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.