. The traditional blueprint model won’t be much of a help when building an MLM business. So, let’s dive into the step-by-step checklist to get started and eventually build your MLM business.

1. Choose your Product/Service

The first step, without a doubt, must be choosing your product or service. The product should appeal to buyers and encourage distributors to sell further. For this, it becomes essential to identify, research, and test potential products and services that have a Unique Selling Proposition (USP) or are distinct from similar products/services.

Next, shortlist products or services that can deliver 5X value to your end customer compared to existing products/services and test the interest levels of your target customers and potential distributors.

The other crucial factor in choosing a product or service is strong customer demand to ensure sales success for representatives. As a result, your MLM company will also be able to generate profits from retail sales to consumers, rather than just recruiting representatives. Consider utilizing digital marketing services to gather the necessary data for this process.

2. Draw up a Detailed and Realistic Business Plan

In a multilevel market, this step is again crucial to the success of your MLM business. One might hit a dead end if proceeding without a detailed and realistic business plan. A plan will clarify how to proceed and define your business goals, purpose, and vision. Additionally, a well-crafted business plan can attract potential investors if external funding is required. But what are the key points that your MLM business plan must include?

Define business objectives

Define correct business objectives after researching your niche; they must be challenging yet realistic.

Analyzing the market

Develop sample profiles for your target customers and key competitors. Determine the size and opportunities of your niche market. Identify your product and service's fit in the market by compiling and analyzing the data. Make sure there are no potential barriers.

Profit and loss projections

Based on the financial goals, market research, product and operating costs, estimate your anticipated revenues, profits and losses for the first five years.

Sales and marketing

An effective sales and marketing plan should outline how to promote products and services to buyers, identify how many distributors are needed, and map out marketing strategies, website designs, and budgets.

It is important to note that the above list is not exhaustive, and more pertinent points can be added.

3. Construct a Compensation Plan

Once you have selected a product or service and created a business plan, the next step is to develop a compensation plan for your MLM company.

You will use this plan to lay the foundation for your direct selling business, defining the terms and conditions for earning income, commissions on direct sales, or as an override bonus earned on downline product sales.

It is essential to balance your compensation plan to ensure it is a win-win for all parties involved. The plan should be reasonable, attractive to distributors, and profitable for the company. This will help you develop a compensation plan that is fair, competitive, and sustainable for your MLM business.

4. Raise Funds for Your MLM Business

Commencing a multilevel marketing company without securing adequate capital is ill-advised. So it's important to raise funds. There are two common ways by which MLM companies raise funds in multilevel markets, i.e., debt financing and equity financing.

Debt Financing involves applying for and receiving an interest-bearing loan from institutions like credit unions, banks, or Non-Banking Financial Institutions (NBFIs). On the other hand, Equity Financing entails exchanging ownership stakes in the company for cash investments sourced from various entities, including family members, friends, and investors, or through Initial Public Offerings (IPOs).

One can employ a combination of these financing strategies based on your company's vision, unique requirements, and expansion plans. Ultimately, the most suitable approach should be determined by considering the multiple factors discussed, as well as maintaining a healthy debt-to-equity ratio.

5. Set up a Merchant Account

A merchant account enables businesses to accept debit and credit card payments and is like a business bank account. It can also be considered as a bridge between your business account and your customer bank account.

Setting up a merchant account for your Multi-Level Marketing (MLM) organization requires careful consideration. Thus, before applying for a merchant account, ensure the following steps are taken:

Identification

Confirm that the individual signing on behalf of the company meets the criteria for being a principal signatory, such as possessing good personal credit.

Website Presence

Enhancing your website with comprehensive information about your business and products can significantly impact payment processors' decision to collaborate with you.

Application Details

Before proceeding, inquire about the refund policy for setup fees, as some payment processors charge non-refundable application fees, regardless of account approval. It's crucial to clarify such details upfront.

Given the unpredictable growth patterns and legal complexities linked to MLM businesses, anticipate a longer approval process for a merchant account. Initiate the application early to allow ample time for approval before your business launch.

When applying for a merchant account, provide detailed information about your business, including chargeback ratios, return policies, and compliance with regulatory standards.

6. Select the Best MLM Software

MLM software is the backbone of your business, handling everything from compensation plans to automating API access, electronic transactions, party plan solutions, promotions, and more. It's crucial to choose software that can scale up or down depending on your current and future needs and provide end-to-end solutions.

Take the time to research different solutions and identify companies with published case studies and positive customer reviews.

Also Read: 12 Must-Have MLM Software Features to Drive Growth to Your Business

7. Hire an MLM Attorney

Having an experienced attorney taking care of the legalities is always a good idea. An experienced attorney can support you at the various stages of your MLM business. Their expertise can guide you on product regulatory compliance, labeling, compensation structure, and international expansion.

When your company sells products through distributors, it's important to ensure their claims about the products are accurate. The FTC oversees these claims and looks for any false or misleading information about how much money can be made or the health benefits of the products. Having an MLM attorney on your team means you have a knowledgeable resource who understands the current laws that regulate the direct selling industry.

Even if you think you don’t need an attorney, reality dictates that at some point in time, your company will need one. So, it is better to build an attorney-client relationship as a proactive step.

8. Keep all Your MLM Records

The policy and procedure manual is a fundamental document for an MLM company, encompassing a wide range of topics, usually 50 or more. It is tailored to your specific business model, products, principles, and ethics. Establishing clear and thorough documentation is essential for an MLM company. Policies and procedures, such as those outlined below, form the core of your business rules and operating processes.

Products and Marketing Materials

Make sure you protect your products and marketing materials, whether they are physical or digital.

Customer Data Protection

Comply with local and global privacy laws to safeguard customer data.

Compensation Structure

Ensure it aligns with actual sales to real customers, avoiding misrepresentations.

Compliance Considerations

Monitor and manage claims representatives make about products and earnings, staying compliant with federal law.

When developing documentation, avoid duplicating content from other companies. Instead, work closely with an MLM attorney to create customized templates or draft original documents specifically for your business. Keep in mind that while it might seem tedious now, meticulous documentation will benefit your company in the long run by reducing legal risks and protecting your brand reputation.

9. Prepare for the pre-launch

You're on the brink of success, but there's still more to uncover about your market, customers, and products. For this, you can conduct a pre-launch, also known as a soft launch, which is essentially a limited release of your product or service to a much smaller audience. You can take advantage of a pre-launch, and this can become a stepping stone to success for your MLM business. Because it can provide invaluable insights about your products from your target audience.

This phase, ideally initiated at least 90 days before the official launch, this period can be used to build awareness, interest, and even pre-orders. By leveraging strategies such as sneak peeks, promotions, and limited availability, you can validate your product, generate excitement, and lay the groundwork for a successful launch. Additionally, creating a pre-launch video tailored to your product's price point is an effective way to captivate potential customers and generate anticipation.

10. Get ready for the final launch of your MLM company

Now is the time to launch your MLM business, but before you launch it, you need to assess your success by revisiting your business goals. These goals will serve as Key Performance Indicators (KPIs) to evaluate the success of your launch. To ensure each KPI is measurable, break down each goal into quantifiable elements.

As you execute your launch, stay on top of your KPIs and supplement them with insights from your representatives and customers. This will help you validate your goals and make necessary adjustments quickly.

To grow any business, the right plan of action is important. For this, we will cover the two fundamental pillars.

1. Select the Right Business Model

Choosing the right business model is crucial for your MLM enterprise, and there are several compensation frameworks to consider. The four most commonly used models are binary, matrix, uni-level, and stair-step breakaway.

The binary plan involves creating two lines of subordinates, with commissions based on the weaker leg's sales. The matrix plan has a limited-width strategy, with a specific number of distributors at each level. The uni-level plan is boundless in width and depth, with all distributors operating on the same level. The stair-step breakaway plan involves developing a team and establishing your crew after reaching a specific level.

When selecting an MLM compensation plan, consider your business goals and product. Your startup should provide a compensation scheme that benefits both the company and its distributors.

2. Solid Strategy and Team

To build a successful MLM startup, you need a solid strategy to hire dedicated and motivated individuals who believe in your product and vision. Above all, you need professionals who excel in network marketing and communication, as they will be responsible for promoting your products and recruiting others to do the same.

To hire the right professionals, start by identifying the positions you need to fill in your team. Then, recruit individuals based on their job profiles, skill sets, experience, and interview performance. During the interview, ask questions about their motivation for applying to the job to ensure they align with your vision and goals. There are various ways to find the right professionals, but it's essential to prioritize hiring individuals who share your passion and can help drive your business forward.

Do you want to kickstart your MLM Business?

Our reliable MLM software is the answer!

To build and grow your business, we provide the most steadfast and easy-to-use MLM software.

Business is a dynamic landscape where every decision can either propel your company forward or slow it down. As a result, an entrepreneur's decision can mean the difference between exponential growth and stagnation for their business. Choosing an MLM software can be one of those decisions.

Global MLM Software is one of the best marketing systems. Whether you are a new or established company, our MLM software is easy to use and has an extensive suite of tools to help your business build and grow. With minimal customization, you can also get your business off the ground quickly.

1. What are the common ways to raise funds for an MLM business, and which is more suitable?

MLM companies commonly raise funds through debt financing (interest-bearing loans) or equity financing (exchanging ownership stakes for cash investments). The most suitable approach depends on the company's vision, unique requirements, and expansion plans.

2. What is MLM, and how does it differ from traditional business models?

MLM, or multi-level marketing, is a legitimate business strategy where independent business owners sell products and recruit others, creating a hierarchical structure. Unlike traditional businesses, MLM relies on a commission-based structure and emphasizes individual sales.

3. How can I choose the right product or service for my MLM business?

Choosing the right product involves identifying, researching, and testing potential products with a Unique Selling Proposition (USP). Ensure the product appeals to buyers, encourages distributors to sell, and has a strong customer demand.

Want to have MLM Software for scalability? Here's the Solution

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Building a successful MLM business using a Monoline Plan

Building a successful MLM business using a Monoline Plan :

  Hey there, fellow entrepreneurs, future business leaders, and fellow business people!

Did you ever tried your hand in the Multi-Level Marketing (MLM), you will realize that it is a frenetic place with plenty of opportunities, hurdles, and a great deal of push. Today, we’re diving into one of the lesser-known but incredibly intriguing MLM strategies: the Monoline Plan

Picture this: such as a single line reaching the one never-ending horizon, where every link one can see is connected in a unbroken line of possibilities. That’s what Monoline Plan boils down to – a simple approach to building an MLM empire, one recruit at a time.

But how exactly do you harness the power of this unique plan to propel your business to success? No worries. because In this guide, we’ll go step by step on how you can build a successful MLM business and bring the Monoline Plan to your advantage.

So, grab your favorite beverage, a comfortable seat, and be ready to discover this fascinating monoline type of plan together. Let’s dive in!

What is Monoline Plan ?

The Single Leg Plan in Multi-level Marketing (MLM), also called ‘Monoline’ Plan or ‘Linear’ Plan, is the basic revenue sharing structure where the new entries are added to a level under previous members, following the ‘first come, first serve’ principle. The design has no rules on how wide or deep the climbing structure can be or how many legs it should go. Every time a newly-recruited individual joins the company, they are placed lower than other existing members. So, you are entitled to receive commissions, for every time a new individual is added. As a default, the Monoline Plan freezes all the benefits that this plan offers, as its simplicity and beauty attract people, who choose this MLM plan mostly due to its recruitment advantages and ease of management.

Here’s how you can build a successful MLM business using a Monoline Plan:

To build a successful MLM business using a Monoline You need to be up to the mark by knowing the best practices and major features of the monoline payments structure. The Monoline MLM Plan, also known as the single-leg MLM plan, is a straightforward model that emphasizes a single line of distributors. Here are some essential steps to succeed with a Monoline Plan:

Understand the Plan : The Monoline Plan operates on a first-come-first-serve basis, where members are placed in a single line structure. It offers benefits like fast growth, high compensations, and multiple positions for members.

Utilize Monoline MLM Software : Implement advanced Monoline MLM software to manage the single-line network efficiently. This software automates processes like member registration, commission calculations, and genealogy tracking.

Focus on Referrals : Since the plan rewards members for referrals, focus on building a strong network by referring new members. Referral bonuses, rejoin bonuses, and matching bonuses are key components of the Monoline Plan.

Encourage Active Participation : To prevent laziness and ensure active engagement, consider setting requirements for members to introduce a certain number of people to the business before receiving full compensation.

Offer Training and Support : Provide training, resources, and support to your team to help them succeed within the Monoline structure. Education on network marketing strategies and product knowledge can enhance performance.

Monitor Performance : Track the performance of your team members regularly and provide incentives based on their performance.  Recognizing and rewarding top performers can motivate others to excel.

Global Expansion : Leverage the global reach of the Monoline Plan by attracting members from different regions. Multi-language support and multi-currency transactions can facilitate international growth.

To sum up, the Monoline Plan can be regarded as a very promising and, at the same time, quite an efficient scheme of MLM business that enables entrepreneurs to obtain high profits through its simple model and recruiting skills. Persons can attain the best from Monoline plan just by understanding the fundamentals of the plan and putting the key strategies such as using the advanced MLM software, concentrating on the referrals, encouraging active participation, giving training and support, monitoring the performance and putting the plan global in practice. With commitment, comprehension and strategic implementation, the Monoline Plan can be the engine that will drive your MLM Empire, one recruit at a time.

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MLM Compensation: How to Build the Best Plan for Your Business

What is the best mlm compensation plan.

Every multi-level marketing (MLM) company relies on its compensation plan to motivate, recognize, and reward its field sales representatives. But MLM compensation plans are not “plug and play.” Every MLM company needs to do its homework to build the best compensation plan to fit its products, genealogy, and strategic goals .  

Determining the right compensation plan is one of the most important decisions an MLM leader makes. Design and build the right plan, and you’re able to incentivize and reward the hard-working field representatives who can make or break your business. Design and build a plan that pays too much or too little – or is too complex to explain – and you’ll see the impact almost immediately on your company’s bottom line.

Your MLM’s compensation plan best defines the terms and conditions for how representatives will earn income, as commission on direct sales or as an override bonus earned on downline product sales. An effective direct-selling compensation plan takes the pricing structure for the products and services being sold into account, as well as the selling behaviors your company wants to motivate and reward. The resulting plan is a delicate balance that works for both your sales representatives and your business.

Finding the MLM compensation balance

All MLM compensation plans are based on the company’s genealogy structure. Today, most MLMs craft a hybrid solution, with payouts based on both a placement genealogy and a sponsorship genealogy. The first step in building a balanced, effective plan is understanding the five most common types of payout options.

Types of Compensation Plans

1. breakaway plans.

Stairstep Breakaway compensation plans – also known as Breakaway plans – were created by the earliest MLM companies. As direct-selling representatives achieve defined personal and group volumes, they “break away” from their downline and start their own lines. Today, along with being somewhat difficult to explain to newly recruited representatives, Breakaway plans can cause representatives to be self-focused until they reach the breakaway rank. At that point, they often find it hard to change their approach to focus on the downline’s success to achieve higher ranks and earn leadership rewards.

2. Unilevel Plans

In contrast, Unilevel compensation plans keep things simple by typically using just one genealogy to pay. Representatives can sponsor as many people on their frontline as they want, but Unilevel plans limit the downline’s depth. For example, a Unilevel compensation plan might pay a 5 percent commission per level, up to seven levels.

3. Binary Plans

Binary compensation plans are built around only two downlines. The frontline is limited to just two other representatives, with all other sales representatives placed in tiers below the frontline. The result is a “two-leg” downline made up of two-representative-per-level tiers, with no limits on the depth of the downlines. Representatives are paid based on the volume in each of the legs rather than a percentage of the sales for multiple levels. This means a representative will earn commissions only from the lesser earning leg, known as the “pay leg.” To optimize their earnings, representatives must work as a team across the two downline legs.

4. Hybrid Plans

Today, many MLM companies opt for a hybrid plan, combining elements of different plans to better align with their objectives and goals. One example is a combination of Binary and Unilevel plans, with Binary payouts for initial sales volumes and Unilevel payouts for ongoing sales volume.

5. Matrix Plans

Matrix plans offer MLM companies more control over payout volumes by ensuring a fixed width and depth. For example, in a 3-by-9 matrix, each level is made up of three representatives, up to nine levels. This limits the number of people representatives can earn on and encourages representatives to strategize on the placement of personally sponsored reps in order to achieve the maximum payout and downline growth. With Matrix plans, successful representatives have a broader view of the organization, which calls for greater involvement while offering the potential for much greater rewards.

MLM compensation essentials

Designing a compensation plan to fit your organization isn’t a once-and-done exercise. The implementation and execution of your payout structures take ongoing focus. Adapting and evolving your comp plan is vital. As your organization grows and changes, you’ll need to be diligent to ensure your compensation plan is keeping up.

The basic plan types described above each have strengths and weaknesses. As a result, many MLMs use one of the primary plans as a foundation and incorporate other commission types into the structure to help accelerate growth. And, while each direct-selling organization must tailor its compensation program to fit the company’s objectives, the best MLM compensation plans share a few essential attributes.

Focus on customer sales

For MLMs, retail sales to customers who do not participate in the business are critical for both growth and compliance. When most sales are to the company’s field representatives rather than retail customers, the company is subject to FTC scrutiny and action.

Achieving the right amount of retail sales begins when you develop your product and services. First, do research to ensure you’re creating products that fill a gap and meet a need in the marketplace. Then, make sure you will be able to charge prices that retail customers are willing to pay while also covering your operating costs – including representative compensation. A little market research upfront helps to understand the opportunity and ensure there’s enough demand to achieve your growth objectives and enable representatives to build successful businesses.

Finally, build incentives into your compensation plan’s qualifications for higher level bonuses and ranks that encourage and reward representatives who create and nurture a healthy retail customer base.

Provide opportunities for ranks and recognition

Commission dollars and cents consume much of the attention when designing a compensation plan. However, the best mlm compensation plans are not only about the money. Recognition for achievements within the organization is also highly motivating. Build in opportunities for representatives to attain defined ranks within the organization that come with a new title as well as compensation.

As you set the criteria for different ranks, make sure they align with your company’s long-term goals, such as recruiting more reps, selling certain products, or increasing retail sales. Ranks or bonuses can also be used to reward representatives who actively support their recruits and remain active in both their own business and their personally sponsored business.

Ranks or recognition must blend motivation with a realistic stretch goal for a significant portion of your field representatives. When the parameters to reach a rank are too difficult, it can have a demotivating effect. But, if you make titles or recognition too easy to accomplish, you wind up rewarding nearly everyone, which dilutes the power of the recognition and can make retaining high-performing representatives more difficult.

Incorporate compression wisely

Compression within an MLM compensation plan bypasses ineligible or inactive representatives when determining rank qualifications or compensation in order to reward active representatives. There are two primary types of compression in MLM compensation – standard and dynamic. When standard compression is applied, an upline representative is paid as if the inactive representatives were not present in the genealogy. Dynamic compression excludes both inactive and ineligible representatives from the payout.

MLMs must use compression strategically. Over-use of compression can end up discouraging representatives from working together or disincentivizing the recruitment of additional representatives. The advantage of compression is that it allows representatives to get paid deeper into their organizations. It is best used to avoid punishing a representative with a reduced payout when a few people in the downline fail to meet payout requirements or have gone inactive during the period.

Add activity requirements

The right actions done consistently drive sales results. That’s why building in activity requirements to reward desired behaviors that lead to increased retail sales, representative retention, and company profits are an essential element in the best MLM compensation plans. For example, define the minimum amount of personal sales volume over a rolling period of time that’s required for representatives to maintain active status. Personal sales volume is the total sales volume from the representative’s personal orders and the orders placed by customers sponsored by a representative. Make sure your requirements don’t mistake personal sales volume for personal.

Learn more at  ByDesign.com  or contact us to  schedule a direct sales compensation plan demo .

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How to Write a Successful MLM Business Plan

July 25, 2012 By Terrel Transtrum

This article will help you refine how to write a successful MLM business plan.  As your ideas and dreams take root for starting and running a successful MLM, you will also realize that there is a lot to do.  Smarts and hard work will help.

What Is a Successful MLM Business Plan?

A successful MLM Business Plan is a comprehensive written presentation of your business idea.  A good plan outlines what the business really is, what it will do, how it will be funded, how it will achieve its objectives, and how it will be launched.  In addition to the standard elements of business plans, the successful MLM business plan tackles such complexities of such as forecasting compensation plan payouts, growth modeling, inventory planning in fast-growth environments, cash flow, and distributor attrition (inactive accounts).  An MLM Business Plan is especially useful for MLM startups seeking potential founding distributors, investors, and manufacturers who will offer favorable terms.

How Do I Get Started?

Start preparing your MLM business plan by tackling key questions.

• What will you really be offering and why will people buy it?
• Who will be the visionary that drives the business forward?
• Where will you get the money to launch and run your business?
• What market need will you be satisfying?
• How will your growth strategy work, and what assumptions are you relying on?

A successful MLM business plan should have the following sections:

1. Executive summary: This summary holds the reader’s attention and sparks their thinking as it reinforces your capabilities to effectively present your ideas.

2. Business description: This presents the framework for the MLM business plan and what it’s all about, what you are truly taking to market, why you have selected the MLM business plan for your marketing channel, and so forth.

3. Market strategies: After researching the target market and the true needs that your business offering will meet, present your findings and ideas, how the new MLM business will be positioned in the market, its differentiators, and what circumstances will assure success.

4. Competitive analysis: Present competitors, their products and strategies, and how the MLM startup will have a competitive edge.  Look beyond the world of network marketing and direct selling, for much of the competition exists in places you may not be looking.

5. Design and development: Present how will you produce, package, and market the service or product.  How will its design and function set it apart?  What will it look like when it’s ready?

6. Operations and management plan: Present the basics of how distributors will be served, how the business will operate, and what are the underlying operations strategies from the first day of launch.

7. Financial factors: The growth and financial model must include the discipline of income statement and cash flow analysis, and the better practice is to present key ratios that investors consider.

Potential investors often expect an appendix that presents the leadership team, supporting market research, and information on which you have relied to reach your decisions.

Starting and running a successful MLM business is exciting, and doing your homework is vital.  In addition to the resources available at the LaunchSmart website, including model business plan, financial forecasting for the MLM business plan, and a host of useful resources, the US Small Business Association offers an online tutorial on writing a business plan

The idea of starting a business is exciting, and doing the homework is critical.  In addition to tools and services that we provide, the US Small Business Administration offers an online tutorial on writing a business plan (http://app1.sba.gov/training/sbabp/index.htm).  We can also help you to fill in the important details relating to MLM Business Planning, or feel free to contact us for assistance in writing your complete MLM Business Plan.

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Multilevel Marketing (MLM)

A strategy that sells products and services through a non-salaried workforce in a pyramid-shaped commission system

What is Multilevel Marketing (MLM)?

Multilevel marketing (MLM) is a strategy that sells products and services through a non-salaried workforce in a pyramid-shaped commission system. The MLM strategy is also known as network marketing or referral marketing.

Companies that implement multilevel marketing encourage existing distributors to recruit new distributors, known as the “downline” of the existing distributors. Multilevel marketing is often confused with a pyramid scheme , but the latter is illegal.

• The multilevel marketing (MLM) strategy encourages existing distributors to recruit new distributors and has a pyramid-shaped commission system.
• Multilevel marketing distributors are independent and non-salaried. The distributors receive commissions on the sales made by themselves and their downline teams.
• Through multilevel marketing, companies can build up a large customer base with low sales costs.

How Multilevel Marketing Works

There are multiple layers of salesforce in multilevel marketing. The salesforce is known as distributors, who are independent non-salaried participants. There are two sources of income for a distributor. One is the commission of selling products to customers directly. The other one is through recruiting new distributors.

A distributor is not paid when a new (downline) participant is recruited. Yet, the sales from his downline distributors are also attributable to him. The distributor is compensated by a certain percentage of the sales from his downline team.

Many distributors with large-scale downline teams even do not sell products by themselves. They can receive sufficient commissions from their downline teams’ sales. The commission system effectively motivates existing distributors to build up or expand their downline teams. It allows the company to employ a bigger salesforce, and thus, access to a larger customer base.

Pros and Cons of Multilevel Marketing

The multilevel marketing strategy is beneficial to both the companies and the distributors. A company can gain access to a large customer base in a wide geographical range through multilevel marketing.

Since the distributors are independent, the company does not need to pay any fixed salaries , but only commissions when sales are made, which allows it to save sales expenses.

To distributors, multilevel marketing allows them to make extra income with sufficient flexibility. They can choose to work full-time or part-time to best adapt their schedules.

However, the distributors in the lower tiers may find themselves in a disadvantaged position. They usually work harder but make much lower incomes than the ones in the upper tiers, since the upper-tier distributors share the commission on their sales.

The high degree of flexibility and autonomy also comes with a drawback. Distributors only receive limited support from the company. The lack of sales training or support from expertise may make their sales efforts very inefficient.

Also, a multilevel marketing organization lacks control over its salesforce . It may experience damage to its reputation if some of its distributors are acting irresponsibly or not keeping trustworthy to customers.

Another concern of multilevel marketing is pyramid schemes. Pyramid schemes are fraudulent and can cause huge economic losses to participants.

Multilevel Marketing vs. Pyramid Scheme

A pyramid scheme looks very similar to multilevel marketing. It also expands the business by recruiting several layers of members, which form a pyramid system. However, pyramid schemes are illegal scams, while multilevel marketing is legitimate.

The major difference is that the primary goal of a multilevel marketing company is to sell actual products or services to its customers. Conversely, a pyramid scheme does not supply any real products or investments.

Participants are convinced that the company owns a valuable product or investment project. They only receive “promised payments” by recruiting downline participants. The more downline participants are recruited, the more people are dragged into the fraudulent activity.

Multilevel marketing distributors, especially the lower-tier ones, usually make small amounts of money. Participants deceived by a pyramid scheme typically lose all the money they invested in or paid as “membership fees.”

It is essential to identify whether the business model is legitimate multilevel marketing or the fraudulent pyramid scheme before joining. If a business places a greater focus on recruitment rather than sales of products, the business is very likely a pyramid scheme.

The Federal Trade Commission (FTC) is responsible for investigating MLM companies. In some cases, it is even difficult for the federal agency to determine whether the company is operating legally or not.

More Resources

CFI is the official provider of the Commercial Banking & Credit Analyst (CBCA)™ certification program, designed to transform anyone into a world-class financial analyst.

In order to help you become a world-class financial analyst and advance your career to your fullest potential, the additional resources below will be very helpful:

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When it comes to the wide range of MLM plans, the Binary Compensation Plan is the most famous one out there. In the given compensation plan, you are allowed to recruit two new members as the respective left leg & the right leg. Delivering the individual roles as your power leg & profit leg, these binary members help in laying the foundation of the entire compensation plan.

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In comparison to Binary MLM Calculator, the Matrix MLM Calculator helps in calculating the Matrix Compensation Plan having its own pre-defined set of the matrix. The matrix helps in fixing the depth as well as width to its maximum values effectively. One of the major benefits offered by the Matrix MLM Calculator is that it allows a maximum number of recruits to be included in the given compensation plan.

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If you happen to be a beginner in using the advanced MLM calculators, the Uni-level MLM Calculator is an ideal choice. The Uni-Level MLM Compensation Plan is known to provide an unlimited width. At the same time, it allows the users to recruit an unlimited number of recruits in a single line to the given frontline. By adding more recruits to the given line, the users can expect increased commissions. At the same time, there is no limitation on extending the frontline in the given compensation plan.

The Uni-Level MLM Calculator serves to be quite similar to both binary & matrix MLM calculators and helps in motivating the recruits at the same time.

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How To Start and Excel in Network Marketing or MLM Business

Network marketing or MLM is often compared to traditional forms of direct selling, such as door-to-door sales. This is because it involves selling products directly to consumers. However, the main difference between the two is the use of a network of distributors to generate sales and recruit new members. 

Table of Contents

How to Start A Network Marketing Business

Starting a network marketing business can be a good way to earn extra income or build a full-time business. It requires a lower start-up fund and you can build it as a side business without being required to leave your full-time job. But, like any other business, it requires careful planning and effort to be successful. 

You need to build the basics for the business in order to get success. 

First of all, research different network marketing or MLM business out there. There are so many different network marketing or MLM companies to choose from. Pick the right company that is trustworthy and the product that you use and like to start. If you are not interested in the product/service, you will be suffering to spend time building your business. 

Then, you should know who you want to serve. You can’t be serving everyone and not everyone is suitable to join a network marketing or MLM business. We call this the dream customer. And you should know where is your dream customer, and how to reach them. 

Next, decide on how you want to promote your network marketing or MLM business. There are two ways to grow your network marketing or MLM  business. Selling the product or recruiting new distributors. Both will need different ways to promote, both online and offline. 

It may be a 1-1 recruit session or an event to promote to your dream customer. 

And, like every business, you need to set your goals and track your progress. For example, you want to get a certain pin by when. Or how many recruits you want per month. Then, based on the goal, you can set your marketing plan and how many prospects you need. 

If your closing rate is 10%, then you will need to talk to 100 people to close 10 people a day. 

Finally, you will need to keep learning and growing as an expert in your market and industry to stay at the top of the business. People will only follow a reputable and successful leader. You need to show yourself as a thought leader in the business and be able to genuinely help your prospects to be able to grow. 

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Is network marketing or MLM A Pyramid Scheme 

Network marketing, also known as multi-level marketing (MLM), is a business model that involves selling products or services through a network of independent distributors. The commission is paid based on the sales and the tiered commission for your recruit’s sales. 

Pyramid schemes, on the other hand, are illegal in many countries. The concept is similar, but it’s focusing more on recruiting new members instead of selling the products. They rely on recruiting new members to bring in money to pay new recruiters. As long as there are new members joining the business, they can sustain their business. 

But once the scheme burst, they can’t sustain the business. The newer members might just lose their money. 

While both business models are similar, they are not the same thing. network marketing or MLM involves selling good products or services, while pyramid schemes don’t. 

In fact, some network marketing or MLM companies are even listed companies. They are being monitored closely by the regulators. Hence, it is safe to join a reputable one. 

Can Network Marketing Make You Rich

Like every business, there are successful business owners and less successful business owners. While it is possible to lead to wealth or more important financial freedom through network marketing or MLM, there is no guarantee. 

And the path is never easy. Now you are the business owner and the entrepreneur. You are responsible for the business’s success and your recruits’ success. In network marketing or MLM business, there are only two ways to make money. Recruit new members and sell products. 

To sell products, you can build your repeat customer group to make them your basic sales. You shall serve them best and build a good relationship with them so they will continue to buy from you. For example, if you are selling supplements, you will need to take them every day. And if you can serve them well, they will definitely buy from you repeatedly. 

To recruit, one question you need to answer here would be why they should join you. There are so many network marketing or MLM business owners out there. All competing in the same market and selling the same business plan. What’s your unique selling point, and how you can serve and train them to be successful network marketing or MLM owner? 

To get success in network marketing, requires hard work, dedication, and a willingness to learn and adapt continuously. Network marketing or MLM business starts with a network. The key to winning the business is building a large network of recruits and customers. 

It’s important to keep in mind that network marketing is a business. But many people don’t treat it that way. To get success, you need to plan and manage your team well. Not only you are building your own business, but you also need to know how to develop the talents of your recruits and help them to build a sustainable business together. 

Remember this, network marketing or MLM business is a long-term journey to build your business and grow your recruits. Your recruit’s success is your success as well, as you will be getting commissions from their sales as well. 

Why Network Marketing is Not For Everyone

Although we talked about so many benefits of joining the network marketing or MLM business, it might not be right for everyone. 

Starting a network marketing or MLM business is hard, network marketing or MLM  business are having a bad name due to some network marketers using the wrong tactics to promote it. In most cases, they will purposely look back to some old friends or strangers to promote it directly. They fail to realise that not everyone fits the network marketing or MLM business. 

By understanding the nature of humans and targeting the right prospects, you can target the right prospects easily. 

Another thing is the pyramid scheme concern. It’s not easy to change someone’s mind about the pyramid scheme. When you tell them about network marketing or MLM business, they will reject it directly. By showing your success, lifestyle and product on social media, they will be curious about how you can build such a successful business and will be more open to you.

It takes time to succeed. Building a network marketing or MLM business is a compounding effect business. You may start with a limited income when starting out. After putting in much effort, you may not see a big result. Get through that, the learning curve is steep. If you are not ready with the required skill, it takes time for you to challenge and transform yourself to win the game. 

It’s worth noting that not all network marketing companies are the same, and there are many legitimate businesses that use this model. However, it’s important to carefully evaluate any opportunity and do your research before committing to a particular company or opportunity.

Why Network Marketing or MLM Business Is the Best Business Opportunity to Start

Starting a network marketing or MLM business is important for most people. Some even say that it’s the best first business to start with. 

Low start-up cost and free entrepreneur training. 

Unless you are joining a pyramid scheme, a genuine network marketing or MLM business does not require high fees to join and you don’t need to make a monthly minimum purchase commitment. You may need to keep certain business total sales to keep your grade. But in general, you don’t need to invest or buy a huge inventory to start. 

Also, network marketing or MLM business allows you to work based on your own schedule and work from anywhere. This is great for people who is having other work like a full-time job or a full-time housewife. They can start and build their business anytime they are free. 

Next, as your upline would like you to be successful as well, you can leverage their experience to grow your business fast. They will help to set a plan for you to achieve the goals you want within the timeframe. Also, they can guide you when you are doing something wrong. 

And finally, the potential for passive income. When you have established your business, you can live by commissions only. by supporting your recruits well, you can get commissions based on their sales, even if you don’t sell anything. 

Also, some network marketing or MLM business does offer free annual travel if you are reaching a certain grade. And in most cases, these are five-star travels with everything paid off by the company. 

Looking at all these successes and benefits, it is important to note that achieving them is not easy. You need to work hard and be dedicated to putting in your time and effort to build it out. 

Even if you are building it as a side business, you should really take it seriously if you want to get huge success. It is a business that you are building. You may face different issues including the legal issue in it. 

How To Stand Out From Other Network Marketers

If you are new to a network marketing or MLM business, chances are other business owners might have targeted them before. Or they are buying from others. 

But that doesn’t mean that you cannot target and convert them be your recruits or customers. Network marketing is all about relationships. The better your relationship with your distributors and potential customers, the more they will trust you. Make an effort to know more people and understand their needs and interests. Be genuine when you are with them. People can sense if you are doing all these just to sell to them. 

By building your trust and credibility, it will be more likely for them to buy from you. 

Next, one of the most important things to stand out is to make an irresistible offer to your customers or distributors. This could be done by sending regular newsletters about your product and the latest update.

For example, if you are selling supplements, you can always send tips on health and fitness. And if you are going for recruitment, you can invite them for a workshop or an event. In the event, you focus on providing value to them, and only at the end of the event, do you start promoting the network marketing or MLM business opportunities.

Finally, to stay at the top, you should always take action consistently and stay up to date with the latest industry trends and product updates. This is the core competitiveness that you can offer to your prospects. 

By following these tips, you can set yourself apart from other network marketers and position yourself for success in this competitive industry.

How To Recruit For Network Marketers

Recruiting new members is an important part of building a successful network marketing business. Having an army of recruits will help your business to grow faster and ultimately get more commissions from their sales.

To do this, you should focus on building relationships with your potential customers and recruits. Join more activities or events to know more people and identify your prospects. Then, build a relationship with those who are a good fit for your business. 

Be authentic and genuine with them. You should not build a relationship just because you want to sell them. They are able to feel it and soon stay away from you. You need to be kind and real with them and explain clearly about the network marketing or MLM opportunities. 

Also, you should realize that not everyone is ready for joining the opportunity. They might be in a different stage in life or has other priorities. Don’t push them too much to join. But instead, keep showing your work and lifestyle. Once they are ready, they will approach you. And it’s much easier to close them at that time. 

So, leverage social media and online to build your reputation to recruit and sell your products more. By constantly posting about your lifestyle and your business, people will see what you are doing. Although they might not be responding or asking about it now, when they need it, they will look for you. 

And when you have potential recruits or buyers, you should follow up with them consistently. Keep the conversion going on and try to close them. 

Where To Prospect For Network Marketing

There are so many places both online and offline where you can prospect for network marketing. After you have identified who is your dream customer, now it’s time to reach out to them. 

First of all, social media platforms like Facebook, LinkedIn, and Instagram can be great places to connect with potential recruits and customers. You can use these platforms to share information about your products or services and engage with your audience.

Then, you may attend local networking events, such as chamber of commerce meetings or industry events. It can be a good way to connect with potential recruits.

Next, you may try searching for your friends, family, and colleagues. They can be a good source of potential recruits. Let your network know about your business and the opportunity you are offering.

Online groups are a good place that congregates your prospects. The group owner had grouped all your potential customers in the same group. It’s time to join and provide values to connect with them. 

It’s important to remember that prospecting is just one part of building a successful network marketing business. It’s also important to focus on building relationships, providing excellent customer service, and continuously learning and adapting to stay ahead in the industry.

How To Write A Network Marketing Recruiting Script

Recruiting scripts are pre-written scripts that can be used to help recruit new members to a network marketing business. These scripts can be useful for helping you stay organized and focused when talking to potential recruits, but it’s important to keep in mind that they are not a one-size-fits-all solution. Here are a few tips for using recruiting scripts effectively:

• Tailor the script to the individual: A script can provide a useful outline for your conversation. However, it’s important to tailor it to the individual you are speaking with. This means taking the time to get to know the person and understanding their interests and goals.
• Practice the script: Practice your script beforehand to ensure that it flows naturally and sounds authentic.
• Be open to deviations: It’s important to be open to deviations from the script and be willing to have a natural conversation with the person you are speaking with.
• Use the script as a guide: Use the script as a guide, but be prepared to adapt and adjust your approach as needed.
• Be genuine: Above all, it’s important to be genuine and authentic when recruiting new members. People are more likely to join your network if they feel that you are genuine and sincere.

Remember, recruiting new members is just one part of building a successful network marketing business. It’s also important to focus on building relationships, providing excellent customer service, and continuously learning and adapting to stay ahead in the industry.

Lead Generation For Network Marketers

Lead generation is the process of attracting and converting strangers and prospects into someone who has indicated an interest in your company’s product or service.

In the context of network marketing, this typically involves using a variety of tactics, such as email marketing, social media marketing, content marketing, and events, to attract potential customers and persuade them to join your network marketing team.

Read more about online lead generation for network marketers

Landing Page for Network Marketers

A landing page is a standalone web page that is designed to persuade a visitor to take a specific action, such as making a purchase or signing up for a service.

In the context of a network marketing business, a landing page can be used to capture the interest of potential customers and team members. And then, persuade them to take the next step in the sales or recruitment process.

To create an effective landing page for a network marketing business, follow these steps:

• Choose a compelling and relevant headline that clearly communicates the value of your product or opportunity and grabs the visitor’s attention.
• Use images and videos to illustrate the benefits of your product or opportunity and engage the visitor’s emotions.
• Include a clear and concise call-to-action (CTA) that tells the visitor what you want them to do, such as “Sign up now” or “Learn more”
• Provide social proof, such as customer testimonials or case studies, to build trust and credibility with the visitor.
• Use a simple and intuitive design that is easy to navigate and encourages the visitor to take the desired action.
• Run A/B testing to experiment with different versions of your landing page and identify the version that performs best.

Overall, a well-designed landing page is an effective tool for a network marketing business. It can help to attract and convert potential customers and team members.

Sales Funnel for Network Marketers

A sales funnel is a marketing model that describes the journey a customer takes from being aware of a product or service, to actively considering it, to making a purchase.

In the context of network marketing, a sales funnel can be a useful way to visualize and manage the process of attracting and converting prospects into customers and team members.

A typical sales funnel for a network marketing business might include the following steps:

• Awareness: This is the first step in the funnel. The potential customers become aware of your product or service. This can be achieved through a variety of marketing tactics, such as social media marketing, content marketing, and advertising.
• Interest: In this step, potential customers become interested in your product or service and start to research it further. This is achieved by providing valuable and informative content, such as blog posts, videos, and webinars. And, help educate prospects about the benefits of your product or service.
• Decision: At this stage, potential customers are actively considering making a purchase. This is where you need to provide them with the information. The justification support they need to make an informed decision, such as product demos, testimonials, and customer support.
• Action: In this final step, the potential customer makes a purchase and becomes a customer or team member. This can be achieved through effective sales techniques. This includes closing the sale and following up with the customer to ensure they are satisfied with their purchase.

Read more about sales funnel for network marketers

What Type of Sales Funnel Should Network Marketers Use

The type of funnel that a network marketer should use depends on their business goals and their audience group. However, there are a few types of funnels that are commonly used in the context of network marketing.

Lead generation funnel

This type of funnel is designed to attract potential customers and capture their contact information, usually their email addresses. This information is used for the purpose of nurturing their interest and converting them into customers or team members. A lead generation funnel typically includes three elements. A landing page with a contact form, an email follow-up sequence, and a thank-you page.

Product Sales funnel

This type of funnel is designed to persuade potential customers to make a purchase. A sales funnel typically includes a series of pages that provide information about the product. Then, you demonstrate its value and make a persuasive offer. So, this sales funnel might include a landing page, a product page, a checkout page, upsell pages and a thank-you page.

Recruitment funnel

This type of funnel is designed to persuade potential team members to join your network marketing business. A recruitment funnel typically includes a landing page that provides information about the opportunity. It can be a video or webinar that presents the business model and the benefits of joining it. In the end, there will be a signup form that allows potential team members to sign up and learn more.

Overall, the type of funnel that a network marketer should use depends on their business goals and the needs of their target audience.

It may be helpful to experiment with different types of funnels and see which one performs best for your business.

How to use Sales Funnel for Network Marketing Business

A network marketing funnel is a series of steps that a network marketing business uses to attract, engage, and convert potential customers and team members. To use a network marketing funnel effectively, follow these steps:

Identify your target audience

Before you can create a network marketing funnel, you need to understand who your ideal customers are. You need to know who they are and where they are. This might include factors such as age, gender, interests, and location.

Create a lead magnet

A lead magnet is a valuable piece of content, such as an e-book, a video, or a webinar. The lead magnet is offered to potential customers in exchange for their contact information. Use your lead magnet to capture the interest of potential customers and team members and persuade them to take the next step in the funnel.

Use a landing page and a form

A landing page is a standalone web page that is designed to persuade a visitor to take a specific action. This includes making a purchase or signing up for a service. Use a landing page to provide information about your product or opportunity and a form to capture the visitor’s contact information.

Use email marketing

Once you have captured a prospect’s contact information, use email marketing to nurture their interest and persuade them to take the next step in the funnel. This might include providing more information about your product or opportunity, offering special discounts or promotions, or inviting them

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Lead Magnet for Network Marketing Business

A lead magnet is a valuable piece of content, such as an e-book, a video, or a webinar, that is offered to potential customers in exchange for their contact information.

A lead magnet can be a powerful tool for attracting and capturing the interest of potential customers and team members.

To create a successful lead magnet for a network marketing business, follow these steps:

First, you should identify a specific problem or need that your target audience has. Then, you can create a lead magnet that addresses this problem or need in a valuable and compelling way.

For example, if your target audience is interested in improving their health, you could create a lead magnet that provides a step-by-step guide to healthy eating.

Then, create a catchy and informative title for your lead magnet that clearly communicates the value it will provide.

Next, design a high-quality and professional-looking lead magnet that is easy to consume and engages the reader or viewer.

Next, use social media and other digital marketing channels to promote your lead magnet and encourage potential customers and team members to download it.

Finally, once a prospect downloads your lead magnet, follow up with them via email or other means to nurture their interest and persuade them to take the next step, such as making a purchase or joining your team.

Overall, a well-designed and well-promoted lead magnet can be a valuable asset for a network marketing business, helping to attract and convert prospects into customers and team members.

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How Network Marketing Can Use ClickFunels To Build A Successful Business

ClickFunnels is a popular sales funnel software that helps businesses create and manage marketing and sales funnels. In the context of network marketing, ClickFunnels can be used to create and automate the process of attracting and converting prospects into customers and team members.

To use ClickFunnels for network marketing, follow these steps:

• Sign up for a ClickFunnels account and choose a plan that suits your business needs.
• Create a new funnel. Choose the right type of funnel that is best suited to your business goals. It can be a lead generation funnel or a sales funnel.
• Use the ClickFunnels editor to design and customize the pages of your funnel. This includes the landing page, the sales page, and the thank-you page.
• Add elements to your pages, such as images, videos, forms, and buttons, to engage and persuade potential customers to take the desired action. For network marketing, it means making a purchase or joining your team.
• Use the ClickFunnels integration with your email marketing service to send automated follow-up emails to prospects and customers.
• Use the ClickFunnels analytics and tracking tools. This is to monitor the performance of your funnel and make adjustments as needed to improve its effectiveness.

Overall, ClickFunnels can be a powerful tool for network marketers looking to automate and optimize their sales and marketing processes.

Try ClickFunnels For Free for 14 days

Creating a Network Marketing Online Course

A successful network marketing-related online course is how you can recruit your downline easier. You can teach all your secrets inside and send them to learn and follow your steps. Not only that, but you can also sell the course to other network marketers that are interested to learn.

Like every product creation, an online course creation starts with identifying your target audience. Your course should be built around your dream customer’s requirements. What they are looking for and what problem they want to solve.

This includes factors such as their age, gender, interests, and level of experience with network marketing. The more details you have, the better your course will address their problems.

Then, choose a compelling topic. To create a successful course, you need to choose a topic that is both relevant and interesting to your target audience.

Consider their needs and challenges, and select a topic that addresses a specific problem or needs that they have.

Next, create a detailed course outline.

Before you start creating your course, create a detailed outline that covers all of the key topics and concepts you want to include. This will help you organize your thoughts and ensure that your course is comprehensive and well-structured.

Then, create engaging and informative content.

To create a successful course, you need to create content that is engaging, informative, and easy to understand. Use a variety of formats, such as videos, text, images, and quizzes, to keep your students engaged and help them retain the information you are teaching.

Finally, use a learning management system (LMS) to host your course.

To deliver your course online, use a learning management system (LMS) to host and manage your course content and student interactions. An LMS will allow you to organize your course materials, track student progress, and provide support and feedback to your students.

Overall, creating a successful network marketing-related online course requires a combination of careful planning, engaging content, and effective delivery.

By following these steps, you can create a course that is valuable to your students and helps them achieve their goals.

Final thought – Building A Successful Network Marketing Business

A network marketing business is a good business for anyone that wants to start building with a small startup cost. But, it takes time and effort as well to build a successful one. 

With the increase in digital marketing, network marketers use a variety of tactics to generate leads online. This includes creating a lead magnet. By using a landing page and a form, using social media and other digital marketing channels, and providing excellent customer service.

By using these tactics, network marketers can build their email lists and nurture potential leads into customers and team members.

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Network Marketing Secrets To Success Revealed

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Sample MLM Business Plan: How to Create Your Own

Today, I want to teach you how to create your own MLM Business Plan .

Most network marketers do not have a written business plan for their business. I think that’s a huge mistake. Ask any 100 network marketers to show you their written MLM Business Plan and at least 99 of them will look at you like a deer staring in the headlights. I want you to be the 1 in 100 who has a business plan!

I’m not sure why people don’t create their own business plan. Maybe it’s because they haven’t been taught how to write a business plan before. Or, maybe they don’t understand how important business plans are.

Truth be told, all businesses need a written business plan. I’ve never met a successful business owner in any industry that did not have a written business plan. Sure, there might be a few successful business owners out there without a business plan, but they are few and far between.

I learned in the Army that failing to plan is planning to fail.

Whenever you want to accomplish ANYTHING of importance you need a game-plan. Even if you must deviate from your plan at some point in the future, the most important part of having a plan is the THINKING and PLANNING you put into it when you created it.

Business plans are no different. Your business plan is your road-map to success . It will help keep you focused and on point. It will show you where you want to go and how you will get there.

A business plan does not have to be long or overly complicated, nor should it be. In fact, something short and sweet is much better than having a twenty or thirty page business plan that sits on the shelf and collects dust.

I like to keep my business plan to one or two pages at most, because it keeps things simple and easy to understand. One page is ideal .  

How to Create Your Own MLM Business Plan

My goal today is to help you create your own MLM Business Plan. I will go through the step-by-step process I use to create my own MLM Business Plan. I encourage you to follow these steps in order and to use this as a template to create your own custom business plan. After we go through these steps, I will share my actual MLM Business Plan.

Step # 1: Identify Your Mission Statement

The first step is to identify your mission statement. What are you all about? What is your business all about? Why are you doing what you are doing? The stronger the mission statement, and the more passionate you are about it, the higher the likelihood you will succeed with your business.

A mission statement serves as the heartbeat of a company, encapsulating its core purpose, values, and aspirations. It’s a concise yet powerful declaration that defines the fundamental reason for an organization’s existence and outlines its long-term objectives. This statement goes beyond mere profit-making goals, aiming to articulate the broader impact and contribution the company seeks to make in the world. A well-crafted mission statement inspires and guides employees, stakeholders, and customers, fostering a shared sense of purpose and direction. It’s a compass that steers decision-making and shapes the company’s identity, culture, and strategic initiatives, ultimately serving as a beacon guiding the organization towards its envisioned future.

Step # 2: Identify Your Vision Statement

Where do you see your business in three, five, even 10 years from now? What are you ultimately trying to accomplish with the business and why? If you achieved your goals in the business today, what would you do with your extra time and money? The answers to these questions will define your vision statement.

A company’s vision statement is a vivid and aspirational description of where the organization aims to be in the future. It paints a compelling picture of the desired long-term outcomes and goals, serving as a guiding light for strategic planning and decision-making. Unlike the mission statement, which focuses on the present purpose and core values, the vision statement projects a forward-looking perspective, detailing the company’s ultimate ambitions, dreams, and the impact it seeks to have on the world. It is an inspiring declaration that motivates stakeholders, employees, and customers alike, aligning their efforts toward a common and ambitious goal, fostering innovation, and shaping the company’s direction toward realizing its envisioned future.

Step # 3: Identify Your Target Market & Overall Business Strategy

Your next step is to identify your target market and overall business strategy. Your target market is the group of people you want to focus on. It’s your “ideal” customer. It’s the person most likely to do business with you.

As an example, the target market for McDonald’s is people who want their food fast and cheap. The target market for Ruth’s Chris Steak House is people who want high quality and great service. Both companies are successful and both companies have different target markets. McDonald’s does not try to attract Ruth’s Chris Steak House customers and Ruth’s Chris doesn’t try to attract McDonald’s customers. Make sense?

Who do you want to focus on? A few example target markets include:

• Stay at home moms
• Military veterans
• Current and former network marketers
• Baby Boomers
• Small Business Owners

There is not a right or wrong target market. However, it’s best to focus on a market YOU BELONG TO, so you have something in common with them. For instance, I focus on network marketers, small business owners, and military veterans mostly, because those are my target markets and I have something in common with those three groups of people.

Once you pick a target market, the next step is to identify your overall business strategy. In other words, what will you do “on a big scale” to find these people. Where will you find them? How will you find them? What will you say or do to them to entice them to work with you?

You might buy mailing lists and mail postcards. You might make YouTube videos. You could start your own Facebook group for these folks. These are a few of your options. There is no right or wrong answer.

Step # 4: Develop Your Own Unique Selling Proposition (USP)

Your USP is a short one or two sentence statement that clearly identifies what makes you different from the competition and why people should do business with you, and not someone else. Here is an example USP.

What makes me different from my competition is that I educate other network marketers about the industry. I don’t use hype or pressure. I am always honest and to the point. My primary goal is to educate network marketers about how to be successful in the industry, to be an ambassador to the industry and to give our industry a good reputation. Building my team is a byproduct of me doing that.

You must know your USP, so you know WHY people should do business with you and not someone else. In other words, what do you bring to the table? Why should a prospect join you and not someone else promoting the same company?

Step # 4: Your Action Plan

Other than your why and goals, this is the most important part of your MLM Business Plan. It’s where the rubber meets the road. Your action plan will identify what you must do each month, each week and each day to grow your MLM Business. Here is an example action plan.

Step # 5: Identify Your Business Goals

In this next step, I want you to set clear business goals for the next 12 months. Your goals should be specific and focus on things you can control. Here are some good questions to ask your self:

• How many people do I want to sponsor this year?
• What rank do I want to achieve?
• How many active reps will I need on my team to hit those goals?
• How many YouTube videos will I publish?
• How many postcards will I mail?
• How many people will I invite to watch my business presentation?

This is just a short list to get you thinking. It’s best to identify three to five goals. Put your most important goal as your # 1 goal, your second most important goal as # 2, and so forth.

You should also write down your five year goals for your business. The 5-year goals you come up with will be part of your vision statement.

Step # 6: Determine Your Daily Routine

This is where the magic happens in your business. Your daily routine is simply a list of key tasks you will do each day to achieve your goals and grow your business . These tasks must be income producing activities and ideally they will correspond to your overall business strategy.

Here are some examples to get you thinking:

• Mail 10 postcards
• Private message 10 prospects on Facebook
• Call 5 leads
• Publish 1 YouTube video
• Publish 1 article on LinkedIn
• Hand out 10 drop cards

Your tasks must be specific and quantifiable.

What I like to do is look at my one year goals and divide it by 365. That lets me know what I need to do each day to grow my business.

The number of activities  you do each day is dictated by the amount of time you set aside for your business daily, and your business goals.

Chuck’s 2024 MLM Business Plan

What you will see below is my actual business plan. Feel free to use this as a template in your own business.

Date: As of December 7, 2023

To help people succeed in network marketing.

By December 2028, I will have a team of 75,000 affiliates/members, be a Crown Diamond, and earn $750k per year between LiveGood, my MLM blog, and YouTube channel.

My Target Market & Overall Business Strategy

My target market is current and former network marketers . I will leverage content marketing, attraction marketing , and paid advertising to educate people about the network marketing industry. I will drive these people to my email list, and I will recruit people who approach me about LiveGood.

Unique Selling Proposition

People want to work with me because I am a No B.S. Network Marketing Professional. I am highly skilled, honest, and my focus is serving and helping others.

This Year’s Business Goals (2024)

• Add 12,000 new people to my MLM email list and 2,400 to my LiveGood email list.
• Publish 800 new pieces of content online (365 new YouTube videos, 365 new podcasts, and 52 new blog posts).
• Personally recruit 120 new affiliates (20 in my account, 100 in Rachel’s).
• Reach the rank of DIAMOND rank and have a team of 4,000 active members and affiliates.
• Achieve $20k monthly income between my blog and LiveGood by DEC 31, 2024.

My Daily Mode of Operations (Monday through Saturday)

I will work my business Monday through Saturday and take Sundays off to relax and spend time with my wife.

Big Daily Goal : Generate 30+ leads daily.

Daily Time Commitment : 3-4 hours

Daily Activities :

• Publish 1 video.
• Publish 1 podcast.
• Publish new blog post (1x per week)
• Mail 10 postcards.
• Post Facebook story, timeline, and reel daily.
• Buy 1 paid ad per day ($2k monthly budget)
• Email my list daily.
• Work with key team members daily.

**** End of business plan. Once again, these are just my goals and plan. Do not compare yourself to me. Instead, come up with something that works for you. 

Suggested Training

Putting It All Together

In review, your MLM Business Plan is an important document. It will guide you to where you want to go with your business. Keep in mind it is a living, breathing document and it will change from time-to-time. Refer to it often, make sure you stay on track, and update it when needed.

What are your thoughts? What do you think about having a MLM Business Plan? Leave a comment below to share your thoughts. I look forward to hearing from you. Here’s to your success in the business.

Recommended Reading

• How to Get Organized in Your MLM Business
• My System for Building My MLM Business
• How to Build Your MLM Business Online
• 34 Ways to Get MLM Leads
• Best 50 MLM Companies

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10 thoughts on “Sample MLM Business Plan: How to Create Your Own”

What you posted here should be common sense, but so many people neglect to make a business plan. You provided a simple way to do it. I like how you explained that it needs to be short and too the point. By doing that, you will be willing to read it often. If you make a long and hard-to-read business plan, the odds of you following it are low.

Having your goals broke down is important. By knowing what you need to do daily, you will have the inspiration to do it.

Every business owner needs a business plan. Failing to plan is planning to fail.

I am currently taking a business and management course and we recently highlighted the importance of planning. Planning is the foundation upon which everything else will grow. If you have no plan or a weak plan, you can expect the rest of the process to be pretty rocky. Plans help you to clarify your goals and create a step-by-step guide that you can later reference for how you will achieve them.

I agree. Having a written business plan is vital for any business. It’s not the plan itself that is all the that important. What really matters is that you “thought through” your business and brainstormed different courses of action and different alternatives.

You said a mouthful in this response to a comment. So many people try to manage their business without any kind of plan. They fly haphazardly and wonder why they have so many difficulties. When you just sit down to develop a plan, you are considering the what ifs and what fors that some people do not look at. The creation of a business plan helps you to see the bigger picture.

You are providing a great service here Chuck. If planning is not your Forte, I strongly recommend that you visit his services page, and Chuck can create the plan for you at a reasonable cost.

Without a written plan, people will fail.

I think that a plan/strategy is essential to any endeavor that has the potential for failure, i.e. everything! If there is possibility of failure, you should do everything you can to preempt it. Sports, military, business, academics, relationships…all of these things have the potential to fail, which is why all of them require some kind of strategy, tactics, or plan to keep your aspirations from disappearing before your eyes. What do you hope to accomplish? What numbers do you hope to attain? How are you going to strive for these goals? Who is going to help you? What will you do when confronted with obstacles? A quality business plan will help you answer all these questions.

As I learned in the Army, failing to plan is planning to fail. All businesses need some type of plan.

Your point-by-point tasks list is very helpful and easily accomplished by even the most novice marketer. Many network marketers rely on the marketing plans provided by bigger MLM companies and fail to branch out and set their own business goals. Investing time and funds into long term goals is never wasted.

All business owners need a business plan.

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How to Start MLM Business? A Complete Business Plan of Multi-Level Marketing (MLM)

Jul 20, 2021.

Multi-level marketing (MLM) is a method of selling where companies sell or distribute their products through non-salaried employees. MLM also known as direct selling, network selling and pyramid selling, and the adoption of the MLM business plan significantly rose in different domains. 

Every MLM company applies different rules to their business to reach their target audience. But the goal behind every MLM company is the same, which is building a larger group audience to establish business relationships with them and making a profit. 

Some of the widely celebrated MLM companies in India with a steady number of sales include Amway, Avon, Forever Living, and so many others to name. These companies have taken the Indian market by storm and boosted direct sales and provided thousands or lakhs of employment opportunities. 

Let’s read this post to learn more about multi-level marketing including what MLM is, different types of MLM plans, pros and cons of MLM business, what is the need for MLM software to start a business, the cost of MLM software development in India and so on. 

Table of Contents

What is Multi-Level Marketing (MLM)?

MLM is an effective form of marketing which is also pronounced as network or chain marketing is used by companies to sell their products to customers. Rather than directly selling their products to the customers through online websites or traditional brick and mortar stores, these companies appoint sales executives to sell their products. 

These sales executives usually work from home and buy inventory from the manufacturing companies to sell it in their circle. They are not considered salaried employees instead they are independent business owners who receive money when they make sales.

The multi-level meant to refer to the ability of the sales executive to hire and train other sales executives to help them start their own business. As recruits make sales and hire other representatives, each person above them receives a certain commission. 

Pros & Cons of MLM Business

Just like other businesses, MLM business also has its own advantages and disadvantages. This business model has been the subject of criticism for many years and yet appreciated by many. So let’s scroll down to explore the pros and cons of starting an MLM business. 

What are the Pros of Multi-Level Marketing(MLM)?

The following are some of the most evident benefits of the Multi-level marketing (MLM) business. 

1. Easy Way of Starting a Business

MLM business allows individuals to work on a different business model with complete freedom and ease their way of starting their own business with very less or no investment. You can become a distributor and start earning, or you can let others join with you to expand your network.  For example, if you are from Wyoming, then you might be aware of the way to forming an LLC in Wyoming ,which is quite easy and affordable to start your business.

2. Freedom to Work From Home

To become an MLM distributor, all you need is a computer with a steady internet connection. You can check your progress online, reach potential customers over call and convenience them to purchase your product. The freedom to work from home is the biggest advantage of the MLM business model.

3. Passive Income Growth

In the MLM business, you can earn as much as your efforts and work effectiveness worth. The income keeps adding further as you recruit new distributors or sell products online. 

4. Opportunity to Collaborate with Established Business

Sales executives can collaborate with the established business that gained acceptance by developing excellent products, solid labels, and industry-leading marketing techniques. By working with an established business, your chances of seeing success will significantly increase. 

5. Flexibility

MLM business model provides you with the opportunity to work at your convenience. It completely depends on you how much time you want to devote to the business, time could be as less as 20 minutes or could be as maximum as 20 hours. 

What are the Cons of Multi-Level Marketing (MLM)?

Multi-level marketing also has several disadvantages, below we will try to address a few of them. 

1. Fear of Being Exposed to Scams

There are hundreds or thousands of multi-level marketing companies available in the market and a huge number of them are associated with any kind of fraudulent activities. People are afraid of being exposed to such fraudulent companies, hence they prefer to stay away from MLM business. 

2. Slow Growth Rate

It takes time for MLM companies to see success in the market. It is a time-consuming process as you need to spend a lot of time making presentations and inspiring people to invest in your product. 

3. Low Income 

There is a myth associated with the MLM business that it is a scheme to become rich overnight. However, in reality, MLM businesses require a lot of patience and effort to feel the taste of success. 

Why is MLM Software Essential to Start a Business?

The need for MLM software to start a business is inevitable as it helps the MLM business to automate the process to achieve success. Bitcoin MLM software helps to achieve success by providing advantages such as accurate processing, faster transaction speed, customer efficiency and customer satisfaction. 

The first and biggest advantage of MLM software is that it can be incorporated with any organization involved in a multi-level marketing business. It is packed with the features that need to push start a business. Furthermore, the MLM software can be accessed from anywhere in the world. 

The MLM software is built to serve MLM companies to effectively manage their team of sales executives, down lines, commission policies, inventory and purchase decisions. These are the mainstream of any MLM business and having effective management of these things will lead you to success. 

>>>Read More: What Is A Bitcoin ATM? How To Use A Bitcoin ATM – A Complete Guide Here <<<

Nowadays, when people’s dependence on the internet extends to an unimaginable level. This time the need of having an MLM software reports growth in the demand. With the ease of MLM software, an MLM business can manage the estimation of demand and supply amidst the market.

These are just a few mainstreams of MLM software. You can build personalized MLM software with the aid of an MLM software development company like BR Softech to get exposure to several other benefits of MLM software. 

What is the Cost of MLM Software in India?

Just like other software, MLM software development is also accomplished in multiple stages. These stages play an essential role in determining the cost of developing MLM software. The key stages of MLM software development are as follows. 

Design is the crucial stage in MLM software development. The development company develops the different versions of the UI intending to serve the clients with the functional and graphical expectations of the software. Out of these two, only one UI design is selected for MLM software. Therefore, it is the first stage where you need to plan MLM software development cost estimation effectively to avoid overspending. 

On average, the design stage of the MLM software contributes a 20% share in the total software development cost. 

>>>ReadMore: Top 10 Bitcoin Mining Software 2021 – BR Softech <<<

2. Development

A major part of the MLM software budget goes into development. On average, 50% of the development estimation ends up spent on the MLM software development stage as it demands a lot of time and effort. This development cost becomes higher when MLM software development needs to develop with the MLM compensation plans, third-party tools and payment gateway script. 

This is the stage that is devoted to quality assurance. At this stage, a team of MLM software developers thoroughly tests the MLM software to find out the potential bugs and take the necessary steps to resolve those bugs. Depending on the complexity of MLM software development, the cost of testing might vary. 

>>>Read More: How Much Does Android App Development Cost? | BR Softech <<<

The basic job of MLM software is to connect the sales companies with their freelance sales executives. A well-built MLM software will work best most of the time but think about the worst time when your software stopped working due to any reason such as technical glitch, server issue or any other reason.

At such times, having the aid of effective technical support will go a long way to provide the required support to get the software back to its normal working state. The support system will also add up in the MLM software development cost. 

The average cost of developing an MLM software in India would be somewhere around INR 65,000 to INR 1,20,000 or above. Hire a dedicated software developer to get hands-on knowledge of the actual cost of MLM software development. 

Multi-Level Marketing Plans to Watch Out in 2021

In multi-level marketing, there are several network marketing plans available to choose from, hence choosing a suitable and highly beneficial MLM plan is a tricky deal. That’s the reason why we brought a list of the top 10 multi-level marketing plans to watch out for in 2021 . 

With BR Softech, the MLM software development company, you can align your MLM software with intelligently tuned features to overcome all challenges and lead your business to success. 

I am the admin of BR Softech PVT LTD - an Award-winning Mobile game development company. My thesis is to work with hard-bit and get the best Exposure. I have driven by the spirit of entrepreneurship and dream to build a billion-dollar-company.

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Demo MLM Matrix Compensation Plan

Welcome to our in-depth MLM matrix plan demo, where we dive into the world of network marketing and explore the benefits of this powerful business strategy. Whether you’re new to MLM or looking to enhance your existing business, this post will provide valuable insights and practical examples to help you succeed.

Are you ready to unlock the potential of multi-level marketing (MLM) and take your business to new heights? Look no further! In this exciting live demo, we will showcase the incredible power and effectiveness of the MLM Matrix Plan in action.

With its unique structure and dynamic compensation system, the Matrix Plan has revolutionized the way businesses grow and thrive in the MLM industry. Join us as we delve into the intricacies of this game-changing plan, exploring its benefits, strategies, and success stories.

Whether you’re a seasoned MLM professional or just starting out, this live demo is a must-attend event that will equip you with the knowledge and tools to maximize your earning potential. Don’t miss out on this opportunity to witness firsthand how the MLM Matrix Plan can transform your business and help you achieve financial freedom. Get ready to unlock your potential and take your dreams to the next level!

Table of Contents

What is mlm matrix plan.

The MLM Matrix Plan , also known as the Forced Matrix Plan , is a compensation structure that organizes distributors into a fixed width and depth matrix. This means that each distributor can only have a limited number of frontline members and each member can only have a limited number of downline members. The most common matrix sizes are 3×3, 4×4, and 5×5, where the number before “x” represents the width and the number after “x” represents the depth of the matrix.

This unique structure ensures that each distributor has a well-defined hierarchy and a limited number of positions to fill. It promotes teamwork and encourages distributors to support each other in building their downlines. The MLM Matrix Plan is particularly suitable for businesses that want to create a strong sense of community and foster collaboration among their distributors.

The Matrix Plan also offers various compensation options, such as level commissions, matching bonuses, and spillover commissions. These incentives motivate distributors to not only recruit new members but also help their downlines succeed. The MLM Matrix Plan is a win-win situation for both the company and its distributors, as it promotes growth, teamwork, and financial success.

Understanding the structure of MLM Matrix Plan

To fully understand the MLM Matrix Plan, let’s dive into its structure. Imagine a 3×3 matrix, which means each distributor can have a maximum of 3 frontline members and each of these members can have a maximum of 3 downline members. This creates a hierarchical structure where each distributor is positioned in a specific level and position within the matrix.

At the top of the matrix, we have the sponsor or the distributor who initially recruits new members. This sponsor is positioned in the first level and can have up to 3 frontline members directly under them. Each of these frontline members is positioned in the second level and can also have up to 3 downline members under them. This process continues until the matrix is filled.

As the matrix grows, it becomes a powerful network of interconnected distributors. This structure encourages teamwork and collaboration, as each distributor’s success is dependent on the success of their downline members. It also provides opportunities for members to earn commissions and bonuses as they move up the matrix and support their team.

Benefits of MLM Matrix Plan

The MLM Matrix Plan offers a range of benefits for both businesses and distributors. One of the key advantages of an MLM matrix plan is its potential for exponential growth. By leveraging the power of network marketing, this plan allows you to expand your business rapidly. The “ MLM matrix plan demo ” demonstrates how this strategy can be applied effectively to achieve success.

Let’s explore some of these benefits:

1. Teamwork and Collaboration : The matrix structure promotes teamwork and collaboration among distributors. Instead of competing against each other, distributors work together to support their downlines and help them succeed. This creates a strong sense of community and fosters a supportive environment.

2. Spillover Commissions : In a matrix plan, distributors can benefit from spillover commissions. Spillover occurs when a distributor recruits more members than their frontline positions can accommodate. These extra recruits are placed under their downline members, allowing them to earn commissions from the sales generated by these spillover members.

3. Incentives for Growth : The MLM Matrix Plan provides various incentives for growth, such as level commissions and matching bonuses. Distributors are motivated to not only recruit new members but also help their downlines succeed. This creates a culture of mentorship and support, leading to overall growth and success for the business.

4. Limited Frontline Positions : The matrix structure ensures that each distributor has a limited number of frontline positions. This encourages distributors to focus on supporting their existing downline members rather than solely recruiting new members. It promotes stability and ensures that everyone in the matrix receives the necessary attention and support.

5. Duplication and Replication : The MLM Matrix Plan is designed to be easily replicated and duplicated. Once a distributor understands the system and achieves success, they can teach their downline members to do the same. This duplication process leads to exponential growth and allows the business to expand rapidly.

How to set up an MLM Matrix Plan for your business

Setting up an MLM Matrix Plan for your business requires careful planning and consideration. Here are the key steps to follow:

• Define your matrix dimensions : Determine the width and depth of your matrix. Consider your business goals, the number of distributors you plan to have, and the compensation structure you want to implement. Common matrix sizes are 3×3, 4×4, and 5×5, but you can choose a different size based on your specific requirements.
• Choose a compensation plan : Decide on the compensation options you want to offer, such as level commissions, matching bonuses, and spillover commissions. Ensure that your compensation plan aligns with your business objectives and motivates distributors to achieve success.
• Select MLM Matrix Plan software : Invest in reliable MLM Matrix Plan software that can handle the complexity of your matrix structure and compensation plan. Look for features like member management, commission tracking, and reporting capabilities. The right software will streamline your operations and provide a seamless experience for your distributors.
• Provide training and support : Implement a comprehensive training program to educate your distributors about the MLM Matrix Plan and how to succeed within the structure. Offer ongoing support and mentorship to help them navigate challenges and achieve their goals. A well-trained and supported team is essential for the success of your MLM Matrix Plan.
• Promote your plan : Develop a marketing strategy to promote your MLM Matrix Plan and attract potential distributors. Highlight the benefits, incentives, and success stories associated with your plan. Utilize social media, email marketing, and other digital channels to reach your target audience and generate interest in your business opportunity.

By following these steps, you can set up an MLM Matrix Plan that is tailored to your business and maximizes your chances of success.

Key features and components

MLM Matrix Plan software plays a crucial role in managing and automating your MLM business. Here are some key features and components to look for in MLM Matrix Plan software :

• Matrix configuration: The software should allow you to easily configure the dimensions of your matrix, such as the width and depth. It should support various matrix sizes and provide flexibility to adapt to your changing business needs.
• Member management: The software should have robust member management capabilities, allowing you to easily add, remove, and track the activities of your distributors. It should provide a clear view of the matrix structure and allow you to monitor the performance of each member.
• Commission tracking: The software should accurately track commissions and bonuses earned by your distributors. It should handle complex calculations based on your compensation plan and provide detailed reports for transparency.
• Payment integration: The software should seamlessly integrate with payment gateways to facilitate secure and timely commission payouts. It should support multiple payment methods to cater to the preferences of your distributors.
• Replication tools: Look for software that offers replication tools, enabling your distributors to easily duplicate your success. These tools should allow distributors to create personalized websites, track their progress, and access training materials.
• Support and training: Ensure that the software provider offers reliable support and training resources to assist you in using the software effectively. This will help you and your distributors make the most of the MLM Matrix Plan software.

By selecting MLM Matrix Plan software with these features, you can streamline your operations, enhance your distributors’ experience, and drive the success of your MLM business.

Tips for Maximizing the Potential 

To maximize the potential of your MLM Matrix Plan, consider the following tips:

• Provide ongoing training: Continuous training is vital for the success of your distributors. Offer regular training sessions, webinars, and workshops to educate them about the MLM Matrix Plan and equip them with the skills they need to excel.
• Communicate regularly: Maintain open lines of communication with your distributors. Provide updates, share success stories, and address any concerns or challenges they may have. Regular communication fosters trust and keeps your distributors engaged and motivated.
• Recognize achievements: Celebrate the achievements and milestones of your distributors. Recognize their hard work, dedication, and success through incentives, rewards, and public recognition. This boosts morale and motivates others to strive for success.
• Encourage teamwork: Foster a culture of teamwork and collaboration among your distributors. Encourage them to support each other, share best practices, and collaborate on projects. This creates a strong sense of community, enhances productivity, and drives overall growth.
• Leverage technology: Embrace technology to automate and simplify your MLM Matrix Plan. Utilize social media, email marketing, and other digital tools to reach a wider audience, generate leads, and promote your business opportunity. Invest in software that streamlines your operations and provides a seamless experience for your distributors.

By implementing these tips, you can unlock the full potential of your MLM Matrix Plan and drive the success of your MLM business.

The importance of training and support

Training and support are essential for the success of your MLM Matrix Plan. Here’s why they are crucial:

• Knowledge transfer: Training ensures that your distributors understand the MLM Matrix Plan, its benefits, and the strategies for success. It equips them with the necessary skills and knowledge to effectively build their downlines and achieve financial freedom.
• Confidence and motivation: Training boosts the confidence of your distributors, empowering them to take action and overcome challenges. It also motivates them to stay committed and work towards their goals, even during tough times.
• Consistent performance: Training ensures that your distributors consistently perform at their best. It provides them with the techniques, tools, and resources they need to enhance their sales, recruit new members, and support their downlines.
• Retention and engagement: When you provide training and support, you demonstrate that you value and invest in your distributors’ success. This increases their loyalty, engagement, and commitment to your MLM Matrix Plan. It also reduces attrition rates and ensures the long-term sustainability of your business.
• Continuous improvement: Training helps you identify areas for improvement and refine your MLM Matrix Plan. Through feedback and evaluation, you can identify best practices, adapt to changing market dynamics, and enhance the effectiveness of your plan.

Training and support should be ongoing and tailored to the specific needs of your distributors. Provide a mix of online training resources, live webinars, one-on-one coaching, and mentorship programs to cater to different learning styles and preferences.

Common challenges and how to overcome them

While the MLM Matrix Plan offers numerous advantages, it also presents some common challenges. Here are a few challenges you may encounter and strategies to overcome them:

• Limited matrix size: The limited width and depth of the matrix can pose challenges when acquiring new members. To overcome this, focus on quality over quantity. Encourage your distributors to identify and recruit motivated individuals who are committed to their own success and the success of the team.
• Lack of duplication: Duplication is key to the success of an MLM Matrix Plan. However, some distributors may struggle to duplicate your success. To address this, provide comprehensive training materials and resources that guide them step-by-step through the process. Encourage mentorship and collaboration among distributors to promote duplication.
• Retention of distributors: Retaining distributors can be a challenge in any MLM business. To overcome this, focus on building strong relationships with your distributors. Provide ongoing support, recognize their achievements, and create a positive and inclusive culture within your organization. Regular communication, incentives, and rewards can also help increase retention rates.
• Market saturation: As MLM businesses grow, market saturation becomes a concern. To combat this, differentiate your products or services by offering unique features or benefits. Emphasize the value proposition of your business and focus on targeting niche markets or untapped demographics. Continuously innovate and stay ahead of your competitors to stand out in a saturated market.
• Compliance and legal issues: MLM businesses need to comply with legal and regulatory requirements. Stay informed about the laws and regulations governing MLM businesses in your country or region. Consult legal professionals to ensure that your MLM Matrix Plan and compensation structure are in compliance with the law.

By anticipating and addressing these challenges, you can navigate the complexities of the MLM Matrix Plan and build a successful and sustainable MLM business.

Demo Scenario: Building Your MLM Matrix Demo

To better understand how an MLM matrix plan works, let’s walk through a demo scenario. Imagine you’re starting with a 3×3 matrix, where you can recruit three downline members directly under you. Each of your downline members can also recruit three members, and this process continues down the line. As your network grows, you earn commissions based on the sales and recruitment activities within your matrix.

Conclusion: Is MLM Matrix Plan right for your business?

The MLM Matrix Plan has proven to be a powerful tool for businesses looking to unlock their potential and achieve financial freedom. Its unique structure, dynamic compensation system, and focus on teamwork set it apart from other MLM plans .

If you are seeking a plan that fosters collaboration, promotes growth, and provides attractive incentives for your distributors, the MLM Matrix Plan may be the right choice for your business. It offers numerous benefits, such as spillover commissions, limited frontline positions, and opportunities for duplication and replication.

To maximize the potential of your MLM Matrix Plan, invest in reliable MLM Matrix Plan software, provide comprehensive training and ongoing support, and overcome common challenges through strategic planning and execution.

Remember, success in MLM requires dedication, perseverance, and a strong belief in your business. With the MLM Matrix Plan as your foundation, you can unlock your potential, take your dreams

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Home » MLM Multi Level Marketing » 15 Best MLM Plans for your Multi Level Marketing Business

15 Best MLM Plans for your Multi Level Marketing Business

Senior Writer

Key Takeaways:

• Effective MLM plans align with a company’s values, motivating distributors in line with business goals.
• The blog outlines 15 diverse MLM plans, like Binary and Matrix, emphasizing their vital role in MLM business success.
• Top MLM software choices like MarketPowerPRO, Ventaforce, Hybrid MLM, Epixel MLM, and Cloud MLM Software offer varied features for efficient MLM operation management.

MLM business is evolving rapidly! The global direct selling market is projected to grow at a CAGR of 5.96% and reach USD 300598.12 million by 2027. MLM companies dedicate significant resources to developing a well-crafted compensation structure.

MLM plan is a structure that explains how the multilevel marketing firm pays its distributors for the sales that their recruited distributors and distributors themselves make. The compensation plan, an essential part of multi-level marketing software, outlines exactly how payouts are computed and dispersed among distributors.

Let’s take a look at the best MLM plans.

What Is An MLM Plan?

An MLM plan is a strategy that describes how an MLM company pays its independent sales force for both sales and the sales generated by the distributors they have recruited.

When choosing an MLM business plan, prioritize those emphasizing product sales over recruitment. Regularly review and adapt your compensation plan to ensure it aligns with business objectives and motivates distributors effectively, ensuring sustainable growth in the competitive MLM landscape.

The culture, ethics, and values of the company are reflected in these compensation schemes. Pay-effective plans are the ones that recognize, incentivize, and inspire distributors in a way that is consistent with the goals of the business.

How Do MLM Plans Work?

Different compensations function differently from one another, with varying commission structures and bonus plans. Distributors are paid under primary compensation plans according to both their own sales volume and the sales made by their downlines. In addition, commissions are paid to certain downline levels under some pay schemes.

15 Best MLM Plans for Your Multi Level Marketing Business

The vitality of MLM enterprises relies on the best MLM compensation plans they employ. Let’s have a peek at the 15 MLM business plans that can profit your business extensively:

1. Binary MLM Compensation Plans

One simple and well-liked compensation plan used in the MLM business plan is the Binary Plan. This plan, with its two-leg structure, encourages collaboration and provides attractive incentives, which helps the company and its distributors expand. Many multilevel marketing organizations that value strategic execution and thorough preparation choose it.

Supporters of the Binary Plan specifically point out that it pays out commissions every week, giving distributors instant satisfaction for their work instead of having to wait for a monthly cycle.

2. Matrix MLM Compensation Plans

The matrix MLM plan is also known as the forced matrix plan or ladder plan. There is a fixed width and depth matrix for the downline arrangement. There is a limited number of members recruited for this process.

Only three new members can qualify for width front and can earn benefits up to 5 levels. As the width is limited, the upline has to drive more sales from the downline. It enables you to set the bonus level as per the MLM business compensation plans to entice more customers for purchases and diversify the network chain for more profitability.

3. Uni-level MLM Compensation Plans

It is the most basic MLM marketing plan. It qualifies you to affiliate new candidates directly into the first line, i.e., you have direct control over the distributors. It enables you to recruit unlimited members to the front row and elongate the width.

The multi-level marketing companies make this plan more fascinating by introducing rewards, incentives, or bonuses after reaching a specific level of frontline depth and personal sales volume. The distributors can draw striking results using this MLM plan. Recruiting a large number of members to the downline allows the distributor to earn impressive returns and profits.

You May Also Read: Advantages and Disadvantages of MLM for Businesses

4. Straight-line MLM Compensation Plans

It is also recognized as a monoline and linear compensation plan and has a fundamental concept of functioning. The structure of this plan is a downward string of users, one under the other, as the new candidates join the chain and extend gradually. These plans allow the current user to make profits from every new user.

The downline structure depends on the time stamp or first-come, first-serve basis. It signifies that the member joining the hierarchy first will avail more profit. It also allows rank-based overrides and a global & matching bonus pool distribution system.

5. Board MLM Compensation Plans

The companies also acknowledge the board plan as a Revolving Matrix Plan. In this plan, there is a group of affiliates working in a team known as the board. This board consists of several members permitted by the company’s regulatory protocols. Once the board is full, it splits to form a new board composed of excess members.

All the members contain referrals, and MLM companies set the bar on the board.

The member who selects the plan authorizes the number of members recruited on the board and members promoted to the next board. Every board can earn bonuses and gain returns based on income plan arrangement.

6. Generation MLM Compensation Plans

You can also recognize the Generation plan as a Repurchase Plan or Gap Commission Plan. The policy of action for this technique depends on product selling. The affiliate has to sell the products to acquire bonuses and incentives for target achievement.

This plan is different and effective when compared to other modern marketing strategies. 

Companies that manufacture consumable products believe in media marketing. This plan depends on mouth marketing or person-to-person marketing that gives this process a personal touch. The user also considers this MLM business plan as a motivational product selling MLM.

7. Party MLM Compensation Plan

In the party compensation plan, the endorsement and selling of products are through social events. It is a direct selling method where the marketing operates in ‘business in the party’ mode. This plan is categorized under ‘ multi-level marketing ’ and ‘single-level marketing’ as well.

The implementation of this plan is the most straightforward among all the other methods. The host conducts a party where he invites all his family members, relatives, and friends. Then, he displays, promotes, and sells the desired products to the guests.

8. Gift MLM Compensation Plan

This plan is renowned as a networking plan as it aids in crowd-funding and donation programs. Based explicitly on the ‘give and take’ policy, it avails everyone involved in the process. In this, one networker helps another affiliate of other networks. In return, the other networkers facilitate the first networker to accomplish his result.

There are specific protocols to accept, as well as to donate. These criteria vary from one enterprise to the other. These organizations set the limitation on the amount to grant. These limitations can be extended by opting for premium membership or attaining higher ranks.

9. Stair-Step MLM Compensation Plan

The design of this Business plan relies on the sales volume factor. The sales volumes of the individual, as well as the group, influence the entire chain. A target is set for the affiliates and downline members to achieve. Procurement of goals will avail incentives and bonuses to the members and affiliates, promoting them to a higher designation. It offers unlimited frontline, and if one can meet the target will advance to a certain level, achieving breakaway.

10. Spillover Binary MLM Compensation Plan

The binary compensation plan only allowed two members in the downline. The sales rate depended on two downline members, and there was nothing you could do to improve the sales rate. Whereas spillover binary gives an edge to the forced binary plan.

The Spillover MLM marketing plan allows you to add a third member to either side of the subtree. You can introduce the third member to the weaker side, ensuring maximum revenue. The astounding feature of this process makes the sponsors earn better returns with prompt business strategies.

You May Also Read: The Myths and Truth About Network Marketing

11. Australian X Up MLM Compensation Plan

This compensation plan helps the members earn substantial benefits. The downline candidates can help the upper-level members to fetch dazzling benefits. If the downlines can drive maximum sales, then the sponsors can gain exclusive incentives and bonuses.

Here is how this plan works:

• If any member X reaches the target, the sponsor earns the bonus.
• This member X should have at least four members under his rank.
• Out of these four candidates, the profit generated from the two active members will divert to the sponsor, and the bonus from the other two will reach their upline member X.
• It will offer a fast bonus, rank upgrade bonus, and commission to all the active members in the MLM chain. 

12. EmGoldex MLM Plan

This plan was introduced to fulfill advertising needs. With this, it is easy to maximize sales volume. Here, the profit margin entirely depends on your downline being active. If one of the legs is inactive, then you won’t receive a hefty bonus or incentives.

Therefore, this MLM marketing plan makes the members more engrossed and active, and the proper guidance is necessary to maintain the flow of the marketing model.

13. Australian Binary MLM Compensation Plan

This plan is an abstract of a Binary compensation plan. If binary has two legs, the Australian program introduced the third leg to enhance the compensation structure. This extra leg allows for increasing the potential output. This plan is independent of members’ level, and you can acquire maximum benefits from it.

The success of this plan banks on the network circle, secure multi-level marketing software, support & services, and proficiency in MLM. 

14. Hybrid MLM Compensation Plan

The hybrid MLM plan beholds the characteristics of a binary compensation plan and a uni-level compensation plan. The structural alignment of this plan involves the entire team like a single unit.

This plan does not have any supervisor to keep track of the whole chain. All the individuals work as a team to boost the revenue generation. It helps to improve the depth of the plan, and the incentives and bonuses get divided among the entire network.

15. MMM Global MLM Plan

You can consider this plan as an extended version of the Gift and Donation plan. It comprises two steps, i.e., ‘provide help’ and ‘get help.’ 

In ‘provide help, ’ the plan requests the system to transfer the funds. The user has to fix the transfer amount. A push notification that aids the user in filling in the details and processing the transaction.

In the ‘Get help’ side, the fund gets received from the fund providers. Only those who provided help can request ‘get help,’ and no other party can avail of this feature. The help seeker has to update the details of the help providers so that in the future if the provider needs help, he can request the ‘Get help.’

You May Also Read: 11 Best Network Marketing Success Secret For Beginners

Final Words

There are many multi level marketing plans that you can choose from. Every program has its benefits and functions. So before opting for any procedure, you should perceive the policies from in and out. 

To avail your business, having a precise knowledge of MLM plans is a must. First, Study and analyze the protocols of compensation plans and then pick out the one befitting your business.

To design an MLM compensation plan, determine product pricing, define commission structures, set qualification criteria, establish ranks, and incorporate bonuses. Regularly review and adapt the plan for optimal performance.

There is no specific best MLM compensation plan, as it depends on individual preferences and business goals. Common plans include binary, matrix, and unilevel. You need to research and choose based on your needs.

You can analyze an MLM compensation plan by assessing its structure, commission rates, qualification criteria, and potential for sustainable income. Examine whether it emphasizes recruitment over product sales, ensuring transparency.

Participants in an MLM plan earn money through commissions on their sales and the sales made by their downline recruits. The more recruits and sales, the higher their potential earnings.

A legitimate MLM plan involves the sale of actual products or services, with an emphasis on retail sales. Whereas, a pyramid scheme relies primarily on recruitment, lacking genuine products or services.

Priya is a seasoned writer with expertise in the SaaS industry. With over five years of experience in the field, she deeply understands the requirement of this specific industry, its techniques, and tools. Her articles, whitepapers, and blog posts are known for their clarity, practicality, and actionable insights. Priya also possesses in-depth knowledge of SEO and content marketing, which enables her to develop effective strategies to increase website traffic and improve brand visibility.

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MLM Compensation Plans: The Matrix Model

Out of all MLM compensation plans, the matrix model (also known as the forced matrix) is probably the simplest to understand. Looking, dare I say it, somewhat like a pyramid you start off at the top of your matrix and as you grow your organisation fill in allocated spots below you.

There are of course slight variations that can be applied to the matrix model but overall the functionality is virtually the same. As your organisation grows the levels of your matrix increase and these levels provide you with residual income. This residual income is paid out in commissions via the product sales or recruitment those in your organisation achieve.

Your basic matrix model for an MLM compensation plan involves two size factors, A x B.

A is your frontline and is the number of levels wide your matrix is. It is comprised of members you personally recruit into your organisation.

B is also a number and is the number of levels deep your matrix is. Some compensation plans cap this number whilst others don’t.

Your standard MLM compensation plan matrix looks something like this:

The above is a 3X2 (2 levels deep and three levels wide) matrix and is a simple example. More complex matrix models can extend infinitely wide and deep or have limitations placed on the size so as to either force a matrix cycle or cap commission payouts.

The two biggest variations in matrix models are whether or not the matrix is fixed or not

The fixed matrix model

The fixed matrix model places limitations on your standard matrix, usually in the form of size restrictions. Typically there will be a cap in the form of A x B so as to trigger a cycle event.

A cycle is what happens when the matrix fills up and typically involves the person at the top of the matrix ‘cycling’ out and being rewarded with a commission payment.

After cycling the member is then placed into another existing matrix within the company, or at the top of a new fixed matrix. From here the member attempts to fill up the matrix again for another commission payout.

Fixed matrices are usually capped at small numbers (2 x 3 or 2 x 2 are quite common) so as to reward regular commission payouts for those who mass recruit into the business.

Due to the nature of the fixed model it is commonly affected by what’s called spillover. I’ll explain spillover a little later but the gist of it is your matrix can be faster filled off the work of your upline or those above you in a fixed matrix.

The standard matrix model

This standard variation of the matrix compensation model is a lot freer in that there are no restrictions on the width and depth of the matrix you create. Each person on your frontline spawns off an independent branch of your matrix and over time the idea is to grow these branches several levels deep.

Due to there being no restrictions on the size of your matrix, you can have as many people on your frontline and grow your organisation as many levels deep as you can achieve.

The standard matrix compensation model isn’t affected by spillover as each branch under your frontline run independent of each other. Because of this the unfixed matrix model initially relies more heavily on your own ability to fill it with recruits. In this sense team leverage is diminished in the early stages of building your organisation.

What is spillover?

When you join an MLM company with a fixed matrix compensation plan model, you’re placed at the top of a new matrix. This matrix however is a branch of your upline’s matrix, which in turn is a branch of their upline.

Spillover is what happens when someone above you in a parent matrix fills up a spot on their matrix which corresponds to a spot in your downline on your matrix.

Say for example you’re on the frontline of your uplines fixed matrix and your upline fills their frontline. The next level down (the frontline of your matrix) can then be filled over time by the recruiting efforts of your upline as they fill up the other levels of their own matrix.

Here’s an example;

In the above matrix you can see how your own matrix fits in with that of your upline. For spillover to occur, let’s say your upline has filled their frontline (spots A and B), which you are on.

You directly recruit someone to spot C and then your upline manages to recruit another member. Due to your frontline being on their matrix spot D is filled via your upline. Spot D being filled affects both your own frontline and the matrix of your upline.

This affect is called spillover and requires no effort on your part to fill a spot on your own fixed matrix.

Final Thoughts

Due to the simplicity of the matrix model it is quite popular with new MLM company startups. Unfortunately due to the reliance of recruitment as a primary factor in commission payouts there is a very real danger of recruitment becoming a primary objective for the new distributor. This in turn takes away from retail product sales and at the extreme level, from the product altogether.

Obviously each MLM company is different in this regard and prospective member’s really need to do their research on each business opportunity they are contemplating.

One simple way to establish how your potential upline runs their business is to ask yourself were you shown the business opportunity or the product first?

That should give you a decent enough indication of what the primary focus of the business is, recruitment or sales. Be aware that if it’s recruitment this is typically unsustainable and you could be joining a short lived money exchange operation.

As always, research, research, research. And then research some more. Good luck!

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29 Comments on “MLM Compensation Plans: The Matrix Model”

Can you help me, my friend wants me to join ashmax – do you think its a scam?

Hi Kelly. I haven’t looked into Ashmax but I had a brief poke around and it seems to be a 5×5 matrix based marketing platform for Global Domains International (GDI).

GDI seem to be an MLM company focusing around the sale of domain names and web services. Not too sure why I’d want to buy a domain from a MLM company though…

Ashmax is another company that the dodgy Kaz Spence is involved in.

https://behindmlm.com/companies/polaris-media-group/kaz-spence-comes-clean-about-pmg-polaris-global/ .

So; one would expect it is just another money making scam.

Is Forever Living Products a similar scam? What type of MLM company are they?

Hi Susan, I haven’t had an indepth look at them but at a glimpse Forever Living Products appears to be a product based MLM, rather then a recruitment based one.

This is a good sign but without going further into the business I can’t really comment on what kind of MLM company they are. They do appear to have been around for a while though which is another good sign.

I’ve added FLP to my research list so I’ll get around to researching them eventually.

just want to share this with you, I work in a MLM company that pays 50% to he field, would you like to know how it pays and how much ???

Sure… why not?

Hi Susan FLP has been doing business for over 30years now, so You can trust them.

Read about them at my site or on foreverliving.com

Regards Peter in Seden.

The age means nothing. Bernie Madoff’s scheme was alive for at least TEN YEARS, possibly more. Heck, he was head of NASDAQ at one time.

can mlm comp plan work if you only have one product to sell

Depends on the product and the market for it (and how much of it you can actually reach).

Product may be unique, wanted by some people, and profitable, and perhaps even great, but if you can’t REACH the prospective buyers with the marketing methods/budget you have it will NOT be profitable to you.

I’ve seen people sell Xango (to humor them, as it’s my aunt’s friend, I actually bought a case) Way too overpriced for juice with pulp and the supposed benefits. That’s a one-product company, pretty much.

I don’t see why not. The product viability ensures the success of the marketers which in turn ensures the success of the compensation plan.

Whether there’s one product or ten, if they’re viable and in demand then I don’t see why things shouldn’t work out.

Hi what do you think if the truestar matrix comp plan?

Depends if they’re selling memberships or actual products. I haven’t looked at Truestar but I’ll add them to my review list.

The above is a 2X3 (2 levels wide and three levels deep) matrix

If I’m not wrong (that is what I understood from reading the entire article), the first image of the article looks like a 3×2 matrix. Am I right ?

That it is, good pickup two and a half years from when I first published the article! 🙂

What type of matrix a party plan uses. My wife its about to join one partyplan business and I do not understand how they work or where the commisions are redistribuited.

Can you explain?

I’m not too sure what a “party plan” is.

Typically with an MLM compensation structure it has positions that need to be filled. These positions are filled with recruited affiliates (either directly or indirectly) and commissions are usually paid monthly.

These commissions are typically sourced from monthly membership fees although they can be sourced from a mandatory monthly product purchase.

hey oz i follow your posts all the time all great i would like to get your advise on a company called WakeUpNow do you made a review on it ?? a friend is asking me to join it but im scared it could be a scam, if any toughts let me know thanks take care.

Ubs : i would like to get your advise on a company called WakeUpNow

Here’s 2 articles, found by using the “Search” function in the upper right area of this website (it may be blocked by some ad-block programs):

https://behindmlm.com/companies/that-free-thing/wakeupnow-review-simple-idea-complex-commissions/

https://behindmlm.com/companies/that-free-thing/wakeupnow-to-enforce-mandatory-retail-sales-quota/

The second link is disabled to avoid moderation queue. Just copy / paste it if you want to read that article.

Hi Oz, I disagree with you. The Single Line or Monoline Compensation Plan is the Simplest to Understand and Practise.

It’s also the most prone to stalling due to the regular abuse of combining it with the selling of positions (cycler).

@UBs please research, WUN sues Kirby Cochran for $70+Million… Idk where imma slept tonight, lost interest… Lol.

I find your site interesting in being analytical so i ask a question which some companies refuse to answer and i wonder why.

In a 2 x 5 matrix where first level is filled with two then that person goes to a new matrix to fill with four spots to fill that second level of four does that require 8 new people coming in and say to fill the 3rd level of 8 does that require a group of 64 coming in to complete that level.

As each level fills the entry dollar value is increased so it is not a straight forward matrix as in 2 x 4 x 8 each line is seperate so im guessing the numbers grow Larger each time Hope you can help me. There are a couple of business matrix scams that work like this such as My Complete Business and Passive cash.

Why i am asking is I am trying to educate people it takes a lot of people to fill these programs to get to the big dollar level Regards Roy.

If there’s a fee attached to unlocking a new matrix level then existing affiliates are recycled.

If it’s a straight matrix fill from top to bottom (one-time fee) then it’s all new affiliates required to fill it.

I’d like to ask. Which MLM model fits best for an online store, and why?

Which MLM model fits best for an online store, and why?

The MLM model is used to determine commissions. An online store needs to focus on generating retail sales.

An MLM compensation plan isn’t going to generate retail sales for an online store, so which model you use doesn’t matter.

Aloha: I’m considering selling my healing service as a 3 level MLM —-is there someone I can communicate with (Consultant) that can advise me the best way to position my marketing and best–payout.

Mahalo, Craig

Hi Craig, BehindMLM doesn’t offer consulting.

I’m not sure what a “healing service” is but I’d be looking at regulations (FDA/FTC) before proceeding.

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19 Best Free Marketing & Sales Templates for Microsoft Excel

Published: January 15, 2024

In my experience, sales and marketing Excel templates can help you expedite your data analysis and reporting.

To help those of you looking for a way to sharpen your Microsoft Excel skills , I've put together a detailed list of templates you can start using to simplify your sales and marketing tasks.

10 Excel Marketing Templates

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Marketing Excel Templates

Sales excel templates, project management excel templates, free excel spreadsheet templates.

• Marketing Planner Excel Template
• Excel Marketing Budget Templates
• Marketing Dashboard for Excel
• Excel Monthly Marketing Reporting Template
• SMART Goal Excel Marketing Template
• Excel On-Page SEO Template
• Google Ads Campaign Excel Tracker
• Excel Lead Tracker Template
• Excel Sales Conversion and Close Rate Calculator
• Excel KPI Dashboard Template
• Excel Ecommerce Planning Template
• Excel Contact List Template
• Excel Sales Forecasting Template
• Excel Sales Metrics Calculator Template
• Excel Social Media Planning Template
• Excel Blog Editorial Calendar Template
• Excel Work Log Template
• Excel Social Media Content Calendar Template
• Excel Product Launch Plan Template

Why use sales and marketing Excel templates?

Many of us can recall a time in high school when we were sitting in math class and thinking, “When am I ever going to use this stuff in the real world?”

And then we suddenly find ourselves in the real world, only to realize that numbers do play a pivotal role in what we do. At least that’s true for me when it comes to digital marketing and sales.

The trouble is, many Excel templates and spreadsheets are riddled with numbers and formulas that aren’t all that inviting. And making them from scratch can be especially intimidating.

While I won't argue with that, I will say that the advantages of using Excel to organize information and streamline tasks are unparalleled.

Free Excel Marketing Templates

10 free templates to help you master marketing with Excel.

• Marketing Reporting Template
• Email Planning Template
• SEO Template

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Benefits of Microsoft Excel Templates

Microsoft Excel has many capabilities, formulas, and shortcuts :

• It stores data and has tools for data analysis.
• It performs calculations and allows you to use code for automation.
• It allows you to create social media schedules, editorial calendars, campaign trackers, and more.

Before I start talking about all things Excel templates, now’s your chance to refresh your knowledge with this helpful crash course on Microsoft Excel fundamentals .

Whether you need a source-of-truth for stakeholders to look at or a way to track the progress on a specific marketing plan or campaign, here’s a list of my favorite Excel templates to help get the job done.

1. Marketing Planner Excel Template

Download Your Free Excel Marketing Planner Template

This marketing planner template for Excel contains everything you need to plan a wide variety of email marketing campaigns . It contains specific columns for the emails’ topic, owner, status, and subject line.

You can supplement this template with a full-on marketing plan , written in Word or Google Docs format.

What I like: You can easily use this template to plan any other progressive marketing effort, such as blogging, content writing, or social media marketing. Simply change the titles of the columns to fit your specific marketing plan, and use the column to the left to track the dates of implementation.

Featured Resource: Microsoft Word Marketing Plan Template

Download Now

2. Excel Marketing Budget Templates

Download Free Marketing Budget Templates for Excel

If you want to avoid a budgeting mess at the end of the month or quarter, take a look at this collection of marketing budget templates designed to help you better organize your marketing spend.

Check out the master marketing budget template which allows you to generate a high-level visualization of your monthly and quarterly marketing budget.

What I like: From product marketing and website redesign to content marketing and events, these templates serve as a guide for marketers to visualize and track their expenses to avoid overspending.

3. Marketing Dashboard for Excel

Download Your Free Excel Marketing Dashboard

This particular tool allows you to enter metrics by campaign to auto-populate visual and easy-to-read charts. As a result, you can visualize the effectiveness of spending and activity across multiple initiatives.

You can also track the progress of different campaigns and marketing efforts, such as website content and email marketing, as well as ad spend and sales by platform.

What I like: There is no shortage of data to monitor when it comes to marketing. This template makes it easy to understand your marketing ROI and prove the effectiveness of your campaigns to stakeholders and leaders at your company.

4. Excel Monthly Marketing Reporting Template

Download Free Excel Marketing Reporting Templates

To simplify your reporting, check out these monthly marketing metrics templates and the corresponding PowerPoint template. Each month, you can update them quickly and easily to reflect your monthly visits, leads, customers, and conversion rates.

From there, you'll have everything you need to track and report on which channels are performing best.

What I like: I mean, come on — is there a feeling sweeter than hitting all of your goals for the month? Leadership loves to see ROI, and these spreadsheets can prepare comprehensive reports of your marketing metrics to send to your boss.

5. SMART Goal Excel Marketing Template

Download Your Free Excel SMART Goal Template

Whether you're planning for a new year, quarter, or month, defining a clear set of goals is critical for driving the direction of your marketing efforts..

Start with these SMART goal planning templates . Rooted in specificity, measurability, attainability, relevancy, and timeliness, these templates will help you set your team up for success.

What I like: Its user-friendly and readable format makes it one of the most shareable options on this list. You can easily send it over to your stakeholders without worrying about formatting.

6. Excel On-Page SEO Template

Download Your Free Excel SEO Marketing Template

When it comes to SEO , there‘s a lot for marketers to remember to see results.If you’re looking for the light at the end of the tunnel, pull up this handy SEO template created in Excel .

Designed to make the process of managing your SEO efforts a whole lot easier, marketers can use this template to guide their strategy step-by-step or pass it off to their webmaster to serve as a helpful guide.

What I like: This template focuses on keywords and SEO best practices, while also providing tips and tricks to identify nuances and increase productivity.

7. Google Ads Campaign Excel Tracker

Download Your Free Excel PPC Campaign Tracker

If you’re doing your Google Ads campaigns right, they probably aren't “walks in the park.” This Google Ads tracking template is a marketing campaign template that can keep you on top of your Google Ads game.

It‘ll help you catch mistakes and implement best practices across all the different campaigns and ad groups you’re running — for the top, middle, and bottom of the funnel.

What I like: It’s a perfect complement to that SEO template you've started using. Plus, this tracker will help you get the most bang for your buck from all of those ad campaigns you’re running.

8. Excel Lead Tracker Template

Download Your Free Excel Marketing Template for Lead Tracking

It's no secret that sales and marketing have a pretty rocky relationship history.

With this customizable lead tracking template in your toolbox, you'll have the information you need to reduce tension and define a concrete monthly lead generation goal. You’ll also be able to track and measure the success of specific lead generation channels and keep close tabs on your current sales close rates.

What I like: You can easily supplement this lead tracker with a marketing-sales SLA template to better align your sales and marketing teams — and get one step closer to crushing your goals.

Featured Resource: Microsoft Word SLA Template for Marketing & Sales

9. excel sales conversion and close rate calculator.

Download Your Free Excel Conversion Calculator

You have to set a conversion goal, but you don't know where to start. It sounds like you could use a hand in calculating your leads and traffic goals. Luckily, there's an Excel template for that .

What I like: You won’t have to sort through these numbers on your own. This template will take care of the math and give you a clear picture of what you need to accomplish to achieve your conversion goals.

10. Excel KPI Dashboard Template

Download Your Free Excel KPI Dashboard

If you’re a fan of the monthly metrics template, you might want to grab a copy of this template as well. The essential KPI tracker, shown above, takes the metrics your marketing team has agreed to track and describes them in more detail.

What I like: Using this template, you can assign specific employees to each KPI, define the frequency at which you'll monitor each KPI’s performance, and assign each KPI a color that reflects the quality of that KPI’s performance.

For example: Let’s say one of my company’s KPIs is organic traffic. I could set up my template such that 100 page views per month are red (poor performance), 500 page views per month are yellow (stable performance), and 1000 page views per month are green (great performance).

Sales is a number-heavy field. Whether we’re talking about sales goals or closed-won ratios, here are a few of my top templates to help expedite the process.

11. Excel Ecommerce Planning Template

Download Your Free Excel Ecommerce Planner Template

Ecommerce stores come with many moving parts. This template, which also includes an ecommerce sales plan and go-to-market template, includes dedicated space for each of your ecommerce vendors.

The kit also includes a marketing plan that guides you through market research, target market analysis, channels and vendors, and more.

What I like: Once your ecommerce store is live and running, you can use the conversion template to track performance across vendors and platforms where products are listed to give you a holistic view of your efforts.

12. Excel Contact List Template

Download Your Free Excel Contact List Template

In a business, the most important people are your customer or client base. Although your current customers constantly need to be nurtured, focusing on your contact or prospect list is also essential.

The information needed to build a prospect list is elementary. You can use this template to start building this list with the person's name, title and company, location, and contact information. Additional information could include their industry, employee size, company description, and pain points.

What I like: Once you’ve used a template like this one, you’re ready to upgrade to a CRM , which stores the same information in a more user-friendly format.

13. Excel Sales Forecasting Template

Download Your Free Excel Template for Sales Forecasting

Sales forecasting is similar to weather forecasting. Without the proper tools, it’s impossible to get an accurate idea of what’s ahead.

Excel sales forecasting helps with business planning, budgeting, and risk management. Using this template will help you track business sales, accurately predict your sales revenue, and plan for future growth.

What I like: Sales forecasting is challenging, but this spreadsheet formula makes the process easier. Ultimately, it helps strengthen the sales strategy that you build for your company.

14. Excel Sales Metrics Calculator Template

Download Your Free Excel Sales Metrics Calculator

Sales are complex. Once you add sales metrics into the picture, the complications increase.

Not only does this template help you keep track of sales, but it keeps track of your salespeople too. With the sales metrics calculator template, you can calculate customer retention rate, win rates, product revenue, and employee turnover rate.

What I like: I know there are many numbers and figures to calculate, track, record, and document when it comes to sales. This interactive Excel spreadsheet will help you get the job done.

Specific projects require a specific setup, but sometimes, the setup itself can be the most exhausting part. I’ve compiled the following templates to help you manage general projects and track your progress for specific tasks.

15. Excel Social Media Planning Template

Download Your Free Excel Social Media Planner

You might already use a social media scheduler to manage and publish your posts every week, but you still need a place to draft your social copy and decide which posts will go to which social networks.

This social media posting schedule allows you to draft each social post — the time it will post, the message you want to publish, and any link you want to accompany your message (blog post, registration page, an ebook landing page, etc).

What I like: Most social media schedulers allow you to upload social post copy in bulk from a spreadsheet. Once you've drafted all of your social posts for the week, month, or quarter, you can easily sort them by social network and import them into your social media platform of choice.

16. Excel Blog Editorial Calendar Template

Download Your Free Excel Editorial Calendar Template

Blogging plays a significant role in your ability to attract visitors and leads to your website. But managing a blog is one of those responsibilities that's easier said than done.

Use this editorial calendar template as the starting point for keeping track of all of your business‘ content. It’ll help you be more mindful of topic selection, buyer personas, keyword inclusions, and CTA alignment.

What I like: When I’m struggling with ideation, consistency, or simply just lacking organization, an editorial calendar helps me refocus my blogging efforts to generate even more traffic and leads.

17. Excel Work Log Template

Download Your Free Excel Work Log Template

How do you keep track of the day-to-day progress of your company, especially when there are people, tasks, and timelines to monitor? A work log template is essential to keeping track.

This template provides you with a project overview that makes tracking easier than ever. The work log template tracks tasks, time, status, and comments.

What I like: If you’re not ready to commit to a project management software , you can still monitor the life cycle and progress of your projects with this spreadsheet.

18. Excel Social Media Content Calendar Template

Download Your Free Excel Social Media Calendar

Since you’re probably generating tons of clicks from your Google Ads campaigns and writing amazing content, I’d imagine you'll need some help figuring out how to spread the love on social media.

The social media calendar template is the perfect resource for helping you scale and streamline your social media marketing.

What I like: When you use Excel to break out separate worksheets for each social network you‘re using, you’ll be able to keep a repository of content ideas, so you‘re never struck by writer’s block and always have something to post.

19. Excel Product Launch Plan Template

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How to Create A Network Marketing Tracking Sheet

Gordon Attard

March 22, 2016

Do you have a network marketing tracking sheet for your daily progress?

We have to be proactive and have a plan in order to move towards our goals.

If you are serious about increasing your pace and seeing results, I want you to focus on tracking your daily activity for the next 90 days.

This is what leads to the ultimate goal of higher achievements, more volume, and bigger checks.

You can’t control the rank at the end of the month—but you can control your daily activity, which leads to the new recruits—which eventually leads to the rank and volume goals.

Looking To Generate Multiple Streams Of Income?

Of course, you do… Right?

Every single person, whether if you have a job or you are self-employed and in any industry, wants to earn multiple streams of income to increase their financial portfolio.

So they can become financially free  and be able to provide for their loved ones.

Ok, so what do you need to do to make it happen?

There are 3 things that most people struggle with.

It’s  Not using the right vehicle/opportunity  – no training & support system and not having the right mentorship/guidance .

If you don’t have any of these things, you are bound to struggle at first and are likely to go out of business upon stumbling on your first “obstacle”, this is where most people quit in this industry.

What if I could help you solve these issues?

Would you like to learn exactly how to start and grow a profitable international business with unique products and world-class training events?

What if you could monetize on something that people already love, they want more of it, they brag about it all the time and that it never going to expire?

If you’re curious about this solution…

==>Click Here to Learn More<==

3 Important Things to Put on Your Network Marketing Tracking Sheet

Here is what I want you to begin tracking, starting tomorrow:

• Prospecting and Presenting: 3-way calls, live meetings, 2 on 1’s or 1-on-1’s you conduct each day!-3 is a good goal, 5 is a great goal, 10 is an excellent goal
• Personally Enrolled  -Are you tracking your performance?
• Your NO’s: – because the no’s get you closer to a yes. When you know your own personal set of odds you’ll have a better idea of what it takes to double your results and accelerate your pace. This also helps track results with your sponsor and to share what it truly takes with your team.

PERSONAL ACTIVITY and DAILY DISCIPLINED focus will be the cure to what ails you in your business—always! This will be what gets you to your goal in the next 90 days! To get you ready,

Network Marketing Tracking Sheet Tips

I want you to do the following 3 things tomorrow:

1)   Set a plan with a sponsor (if you want to set a regular talk time, you need to be committed to tracking your activity and come to the call with numbers and results!)

2)   Get an accountability partner- find someone working toward the same goal that you can talk about these numbers to weekly as well!

3)   Track daily activity- rain or shine, no matter the circumstances, no matter what!… FOR 90 DAYS! (Click Here To Get My 90 Day Game Plan)

Go Duplicate this system with your Team if you want RAPID GROWTH!

WANT A TRACKING SHEET THAT CAN HELP KEEP YOU ON TARGET?

Grab your FREE copy of my Network Marketing Tracking Sheet for your Business…

CLICK HERE to download our free, Tracking Sheet.

Did This Post How to Create A Network Marketing Tracking Sheet, Help You? If so, I would greatly appreciate if you comment below and share it on Facebook

“I Teach You the Right Mindset, Best Marketing Tips and Sales Strategies to Make More Money!”

Considering having a Mentor? Go Check Out My Work With Me Section Where We Help People Globally to Reach their Goals.

CLICK HERE   to download your Manifesto Copy!

Discover How To Sponsor More People Effortlessly  in Your Network Marketing Business, Create a Solid & Stable Residual Income & Build A Wildly Successful International Team... Starting TODAY!

PS: If You Are Struggling in Following Up with your Prospects, This is the Course you Should Get –  Click Here

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Free Marketing Plan Templates, Examples, and a Comprehensive Guide

By Joe Weller | June 27, 2016 (updated April 17, 2023)

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In this article, you’ll find a complete, step-by-step guide to developing a marketing plan that will provide your organization with a strategic course of action.

Included on this page, you’ll find examples of a marketing plan, as well as pre-built marketing plan templates to suit your needs, including a Small Business Marketing Plan , Digital Marketing Plan , Strategic Marketing Plan , and more. Then, our experts show you  how to create a marketing plan and what to include.

Marketing Plan Template

Download Marketing Plan Template

Word |  PDF | Google Doc | Smartsheet

A marketing plan is a high-level document that guides your strategic initiatives and ensures your marketing goals are aligned with your overall business objectives. Use this pre-built marketing plan template to outline the purpose your business serves, as well as its strategic goals, target market, and standards of performance, to ensure you have a thorough and deliberate plan of action.

One-Page Marketing Plan Template

Download One-Page Marketing Plan Template

Excel | Word | PDF | Google Doc | Smartsheet

This customizable one-page marketing plan takes the comprehensiveness of a formal marketing plan and pares it down to the key elements for easy scannability. This template has space for a concise business summary, overall objectives, target market, marketing strategy, financial requirements, and more. It also contains an action plan to detail marketing activities, role assignments, deadlines, and costs.

Business Marketing Plan Template

Download Business Marketing Plan Template

Word | PDF | Smartsheet

This template takes all of the essential elements of a marketing plan and organizes them into sections, but you can also add and remove components of the plan according to your needs. Use this customizable template to write your executive summary, mission and vision statements, marketing strategy, core capabilities, main goals, budget, and more, with an appendix included to back up your research and findings.

Small Business Marketing Plan Template

Download Small Business Marketing Plan Template

A small business marketing plan can be simple or elaborate, depending on your needs and the nature of your organization. This marketing plan template is fully customizable, and will guide your small business in the identification and description of your project , the mission and vision of your company, the problem you are solving, short and long-term marketing goals, the 4Ps of your marketing mix, marketing channel strategy, and more.

Marketing Plan Template for Startup Business

Download Marketing Plan Template for Startups

Word | PDF  

This pre-built marketing plan template for startups provides the savvy entrepreneur with a strong foundation from which to build his or her marketing strategies. This template will help you develop clear short and long-term business goals, identify your target market, learn your buyer’s buying cycle, pinpoint your unique selling proposition (USP), track standards of performance and measurement methods, and more, so you can feel confident in a solid plan of action.

Digital Marketing Plan Template

Digital Digital Marketing Plan Template

Excel | Smartsheet

This digital marketing plan template includes sections for online advertising and analytics, content marketing and SEO strategy, social media , and tools for tracking metrics. The template is divided into months, so you can create a timeline for your digital marketing plan. Use this template to create a comprehensive plan of action for online marketing.

Real Estate Marketing Plan Template

Download Real Estate Marketing Plan Template

This pre-built real estate marketing plan template is customizable, and comes ready to outline your strategic and tactical goals, conduct a SWOT analysis (including a competitor SWOT analysis), identify your target client type (e.g. first-time buyer, home seller, renter, etc.), define your marketing channels, provide financial forecasts, and more. It also includes a built-in plan of action for you to plan activities, assign roles, and set projected dates.

Marketing Plan Template for Nonprofit

Download Nonprofit Marketing Plan Template

Word | PDF 

This marketing plan template is tailored to meet the unique requirements of a nonprofit business. Use this customizable template to detail the organization’s background, funding climate, a comparative analysis of competitors, profile of stakeholders, short and long-term marketing goals, positioning statement, financial requirements, and more.

Strategic Marketing Plan Template

‌Download Strategic Marketing Plan Template

Excel | Google Sheets

This free strategic marketing plan template includes sections for online marketing campaigns , media relations, trade shows and events, other branding efforts, and sales campaigns. The plan clearly identifies objectives, along with target market and total costs. Months of the year are broken down into weeks for easy planning. You can modify this template to include any elements that are vital to your marketing plan.

Sales & Marketing Plan Template

Download Sales & Marketing Plan Template

This sales and marketing plan template facilitates planning around sales goals and promotional activities. This is an annual marketing calendar template that shows all 12 months on one worksheet. There are sections for public relations, online content marketing, advertising, and research. Monthly sales goals are defined at the top of the template, and there is space at the bottom for metrics to evaluate marketing effectiveness.

Tactical Marketing Plan Template

Download Tactical Marketing Plan Template

Keep track of the tactics that need to be completed as you implement your marketing strategy. This tactical marketing plan lists each task, the person responsible for the action, expenses, dates, and status. Use this template to keep your plan on schedule and to assess progress.

Product Marketing Plan Template

Download Product Marketing Plan Template

Excel | PDF | Google Sheets

This pre-built product marketing plan template enables you to differentiate your product offering from the competitors by homing in on your unique selling proposition. This template has space to detail the company’s vision, conduct a competitive analysis, define the target market, and establish the market position to ensure your marketing goals stay aligned with the company’s objectives.

Service Marketing Plan Template

Download Service Marketing Plan Template

Use this customizable service marketing plan template to clearly define your goals and initiatives, analyze your competitors, and outline the characteristics and preferences of your target persona. With space to detail your company’s vision at the top of the template, you can ensure your marketing strategy and initiatives support the mission and values of your company.

What Is a Marketing Plan?

A marketing plan is a document that outlines your marketing strategy. It serves as a roadmap for how your organization aims to raise awareness about a product or service and how it plans to deliver that product or service to target customers. The fundamental purpose of a marketing plan is to align marketing goals with overall business objectives to aid marketing project managers in improving the success of your business or organization. 

What your marketing plan looks like will depend on the size and type of your business, but even small businesses and nonprofits can benefit from careful planning.

How to Write a Marketing Plan (and What’s Included)

In this section, you’ll find a comprehensive guide for creating a marketing plan, including an example of a marketing plan outline and links to pages containing free strategic marketing templates.

Pro tip: Save time by using one of the free marketing templates above as a start.

Step 1: Build Your Marketing Plan Outline

A marketing plan outline allows you to structure your plan in a way that makes sense with the product or service you are delivering, and can also serve as a table of contents for your finalized plan. Whether you are a business-to-consumer (B2C) or business-to-business (B2B) company, a small business, or a large enterprise, the details of your plan will vary based on the nature of your business and relative marketing position. 

Below, you’ll find an example of a basic marketing plan outline that you can modify to suit your organization’s needs:

Table of Contents

Executive Summary

Mission and Vision Statement

Situational Analysis

5C Analysis

SWOT Analysis

Porter’s Five Forces Analysis

Core Capabilities

Target Market

Audience Persona

Information Collection

Pain Points and Solutions

Marketing Strategy

Buyers’ Buying Cycle

Unique Selling Proposition

Marketing Channels

Standards of Performance and Measurement Methods

Performance Standards

Marketing Metrics

Measurement Methods

Financial Summary 

Financial Forecasts

Breakeven Analysis

Assumptions

Research Results

Product Specs and Images

Step 2: Write Your Mission and Vision Statement

A mission statement is a brief summary of your company’s main purpose, and how your company provides value to its customers. In other words, it should convey your company’s reason for existence, and serve as a point of reference for future planning initiatives. Get started on developing your mission statement by using a free mission statement worksheet .

A vision statement details the future aspirations of a company or entity, and should serve as a framework for short-term and long-term strategic planning. The purpose of a vision statement is to guide internal decision-making for future courses of action. Create a compelling vision statement by using a free vision statement worksheet .

Step 3: Perform a Situational Analysis

Your marketing strategy will not be as effective without a clear picture of the overall health of your business. Gaining deeper insight into your organization’s internal and external environment will allow you to develop a plan that capitalizes on opportunities and reduces risk, and enables you to position your business in the market in a way that sets you apart from competitors. 

Three methods you can use to analyze the elements that impact the health of your business are a SWOT analysis, Porter’s Five Forces Analysis, and 5C Analysis.

This method is one of the most commonly used tools for analyzing the internal strengths and weaknesses of a business, as well as the external opportunities and threats. When detailing the internal strengths and weaknesses of a business, keep in mind that these are the factors that your company has control over. By contrast, when defining external opportunities and threats, recognize that these are factors that impact your business from the outside, and that you cannot control. 

The main purpose of the of a SWOT analysis is to identify weaknesses that can be turned into strengths, and then to leverage strengths in order to take advantage of opportunities and mitigate threats in the market. Choose from a variety of free SWOT Analysis templates , including a SWOT Competitor Analysis template to see how you measure up to competitors.

Porter’s 5 Forces

This framework is used to evaluate your competitive landscape and to identify factors in your industry that may strengthen or weaken your position. The five forces include the following components:

• Industry Rivalry
• Threat of New Entrants
• Bargaining Power of Buyers
• Threat of Substitute Products
• Bargaining Power of Suppliers

Once you have assessed each of the five forces and rated them from low to high, you will be better equipped to pinpoint and enhance your organization’s competitive position within the industry.

This marketing framework is used to assess the five key drivers of marketing decisions for a business. The five Cs of the marketing mix include the following:

• Company: Identify the unique value proposition (UVP), or the sustainable competitive advantage that the focal business possesses. Some examples include economies of scale, cost leadership, and differentiation. This component of the assessment involves evaluating the products, services, culture, and brand perception of the business to determine if it’s in the best position to satisfy customer needs. 
• Customers: Having keen insight into who your customers are and what motivates them to purchase is essential before determining how you will meet their needs. Conduct research on who is buying your products, how customers interact with your business (including online), seasonal trends, and customer feedback to gain an understanding of the behaviors and preferences of your customer base.
• Competitors: Analyzing your competitors and learning about how they conduct business will enable you to strategize a plan that will beat them at their own game. Learn about your competitor’s strengths, weaknesses, and market position by researching what differentiates them, what kind of content they’re producing, and how their customers interact with and review them. 
• Collaborators: Leveraging relationships with people, partners, and distributors that support your daily business operations is key. Since you rely on these collaborators in order to get your product in front of customers, they can be highly beneficial for helping your business run more efficiently. Create a list of all the key players that your business works with — from investors and stakeholders to shippers and photographers — to create strong relations and uncover opportunities.
• Climate: Getting a sense of societal, legal, and industry trends that could affect your business will allow you to make decisions proactively. Get an idea of where the market is heading by keeping a watchful eye on social and economic trends that could impact the way customers are buying, or new technologies like social media  that could change the way businesses operate.  

Performing a situational analysis by utilizing these methods will allow you to critically analyze your organization and industry landscape, identify opportunities, establish goals, and create a plan of action to take steps toward achieving those goals.

Step 4: Pinpoint Your Organization’s Core Capabilities

Once you’ve conducted your situational analysis and have a clear understanding of the internal and external factors impacting your business, identify the core capabilities of your organization that you can capitalize on to gain a competitive foothold. 

One way to home in on your core competencies is to gather feedback from your team by asking the following questions:

• What are our greatest strengths as a company?
• What are our greatest strengths as a team?
• What makes our product offerings better than that of our competitors?
• What makes us the best in our industry?

Your core competencies should be a reflection of your mission and vision statement, and these statements should be modified as core competencies change.

Step 5: Define Your Goals

Are you trying to raise brand awareness? Meet a sales quota? Achieve growth within a specific timeframe? Whatever your primary business, financial, or marketing goals may be, you must ensure they are detailed and data-driven, and that you have the resources needed to achieve them. In other words, you need to establish S.M.A.R.T. goals , which are defined as the following:

• Specific: Clearly convey the main goals you are trying to accomplish.
• Measurable: Determine key metrics you will use to track progress.
• Achievable: Ensure you have the capabilities and resources needed to reach your goals.
• Relevant: Verify that the marketing goals support the overall mission and vision of the business.
• Time-Oriented: Set milestones and deadlines for goals to stay on track.

If you’re feeling uncertain about the main goals you are trying to achieve, here are some questions you can ask yourself to get started on developing them:

• How do we want potential customers to feel about our brand?
• What key elements of our product or service should potential customers know about?
• What will motivate potential customers to choose us over our competitors?
• How is our business positioned in the industry?
• What is our year-to-date (YTD) growth?
• How can we best align our marketing plan with our overall business objectives so they support each other?

Once you’ve answered the above questions, develop and track your S.M.A.R.T. goals by downloading a free goal planning and tracking template .

Step 6: Identify Your Target Market

Once you’ve identified your main goals, the next step is to identify target customers that your business will direct its marketing resources to in order to achieve those goals. Since it isn’t efficient or practical to target everyone, the idea is to focus in on customers that are more likely to choose you over competitors, and to stay loyal to your brand. Read below for tips to help you define your target market.

• Look at the customers you already have: Find out who is already buying your products, and look for mutual interests, preferences, and pain points among those buyers to build customer profiles. Dive in deeper on returning customers, and those that are bringing in the most business, so you can strategize ways to target more buyers with shared characteristics. Another effective way to gain insight into your customer base is to collect information from them by way of focus groups, surveys, research, or simply asking for feedback. Learn more about customer profiles, and use a free customer profile questionnaire template to get started.
• Look at the customers your competitors have: Learn about the customers your competitors are targeting, and figure out what motivates them to choose the competition’s products over yours. Use this information to find niche markets or opportunities your competitor may be missing out on.
• Examine your products and services: Take each product or service offering and list out the key benefits they provide, and then detail how each of those benefits solve a specific problem. Use that information to identify who is most likely to have the problem those benefits provide a solution for, and then create a list of those people.
• Create a target persona: Once you’ve identified the types of people who will most likely benefit from your product, you’ll need to home in on those that are also more likely to purchase it — and choose your brand over the competition. Figure out what the demographics of each buyer looks like (e.g. age, gender, occupation), as well as the characteristics of said buyer (e.g. personality, preferences, lifestyle). Then, identify how your target persona will find your product, what will motivate them to buy it, how they will use it, and how it fits in with his or her lifestyle. Learn more about target personas, and download a free persona worksheet template to get started.

Step 7: Develop Your Marketing Strategy

Once you’ve established who you are targeting, you need to create a plan for how you will reach them and ultimately convert them into a customer. Ask yourself how you will get in front of your target audience to bring awareness to your product, and how you will convince them to purchase from you. Read below for effective concepts you can use to develop your strategy.

Identify your buyer’s buying cycle. 

Now that you’ve pinpointed your target buyer, the next step is to develop a content strategy to encourage the buyer through each stage of the customer’s journey. Understanding how your customers make purchase decisions will allow you to align your content strategy accordingly. The stages of the customer’s buying cycle include the following:

• Awareness: Prospective buyers have a problem and begin searching for solutions. This is the stage where a business invests its resources to make potential customers aware of the products and services it offers.
• Consideration: Prospective buyers are considering the various solutions available to solve their problem, and need to be convinced that they need to make a purchase in order to solve it. This is the stage where a business conveys in great detail the benefits the customer will receive after using the product, and how it is better than what the competition is offering. 
• Intent: Prospective buyers are convinced that they need to make a purchase to solve their problem, and begin to compare alternatives. This is the stage where a business reassures the customer that the product offered makes the most sense out of all the alternatives from an emotional, financial, or lifestyle perspective. 
• Purchase: Prospective buyers have made their decision on which company they will purchase the product from. Even if the buyer chooses your product, the process does not end here. The goal of your business is to develop a relationship with the customer to increase brand loyalty, and to find upsell opportunities based on purchase history.
• Repurchase: Buyers need to renew a perishable product (e.g. a supply of contact lenses) or a product subscription. The goal of your business is to foster the relationship with the customer by offering incentives to repurchase and to increase brand evangelism. An effective way to use content to retain customers is through email marketing campaigns. Find email workflow tips, examples and free templates to get started on developing your strategy.

Before creating content for each stage of the buying cycle, you must first establish your content goals for each stage, strategies to implement to meet those objectives, and the key metrics to measure results. 

Develop your content strategy for each phase of the cycle and choose from a wide variety of free content marketing templates . 

Determine the 4Ps of your marketing mix.

In order to effectively guide potential customers through each phase of the buyer’s lifecycle, use your marketing project management skills to create a strategy to get your brand in front of them, and then motivate them to purchase your product. As you develop your strategy, refer to the following 4Ps of your marketing mix:

• Product: This refers to the tangible good (or intangible service) that you are offering as a solution to meet the needs of the customer. Emphasizing the UVP and differentiating your product in the market are the first steps to setting yourself apart and positioning your brand.
• Price: This refers to the price your customer is expected to pay for the product. Understanding the perceived value (e.g. high quality versus low quality) of your product in the eyes of the customer is imperative before you can effectively set a price. Researching the price competitors are offering for similar products or alternatives is a great place to start. 
• Promotion: This refers to the communication aspect of your marketing strategy. Getting the word out about your product is the best way to raise awareness about your brand, with methods including press releases, trade shows, event marketing, videos , and advertising.
• Place: This refers to the place where customers can purchase your product. Will you sell exclusively online? Will customers need to come to a physical location? The marketing channels you will use to get the product from producer to customer (e.g. direct selling, mail order, online) are a part of your distribution strategy.

According to Justin Mares and Gabriel Weinberg, authors of the book Traction: How Any Startup Can Achieve Explosive Customer Growth , some key marketing channels to use to raise awareness about your brand include the following:

• Relevant blogs
• Unconventional PR
• Paid Ads/Remarketing
• Offline Ads
• Content Marketing
• Email Marketing
• Trade Shows
• Speaking Engagements
• Marketing Events
• Community Events

Create your budget.

Setting a budget will give you parameters to work within as you are implementing your plan. It also enables you to prioritize your needs before your wants so you can dictate resources (e.g. talent acquired) toward high priority goals first. Here are some helpful tips you can use to create your marketing budget:

• Build your budget plan based on last year’s numbers, or build from scratch according to priority.
• Make a list of action items, and then come up with an estimated budget for each item based on marketing, distribution, and promotional expenses.
• Prioritize your needs before your wants. Whatever is leftover after your needs are fulfilled, funnel those funds toward your wants.
• Invest in areas with higher return on investment (ROI) (e.g., content marketing, email marketing) to increase your buying power. 

Find a wide range of free marketing budget templates to start planning your budget. 

Step 8: Create a Value-Complexity Matrix

Once you have established your marketing tactics and set out a budget to work within, you’ll need to prioritize your plan of attack by going after low hanging fruit. In other words, you need to act on the high value items that don’t require as much effort to complete, or the “easy wins.”

Take each initiative and assign it to a quadrant within the following matrix to determine if the time and resources needed to complete the initiative are worth the value it will return.

Step 9: Conduct Financial Projections

This segment of the plan shows the financial projections you have determined to be relevant to the project based on the research you have completed for your marketing plan. This component of the marketing plan is critical in order to gain buy-in from stakeholders and investors, and to guide your decisions throughout the duration of the project. 

Common financial data to add to your marketing plan include the following:

Forecasts (sales and expenses)

Break even analysis

Financial requirements

3 year financial projections

Income statement

Cash flow statement

Balance sheet

Find a free sales forecast template, financial projections template, and other templates to prepare your financial data by checking out this page with free startup plan, budget and cost templates . 

Step 10: Identify Standards of Performance and Results Tracking Methods

The primary purpose of setting performance standards is to communicate clear expectations and desired results for an organization’s marketing efforts. For example, a performance standard might be that the total budget for X will equal a specific percentage of the yearly promotional budget for the coming year. 

Before you can adequately measure the outcome of marketing initiatives, there are some steps you must take to lay the groundwork.  

• Determine your key performance indicators (KPIs): Define measurable marketing metrics and connect them to your established goals in order to track progress.
• Establish a baseline: Understand and document how your business is currently performing so you have something to compare future performance results to.
• Define your benchmarks: Acquire data about your competition and industry to develop standard measurements that indicate how you stack up against the competition.
• Decide which tools and platforms to implement: The results you analyze are only as good as the methods you use to track them. Find a  project management platform that provides real-time visibility into project status and performance so you have the ability to make timely, data-driven decisions. 

Once you’ve completed these steps, you can begin the process of tracking performance by doing the following:

• Establish guidelines on results tracking (e.g. what to track and how often), and determine who is responsible.
• Schedule meetings to evaluate results and determine where opportunities lie. Come to each meeting prepared by using a free meeting agenda template .
• Take inventory of your content and compile a list of the top performers. Compare the results of that content to your standards of performance to see if they align, and to identify what can be improved upon. In this article, you can choose from 60-plus content marketing templates , including a content inventory template, to help you plan and execute your content marketing strategy.
• When performance improves, identify what contributed to it and allocate resources accordingly.

Once you’ve identified the standards to use to measure the effectiveness of your marketing strategy, the next course of action is to implement your plan, measure performance, and adjust accordingly.  

Step 11: Write the Executive Summary

Although the executive summary is placed at the beginning of your marketing plan, it is the final step to be completed. This section summarizes all the key takeaways from each segment of the marketing plan, and should ultimately answer each of the following questions:

• What are the overall business objectives?
• How do your marketing goals align with the business objectives?
• Which products or services will you market?
• Who is your target audience?
• What resources will you leverage (e.g. partnerships) to get your products in front of prospects?
• What gives you a competitive advantage?
• What problems are you solving?
• What solutions are you providing?
• What are the short and long-term goals of the company?

Learn more about how to create an effective summary, and find free checklists and templates to support your efforts by visiting “ How to Write an Effective Executive Summary to Yield Results .”

It’s important to remember that a marketing plan is not static, but rather a living document that should be referenced regularly, and updated as changes occur within your business and the larger business climate. 

Marketing Plan Examples and Samples

In this section, you will find examples of marketing plans created by established companies, along with sample marketing plan, to help guide you in your efforts in creating your own plan.

Lush Marketing Plan (provided by Calameo)

This first example is a marketing plan that was created for a cosmetics company. You will note that design elements throughout this plan are consistent to the brand, and sections are broken up by catchy graphics and illustrations.

RE/MAX Marketing Plan (provided by Calameo)

This example is a marketing plan that was created for a real estate company. This plan emphasizes the benefits that a customer receives by using their services, and details the promotional strategy used to connect customers to their business.

Marketing Plan Sample (provided by Houghton Mifflin Company)

This sample shows a marketing plan for a hypothetical company. Although this plan does not display any design elements or graphs, it breaks the plan up into the key components of a basic marketing plan.

Benefits of a Strong Marketing Strategy and Marketing Plan

A strong marketing plan can serve as a roadmap for your organization, and taking the time to write a formal plan — rather than relying on esoteric goals or vague strategy — can heighten the success of your overall marketing efforts. A marketing plan can help you accomplish the following:

• Pinpoint high priority initiatives.
• Eliminate projects that don’t move you toward your goals.
• Identify the right metrics to track.
• Give your team direction and alignment.
• Set realistic and measurable objectives.
• Answer key questions about your business (and how this effort fits into high-level organizational goals).
• Identify your target audience/customers and define how to best reach them.
• Develop a structured approach to building products and services that satisfy customers’ needs.
• Retain your customers.
• Save time and money.

Ultimately, your marketing plan acts as a reference document that will hold you accountable and help you execute your marketing strategy.

Best Practices for Creating a Strategic Marketing Plan

You can elevate the utility of your marketing plan by taking extra time to add elements and perform in-depth analysis of your audience, brand, and budget. Below are some tactical and analytical tips that will help you get the most out of your marketing strategy planning:

• Create a dynamic marketing plan . With so much information to cover, your plan might end up being a long, text-heavy document. Include a table of contents so that your readers can easily navigate through the plan, use bullet points to break up walls of text, and include visual illustrations that draw the eye. Also consider creating a one-page version that captures the most important high-level information.
• Back up your plan with research. All of the information provided in your plan will be more credible if you can back it up with research and facts before you go to market . Attach an appendix for any supporting material, and provide graphics (tables, graphs, pictures, etc.) to substantiate your statements and analysis.
• Understand your audience . A successful marketing campaign hinges on being able to connect your message with your target market. Use Google Analytics or another engagement analysis platform to identify your audience and their behavior, and consider creating audience personas so that you know who you are producing content for. 
• Ensure your brand is strong and stands out . This concept is complex and requires continual attention and iteration. From a marketing perspective, you can begin building brand integrity by defining your unique selling proposition, optimizing and designing your website and all other distribution channels, and creating great content. Be sure to elicit feedback from other departments so that the marketing material is in line with organizational messaging and goals.
• Create realistic financial goals . Like all other business concerns, success relies on sound budgeting. Define your budget early on to set expectations around spending and to identify any potential financial gaps, and create some metrics and KPIs that are related to financial success. In addition, make sure you can realistically support any special offers, discounts, or rewards that you offer.

You can also tap into several accessory activities to strengthen your marketing planning. These include the following:

• Promotions strategies
• Online marketing strategy
• Joint ventures and partnerships
• Referral strategy
• Strategy for increasing transaction prices
• Retention strategy

Design Tips for a Marketing Plan

Presentation is key when it comes to showcasing your marketing plan to potential investors and stakeholders. Below are some basic best practices to keep the look of your plan interesting and streamlined:

• Keep design elements and formatting consistent throughout the design brief and plan.
• Incorporate icons, charts, and infographics to make the plan more visually compelling.
• Use borders and colors (ensure consistency with your branding style guidelines) to section out your marketing plan.
• Emphasize key stats and metrics to make it scannable.
• Create a visual of your target audience persona.
• Use design elements that reflect your high-level marketing goals.
• Use a template to incorporate your own unique touch and branding.

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