How to start up a multi-level marketing (MLM) company?

Multi-Level Marketing (MLM) concept is getting popularity in India. As number of networking team members are joining MLM field and established members are thinking about starting own venture in MLM sector.

One of the main problems that is faced by new entrepreneurs in MLM networking is How to can set-up own MLM company. Setting-up networking team is second part of discussion. First you should know, how you can set-up own network marketing company.

In this article, we are going to describe in detail about licences, documents, software, and marketing tools etc for starting and establishing new Multi Level marketing company.

First we will talk about marketing tools required for a MLM company:

  • Commission Payment Software 
  • Wholesaler/Distributor Supplier 
  • Company Manual 
  • Instruction Manual 
  • Catalogs/Magazines/Pamplets 
  • Product Manual/Price List 
  • Brochures 
  • Order Forms 

Licenses Required:

Licenses that are required to start up multi level marketing company depend at nature of product, you are going to launch in Market. Suppose if you are going to launch a herbal product then licenses may be different if you are going to launch food supplement and health supplement products.

There are few common requirements that are applicable to all MLM companies and some that vary according to nature of product, you want to launch.

Common Licences and Requirements:
  • Company Registration (One Person Company/Private Limited Company/Limited Liability Company etc) 
  • Goods and Service Tax Identification Number (GSTIN) 
  • Bank Account 
  • Trade Mark Registration 

Other Licenses and Requirements:
  • FSSAI (Food Safety and Standards Authority of India) Registration/License in case you are launching Food Supplement and Health Supplements 
  • For Ayurvedic, Herbal and Cosmetic product’s sale and marketing, you will not need any extra license 

Step wise process for set-up:

Process for Establishing:

After starting MLM Company, you will need of establishing it by joining new members and creating a networker team. Advertise your networking business in major business magazines by giving heading like Business opportunities, Home Business, Small Business, Earn from Home by working few hours etc. You can start with classified ads which are low in cost and proceed with expensive ads as business grows. You can also advertise your business through online Ads like Google Ads, Facebook Ads etc.

Courier/mail Company manual, price list and order forms to people who respond to your ads and make contact to you. Follow-up those with call are at regular basis. Recruitment of networkers and distributors is ongoing process. Success and failure of MLM company depend at number of successful networkers you keep join with you.

Creating a website having sigh-up facility for new member’s joining is also one of best way to promote your networking business.

Easy step to create MLM team:
  • Prepare a unique business plan
  • Launch a product/service that is unique and you can promote it revolutionary 
  • Create a commission structure (Incentive, pay out, percentage of commission at each level) 
  • Time and delivery of commission should be on time. 
  • Don’t use old words like MLM, Member base company, Networking Company to describe your start-up. Use some unique words like direct selling, binary compensation, CSR (Corporate Social Responsibility) etc. You can also give your system a unique name that will build your reputation in market. 
  • Build your company credibility through publishing article about your company. Making company manuals and promote about your company everywhere you go. Join direct selling organisations. Attend networker's meets. 
  • Fix a high price of your product so product can compensate 8 to 10 level networker’s commission and give a reason to your distributor to pretend it as good quality. 
  • Create tools to help distributors become successful. Your distributor’s success will create your own success. 
  • Take participate in business expo and exhibitions. Manage periodic events that get people excited and recommended to MLM. 

Related Links:
List of Health Supplements Manufacturers for MLM companies
Best Quality Ayurvedic and Food/Health Supplement Manufacturer in India


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