If you’re looking for guidance with your MLM startup budget, you should expect to spend between a few thousand dollars and few million dollars. How’s that for precision?
Expenses and startup costs vary for so many reasons, and here are the MLM startup budget categories:
1. Product development and initial inventories. If your product is an web service, then the costs are those associated with programming and design. On the other hand, if the product consists of multiple sku’s (jargon: stock keeping units), development and first-run inventories quickly become significant expenditures that require capital.
2. Compensation plan development, testing, and programming. A significant hidden cost can quickly become the compensation plan programming with your MLM software company. The more comprehensive and particular you can make the written specifications, the more predictable and affordable the programming costs will be.
3. Legal services. In addition to 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 demanded by the products and services that you offer.
4. Marketing and design services. A basic electronic version of your 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 carries your vision into reality. 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. Costs associated with planning are opportunity costs if not done (or done poorly) or hard costs if MLM consultants are engaged to assist.
8. Recruiting and Training. Initial recruiting and development of 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 includeon MLM startup budgets.