MLM Company’s Business Plan: How to create your own

With economic development and growing consumerism, the retail sector in India has opted for the revolutionary way of selling goods and services to the consumers away from a fixed retail outlet by direct selling. The direct selling industry is also known as network marketing or multi-level marketing.

This industry has a very bright future and great support from FICCI. If you’re committing yourself to plan or start your own MLM Business then this is perfect guidance for you. In this article we will discuss direct selling or Network marketing or Multi-level marketing.

Codebucket IT Solutions is one of the custom MLM company’s Business Plan development service providers which design and develop all kinds of software like MLM Software solutions, Web designing, Mobile App Development and much more. Multi level marketing is one of the popular business ideas to lead your business on the peak. We cater for a wide range of custom mlm software solutions which makes Codebucket IT Solutions a leading MLM Software development company.

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There are multiple factors to take into consideration prior designing your MLM company’s business plan. And if you are already an active participant of the MLM industry then you are aware of the significance of choosing the right MLM plan for successful business. 

There is a list of factors that have to be taken care of while designing the MLM company’s business plan.

1. Package Amount
2. Product cost
3. Distribution to network
4. GST to be paid
5. Company profit
6. Admin charges

To obtain a bigger and clear picture above mentioned factors must be considered on package amount.

Let’s take an example so we can have more clarity

1. Package Amount: 12,000 INR
2. Product cost: 3000 INR
3. Distribution to network: 60% (7200)
4. GST to be paid: 900 INR
5. Company profit: These are the outcome of other parameters
6. Admin charges: 5% of the payout

This example represents Indian Company and all taken digits in Indian currency(INR). Now I will explain step by step the significance of each figure.

Package Amount

The package amount is an absolutely unbiased factor and have to be considered 1st to go ahead. So, if you are not positive about your package amount you can not go ahead with plan designing.

Product cost

This is the factor that comes after only the package amount. We have to preserve this within the range of 20% to 30% of the package amount. So I kept this at 25%. You will be confused that how to manage product cost by 25% and show it’s value 200% but don’t stress, Code Bucket (https://www.codebucketitsolutions.com) will assist you to do that.

Distribution to Network

This consists of Binary amount, Direct income, Rewards, Royalty and any other kind of income you prefer to provide to your leaders.

 We advise to keep it within a range of 40% to 60%. Depending on the selection of business plan like which type you are going to work amongst binary or matrix or generation.

GST to be paid

You need to pay GST on your package amount and provide the invoice to your network of that amount. We know how to save GST legally while designing your business plan. We can even offer slab off 0% GST also.

Company profit

This is the outcome of the other parameters. So Formula will be

Company profit = Package amount – (Product cost + Distribution to Network + GST)

This profit will be on a single package.

Company Profit = 12000R-(3000+7200+900)R

Company Profit =12000R-11100R

Company Profit=900R

Admin charge

Admin charge generally lies within range to 5% to 15%. It depends on company priorities and their network. We advise to keep it 5%. We deduct from the admin charge from net income.

How to measure the success of MLM Company’s Business Plan?

Every business plan ought to include tasks, deadlines, dates, forecasts, budgets, and metrics. It’s measurable.

To evaluate a successful MLM company’s business plan we have keep in mind, that apart from a good design strategy there are some of other qualities of a good business plan Such as specifications, follow ups and planning process.

It’s realistic. It can be implemented.

The first and foremost  measure of good or bad in a business plan is realism. We don’t get results for ideas that can’t be implemented. For example, a brilliantly written, beautifully formatted, and excellently researched business plan for a product that can’t be built is not a good business plan.

A plan that requires millions of dollars of investment but doesn’t have a management team that can get that investment is not a good plan.

Therefore it is absolutely necessary to choose the equivalent MLM company’s Business plan for your company that can meet all the requirements. Code Bucket emphasize on the realism and always suggest best options for our readers and customers.