Historians say that more millionaires were created during the great depression than in any other point in history.

I’m amazed by the number of entrepreneurs and dreamers who are coming forward in our down times to launch new business.  Somebody forgot to tell them that times are tough!

These are the women and men embracing the American dream.  They have the courage to dream, the discipline to think, and the backbone to act.  So far this week we have served more than ten individuals and companies who are up to their elbows in starting and running their MLM companies and Home Party Plan businesses.  Ranging from eLease who is placing the first round of test market assumptions to their idea of expansion through direct selling, to Endless Glow – a home party company providing airbrush tanning services and products by two lovely sisters who aren’t aware that there is a recession.

Somebody forgot to tell them.

Occasionally, we just want to see how carefully our readers are going through the blogs.  No doubt, there is a lot out there about starting and running the successful MLM business.  From Free Manuals to big-ticket consulting, it’s all there to help you successfully launch your MLM.

We’ve witnessed some great and some not-so-great MLM launch events, and here is a simple lesson we have learned about planning a successful MLM launch meeting.

Your MLM launch event is quite possibly the most important event you will ever hold.  It can be the spark that starts a wildfire of momentum.  The tasks—and timing of those tasks— associated with the MLM launch event are outlined in a very detailed project plan that we follow for our clients.  Because of the importance of this event, we provide this tool for our clients to use for preparing the MLM launch event to help them consider and organize all the important details that must be addressed.  If you will send me an email and request our detailed MLM launch event checklist–be sure to mention this blog in your email–I’ll send it to you for free, just for asking.  Be sure to email terrel@launchsmart.com and put “MLM Launch Event Checklist” in the subject line.  Write a brief note and tell me how you are planning to use the checklist.

If you’re looking for precise figures on what you should expect to spend when starting a new MLM business or Party Plan company, it will cost between a few thousand dollars and few million dollars.  How’s that for precision?

Keeping in mind that expenses will vary depending on a variety of elements, here are the MLM startup budgeting categories:

1.    Product development and initial inventories. If your product is an online service, then the only costs are those associated with programming and delivery.  On the other hand, if the product consists of a line of sku’s (jargon: stock keeping units), the development and first-run inventories quickly become vital expenditures that require capital.

2.    Compensation plan development, testing, and programming. One of the significant hidden costs can quickly become the programming back-and-forth with the MLM software company.  The more comprehensive and particular the written specifications, the more predictable and affordable the programming costs.

3.    Legal services. Apart from MLM legal forms & documentation, registration fees, and distributor policies, you may have unique requirements such as labeling review, SEC considerations, and unique legal requirements that are determined by the products or services that you offer.

4.    Marketing and design services. A basic electronic draft of brochure may cost little or nothing, or you might spend thousands—even tens of thousands—on design, MLM website development, video production, brochures, tag lines, logos, and image / brand development.

5.    International markets. Some launch “under the radar” for a brief period, but put a great deal at risk in doing so.  Others spend hundreds of thousands for MLM international groundwork.

6.    MLM Software and Operations. The infrastructure must carry the vision into reality.  Its moving parts are numerous, and the budget is a function of how you build the vehicle.  Designing and programming your own MLM software solution will take an entirely different complexion than adapting your company to an existing application.

7.    Strategy and planning. The costs associated with these disciplines are opportunity costs if not done (or done poorly) or hard costs if MLM consultants are engaged to assist.

8.    Recruiting and Training. The initial recruiting and development of early MLM distributors and field leaders will not be too expensive if it is an organic, grass-roots approach; on the other hand, if you sponsor fly-in events, you can spend a small fortune.

There is not right way or wrong way, just your way.  And, there are ways to be most efficient, most effective, and most profitable.  Other resources at this website include articles on MLM startup budgets.