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.