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.

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.

The commission processes for MLM and Party Plan Companies are the main attraction for everyone.  Thousands of hours of effort culminate this event, bringing fervor and expectancy from both field organization and company alike.  The validity of the compensation plan and its business processes are uncovered for all to see.  When the experience is successful and as expected, confidence peaks.  When it’s not, the clock begins a fast countdown to disappointment and suspicion.

When home office staff views themselves as a team and when accountability is expected from department heads, problems are taken care of.  When everybody realizes that they play a role in assuring accurate commissions, management magic happens.  Once the main event arrives and obstacles are handled upstream, the burden of the system administrator’s job is lightened.  We preach cooperation and unity, with the successful commission experience as your target.  It’s the main installment in Happy Distributors.

To set the stage for commission processing and checklists, we first make the case for consistency in processes.  The commission process begins the moment a new account is entered, or an order is entered, or credit card information is entered, or adjustments are made, and so forth.  And, the accuracy of a commission run is placed into jeopardy whenever anybody places an order on hold, makes adjustments without understanding all of the implications (and thus, the importance of selecting and training the right people, and then trusting them and holding them accountable), and dozens of touches in the critical path of an account and an order as it navigates through the system.

Accurate commissions truly are the responsibility of every employee.  In the grander scheme, the company has three promises to keep, and all employees are engaged in this quest:

• Product promise (quality product delivered on time)
• Commission promise (accurate commissions paid on time)
• Service promise (caring, competent, consistent service whenever needed)

We can promise you that once you have business processes in place, and your company is consistent in adhering to policies that support these processes, you will obtain consistent results.  Be sensitive to the risks associated with replacing these principles with your own rules that may go outside the framework we have presented in the Business Process Guide. There is much to be learned from those who have gone before you.

Importantly, never, never, never allow policies to dictate.  Encourage innovation, and provide clear channels for improving processes in ways that respond to the recommendations and requests from front-line employees who will always be your best and greatest hope for identifying the gremlins and small nits that often result in great variances away from intended trajectories.  It’s universal that small defects in your processes in the early days of your business will only appear as the company grows.

Instead of looking for people upon whom to heap blame and shame, accept that change will be constant and that great leaders understand and embrace the growth (personal and professional) that comes to all who work together to build a great organization.