In the course of our work as MLM consultants, we regularly make recommendations for our clients to implement.  The path to implementation is often the most challenging aspect of any executive’s responsibility.

Over the months and years of working closely with the greatest MLM companies on the planet, we have to apologize that we’ve not been on our best game when it comes to giving our clients the solutions for reaching distributors with training.  We have simply supposed that clients will create their own training systems into which we can insert our recommended solutions.

Like lights switching on, we have had the bright realization that one of the best ways we can serve our clients is to provide the vehicle that makes training work for them.  So, that’s what we are doing.  Online training tools and resources are tricky.  Our clients learn that the hard way, and so have we.

In coming blogs, I’ll share what I’m learning about the use of web training for MLM companies.  As an MLM consultant, I’m only as effective as our clients who reach their staff and distributors with the training we create for them.  Come back often and I’ll share what I’m learning about web training for MLM distributors.  The good news for readers is that we are actually doing it, and we’ll share everything we are learning with you.

As consultants in the fast-paced world of direct selling, we get a feel for the most-asked questions of MLM consulting firms.  The most-asked question we receive is, “Will my mlm business work?”

Other questions include these:

• How can I find investors for my new MLM company?
• What are the steps to launching my MLM startup?
• Can I start my MLM enterprise in 90 days?
• How do I get my first 500 MLM distributors?

The list goes on.  Importantly, as mlm consultants working closely with mlm consulting issues, I think that the most important question should be asked by us to our client:  “What do you have that others need, that is so valuable and worthwhile that direct selling becomes the most efficient and effective way to get the word out?”

The corollary might be, “What are you absolutely passionate about, and what are you best in the world at doing?”  With vision and leadership, you will really go places.  The direct selling business is booming!

Ask any MLM consultant or consulting firm!  They will agree.

A career in MLM consulting is fun and challenging.  Like all children, mine have asked more than once what I do.  I tell them that I help businesses solve problems.

This answer satisfies the young children, but more detail is required for each as they become more and more inquisitive.  “What kind of problems do you help to solve, Dad?”

“Well, some companies call me when their customer service is broken and I help them to fix it.  Others ask for my help starting a new company.”  Now that we are doing online training systems for our clients, my kids seem to understand the ways that we use the Internet to help clients in our MLM consulting roles.

As professional problem solvers, we apply our skills exclusively in the world of MLM consulting.  In addition to paying for my children’s orthodontics, MLM consulting provides me with deep and lasting satisfaction that comes from working with strong, talented, and visionary men and women.

It’s that time of year!  MLM and Home Party companies are gathering around the country in conferences and conventions.  As summer vacations come to a close, MLM and Home Party reps are once again open for business!

MLM and Home Party businesses have fared well during the recession, and September through November are traditionally peak enrolling and selling months of the year.  It’s also the time of year when people begin to stay home and socialize there, rather than going out and spending more money.  In 2009, retail sales fell around 9 percent, according to DSA’s statistics; direct sales fell as well, but only by 4 percent. In 2010, direct sales actually rose slightly, from $28.33 billion to $28.56 billion.

“During a recession, people are spending money, but they’re spending it a little bit differently,” says Amy Robinson, Vice President of Communications for the Direct Selling Association. “A woman who maybe buys a $200 suit every season may decide to buy a $25 necklace to accessorize what she already has.”

At the height of the recession from 2008 to 2009, the number of direct sellers jumped from 15.1 million to 16.1 million, before adjusting to 15.8 million sellers last year.  It’s still a powerful indicator of the strength of direct selling.  Direct selling companies are always hiring!  Startup kits range anywhere from $19 to $199, and a person can get started immediately when the idea sparks their imagination and dreams.

At LaunchSmart, we have seen a steep increase in the number and frequency of visitors and inquiries at our website.  People want to know what it takes to start a company, bounce their ideas against our executive sounding board, and take advantage of all of our resources that have been created to help them start and successfully operate a MLM or home party / party plan company.

Each week hundreds visit our LaunchSmart website where we provide MLM Consulting advice from our Team of MLM Consultants.  Of those who visit, we are contacted by some who curious, and others who are simply determined.  They ask, “should we start an MLM in a jittery economy?”

Our heroes (and clients) are those who have the vision, courage, and determination to press on in the face of uncertainty.  They tell us that there will always be uncertainty and that they see their missions as providing opportunities for others choose to take control of their financial futures.  Amazingly, some of the great success stories are happening even as the American public worry that the economic wheels are falling off.

So?  What if the wheels fall off?  We still have wants and needs that need to be met.  The most enduring network marketing, MLM, and home party companies are those that simply deliver value–not smoke and mirrors, not hyped products and offerings–true value.  From the small indulgences such as a home fragrance to products that help our wives, daughters, mothers, sweethearts, and neighbors to feel special and to get more out of life.

Throughout history, when societies are forced into even the most basic of living circumstances, direct selling in all its forms has provided a channel–if not the main channel–for moving products from manufacturers and suppliers to those who seek what you have.  So, be of good cheer.  We choose to believe that the future is bright.  We are busier than we have ever been, which is evidence of what’s to come.  As MLM Consultants, we help MLM companies get started, and there are not enough hours in the day.  Direct selling is alive and well!

Monthly operating requirements for your MLM will be determined by various factors.  Our MLM growth and financial projection models consider following variables, which you should consider so that you can fully participate in setting the plan as well as adjust course once you are in business.

• How many active MLM representatives do you expect to have in your very first month of business?
• What percentage of those reps will recruit others, and of those who recruit, how many will they recruit?
• What will be the rep and customer attrition rate?
• Will your MLM company be engaged in recruiting?
• How much product will customers purchase?
• What will be the consumption patterns and volumes of reps and customers?
• What will you charge for shipping and fulfillment?
• What will your MLM commission payout percentages be?
• What is your product margin multiplier?
• How much will you spend each month to support and grow your business?

The financial model for ongoing operations is available through the LaunchSmart Workshop, helping you to determine profitability and cash flow needs.  The revenue forecasts that you create, along with capital budget and monthly expense worksheets will complete the financial model specifically for your MLM business.

The financial model will prepare you for determining when you will need the money so that you can create the disbursement plan to present to lenders and MLM investors.

As you begin to explore how much it will cost to launch your MLM, here are some important questions to ponder:

• Are you selling services, products, or a mix of these?  What is the status of your services or products?  Do they need to be researched and developed or is the service all set for duplication and delivery or are products in the warehouse ready to go?
• Are you planning to build or lease MLM software to support your enterprise, including genealogies and compensation plan calculations?
• If you plan to retain an MLM consultant, an MLM law firm, an MLM compensation plan design team, or an interim head of sales, how much will you be budgeting for these services?
• Will you operate from an existing business location or do you need to secure and prepare office space?
• Will you be fulfilling orders, and if so, do you require warehouse and fulfillment systems (regardless of how small or grand)?
• Will initial workers be unpaid family and friends or will you be paying them money?  If you compensate them, how much will you budget for labor costs until the business is cash flowing?
• Will you create forms, brochures, and other documents?  If so, do you have a budget for creating the templates, writing the copy, and printing them?
• Will you have a starter kit, catalog, or other marketing collateral?  What is the plan and budget for creating these?
• Will you create a web marketing strategy that incorporates search engine and social media strategies for presenting your company to the world?
• Do you have equipment that can be used in the business, and if so, what is its value?  What equipment will you need to acquire to supplement what you already have?
• Will you have a budget for the launch event, travel, and costs associated with the early recruiting efforts?
• What other unique expenses and capital expenditures do you expect to have for your company?

Many of your early worries will be eliminated by completing a launch and operating budget worksheet.  If you don’t have one, contact us and we’ll get into our toolbox for you.  As you work through this important area of planning, don’t focus on timing as much as the actual planning of expenditures to start selling products and recruiting and supporting MLM distributors.

Your business should be much more than an MLM Money Machine.  Some view business in purely financial terms: business is nothing more than a way to create money.  Everything else is superfluous.  This approach can work, but it’s a very limiting way of doing business.  It squeezes the joy out of being a business owner or member of the team that creates the success of the business, especially in MLM which is a relationship business.

Some are intimidated by the financial side of business and, therefore, avoid financial management.  “As long as the bills get paid, I don’t worry about finances,” is a common, casual disclaimer.  This approach might work temporarily, but it is also limiting because it ignores the great potential that lies within the business.

Each view by itself is shortsighted.  Both approaches leave something of value out of the business equation.  And both diminish the chances of achieving the company’s true potential.

Your MLM business, like any business, should be about making your life better, not merely paying the bills.  The financial view of your business—as long as it’s not the only view—is an essential element of your management arsenal.  The pursuit of money, when balanced with the other aspects of your life on the way to achieving your personal purpose and passion, is appropriate and should be one of your most important business objectives.  In other words, always keep in mind that a successful MLM business is one that fuels the path toward your purpose and passion.  And the financial strength of your MLM business is a key component to its success.

When working at Melaleuca, LaunchSmart™ I learned early on that other direct selling companies were not the competition.  For Melaleuca, the competition was Proctor & Gamble, the personal care and home products giant.

There are different types of competitors in direct selling:

1. Traditional (non-direct selling) companies that sell the same or similar products and services
2. Direct selling companies and MLM companies that sell the same or similar products and services
3. Direct selling companies and MLM companies that offer income opportunities that will draw reps to them

As you become aware of the strengths and weaknesses of your MLM competitors, you will grow strong and confident.  If you are keenly focused on your unique differentiators, the primary one being your culture, you will find that the game of growth will be challenging and fun.

As you go through the strategic planning process, don’t skip through the SWOT analysis where you will be guided through the exercise of identifying competitors and creating profiles from which you will learn.

In deciding how to work with an MLM marketing firm, it’s vital that YOU take the first step in making the key decisions required.  Don’t forget: it’s your company.  If you choose not to use a marketing firm, but to go it alone and create your own materials, organizing your thoughts will be even more important.  Contact us for a free no-obligation overview of the questions to ask and the steps for planning your MLM marketing strategy.  Below is an overview of the topics to cover in your MLM market planning:

• Basic Business Concept
• Basic Product Concept
• Branding
• Broad Marketing Description
• Specific and Targeted Market Description
• Competitive Analysis
• Unique Selling Proposition
• General Awareness Marketing
• Lead Generation Marketing
• Distributor-Specific Marketing
• Product-Specific Marketing

Whether you do your own review or engage us to help you with your MLM marketing plan, the results are well worth the rigor.  “No rigor, no results.”