How Much Does it Cost to Launch an MLM

One of the regular phone calls we receive is from people who ask how much does it cost to launch an MLM?  This article provides an overview of the important questions to help you determine the answer to this question:

  • What is the mix of products and services that you will sell?  How much research remains for you to have your MLM products and services ready for market?
  • Do you plan to support your enterprise with hosted MLM software or are you planning to build your own?
  • Do you expect to work with an MLM compensation plan expert or will you create, test, and write the programming specifications yourself?
  • Do you require the services of an MLM consultant, an MLM law firm, an MLM compensation plan design team, or an interim head of sales, and if so, how much will you budget for these services?
  • Are you in an existing location from which you can operate do you need to secure and prepare office space?
  • Will you be picking and packing 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 wages?  What is your budget for labor costs until the business is cash flowing?
  • Will you require forms, brochures, and other documents?  If so, do you have a budget for creating the templates, writing the copy, and printing them?
  • Will you design a starter kit, catalog, or other marketing collateral?  What is the plan and budget for creating and producing these?
  • Do you plan to implement a web marketing strategy that incorporates search engine and social media strategies for presenting your company to the world?
  • Do you have existing equipment to use in the business, and if so, what is its value?  What additional equipment will you need to acquire?
  • What is your budget for the launch event, travel, and costs associated with the early recruiting efforts?
  • Are you able to identify other unique expenses and capital expenditures for your company?

Early worries can be eliminated by completing a launch and operating budget .  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 budgeting and planning, don’t focus on timing as much as the actual planning of expenditures to start selling products and recruiting and supporting MLM distributors.  With some careful thought and focused homework, you can determine how much it will cost to launch your MLM.

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