Start Your Network Marketing Business in Minutes
How to Start a Network Marketing Business [11+ Steps]
Ever dreamt of being your own boss, setting your own hours, and watching the profits roll in? Dive into this guide and discover how to turn that dream into a reality by starting your own lucrative network marketing business.
Our Shortlist Steps to Start a Profitable Network Marketing Business:
- Draft a network marketing business plan.
- Pick a business name & business entity that works best for you.
- Find ways to finance your network marketing startup.
- Open a professional business bank account.
- Set up your accounting & tax reporting.
- Obatin the necessary licenses & permits for your network marketing business.
- Purchase the equipment, software, & tools needed.
Startup Costs for a Network Marketing Business:
Initiating a network marketing business can involve substantial financial commitment, the scale of which is significantly influenced by factors such as geographical location, market dynamics, and operational expenses, among others. Nonetheless, our extensive research and hands-on experience have revealed an estimated starting cost of approximately $$3,300-$7,800 for launching such an business. Please note, not all of these costs may be necessary to start up your network marketing business.
- Network Marketing Startup Expenses
Table of Contents: (Page Navigation)
11 steps to start a profitable network marketing business with little to no money:, 1. network marketing business plan..
Building a business plan for your network marketing business is essential for success in the industry because it provides an organized and structured roadmap for your business. A successful business plan lays out your strategies and objectives, details your market research and target audience, and outlines your goals. By effectively creating a comprehensive plan, it allows you to measure progress and make adjustments accordingly as your business needs change. Furthermore, having a well-developed business plan can help investors understand the potential of your network marketing business, making it easier to attract capital or find partners.
A well-crafted business plan also gives you the confidence to take risks and make decisions without fear of failure. It is important to note that the strategy outlined in the plan may change over time as you learn what works best for your particular situation. However, by maintaining a foundation of established goals, timeline, and competitive analysis in the document you can better anticipate risks and prepare effective solutions as needed.
- Check out our entire small business plan directory
2. Form the Legal Business Entity.
If you're thinking of starting a network marketing business, one of the first things you'll need to do is decide on the type of business entity to register. The four most common types are sole proprietorship, corporate organization, limited liability company (LLC), and partnership.
Each type has its own advantages and disadvantages, so it's important to carefully consider your options before making a decision.
- A sole proprietorship is the simplest type of business to set up, but it offers no personal liability protection.
- A corporate organization involves shareholders electing board members to run the business, and requires an annual meeting with stockholders' meetings every three months.
- An LLC provides extra protection for investors by limiting their liability exposure and allows flexibility in operating the business.
- A partnership involves business owners and partners, and can offer personal liability protection.
When deciding on the right type of entity for your network marketing business , it's important to consider your liability exposure and your goals for the business. If you're just starting out and selling to family and friends, a sole proprietorship may be enough. But if you're looking for more protection or to grow your network marketing business, a corporate organization or LLC may be a better choice. Be sure to weigh the pros and cons of each type and seek professional advice if necessary.
After you've chosen your business entity, you'll need to register it with the state in which you'll be doing business. This will give you the legal protections you need to operate your business and protect your personal assets. To register, you'll need to file the appropriate paperwork with your state's Secretary of State office . Be sure to research the legal and financial requirements for your chosen entity and comply with all necessary regulations.
Starting a network marketing business can be a rewarding and profitable venture, but it requires careful planning and preparation. By choosing the right business entity, registering properly, and taking other necessary steps, you can set yourself up for success. Don't hesitate to seek advice from professionals or other business owners if you have questions or concerns.
- Check out our U.S. Registered Agent Directory
- Check out our U.S. LLC Directory
Form an LLC in your state!
3. Source Financing for Your Network Marketing Business.
When starting a network marketing business, it's essential to have a solid financing plan in place. While there are several financing options available, it's important to carefully evaluate each one, as each decision may have long-term financial implications for both you and your business.
If you're just starting out, you may only need a few hundred dollars to cover initial costs, but it's still worth considering the following financing options:
1. Raising money from friends and family:
- Pros: Access to capital without giving up equity; potential for low interest rates.
- Cons: May strain personal relationships if things don't go as planned; lack of expertise and experience from investors.
2. Bootstrapping by tapping into your own savings:
- Pros: Complete control over your business; potential for greater profits in the long run.
- Cons: Limited initial funding; potential for greater personal risk.
3. Sourcing investment from outside investors:
- Pros: Access to a larger pool of capital and expertise; potential for valuable partnerships and connections.
- Cons: May require giving up equity or control of your business; potential for high interest rates or strict repayment terms.
4. Obtaining a bank loan:
- Pros: Typically low interest rates; predictable repayment terms.
- Cons: Requires good credit history and collateral; may be difficult to obtain for a new business.
5. Getting funding from a hard money lender:
- Pros: Quick access to capital; flexible repayment terms.
- Cons: High interest rates; potential for strict repayment terms and penalties for default.
Remember that these are just a few of the many options available to you. The key is to make informed decisions that work best for your current situation. Consult with your accountant before making any final decisions.
Keep in mind that there's no right answer when it comes to determining how much money to invest in your network marketing business. However, the above options can provide some guidance on which financing options may be the best fit for you and your network marketing business.
By carefully considering your financing options and seeking professional advice, you can set your network marketing business up for success.
4. Open a Business Bank Account.
Opening a business bank account for your network marketing company may seem overwhelming, but it doesn't have to be. Choosing the right type of account depends on your specific needs and the amount of money you'll be depositing.
There are three common types of business bank accounts:
- Business Checking account : The most common type of business bank account is a checking account. Checking accounts are easy to open and offer a variety of features and benefits that can be helpful for businesses. One of the biggest advantages of a checking account is that it allows you to easily deposit and withdraw money as you need it. You can also write checks from your checking account, which can be helpful for paying bills or suppliers.
- Business Savings account : Another popular type of business bank account is a savings account. Savings accounts earn interest on the money that you deposit, so they can be a great way to grow your network marketing company's cash reserve. However, savings accounts typically have lower interest rates than checking accounts and may have withdrawal limits.
- Business credit card : If you're looking for a more robust bank account for your business, you may want to consider opening a business credit card. Business credit cards can be very helpful for businesses that need to make large purchases or need to build up their credit history. However, business credit cards typically have high-interest rates and may have annual fees.
It's important to shop around and compare features and fees before making a decision. Some banks offer specialized accounts and services for small businesses that may be a better fit for your specific needs.
As always, consult with a certified professional accountant before making any final financial decisions. Once you've found the right bank account for your network marketing company, you'll be one step closer to building your business.
5. Set up Your Accounting and Taxes.
As a new network marketing business owner, it's important to prioritize setting up a proper accounting system to effectively manage your finances. Doing so will allow you to track expenses, revenue, receipts, taxes owed, and more.
There are a few different ways to establish an accounting system for your business, including using online accounting software such as QuickBooks or Xero, or hiring an accountant to handle it for you.
If you decide to manage the accounting on your own, it's crucial to choose a user-friendly system that you can easily navigate. As you begin tracking your income and expenses, you'll gain valuable insights into where your money is going and where you can make cuts or budget for future expenses. Be sure to regularly reconcile your accounts and update your records , ideally on a monthly basis, to stay on top of your finances and avoid headaches down the road.
Don't hesitate to reach out to your accountant or financial advisor for guidance on choosing and using an accounting system that's right for your business. Their expertise and support can help you navigate the accounting process with confidence.
- Find account software for your business
6. Obtain Network Marketing Business Permits and Licenses.
Starting a new network marketing business can be an exciting adventure, but it's important to remember that obtaining the proper licenses and permits is a critical step in the process. Without the right licenses and permits, you could face fines, penalties, or even legal trouble down the line.
The types of licenses and permits you need may vary depending on the location of your business, the services you offer, and the products you sell. It's important to research the requirements for your specific business and location.
To make sure you have all the necessary licenses and permits for your network marketing business, start by contacting your local business licensing office or chamber of commerce. They can help guide you through the process and provide you with the appropriate forms and applications to fill out.
Once you've obtained all the necessary licenses and permits, you can officially open your network marketing business and start operating with confidence. Don't forget to renew your licenses and permits regularly to stay compliant with local regulations.
By taking the time to obtain the proper licenses and permits , you'll be setting your network marketing business up for success and avoiding any potential legal issues in the future. Good luck on your new venture!
7. Purchase Equipment, Software, Supplies & Tools Needed.
Starting a network marketing business can be a challenging task, and acquiring the proper equipment, tools, and supplies is crucial for success.
To help you get started, here are some tips to keep in mind:
- Identify your equipment, tools, and supply needs: Determine the necessary equipment, tools, and supplies you will need to run your business effectively. Create a list of both big and small items that you'll require.
- Conduct supplier research: Research various suppliers and compare prices, quality, and customer reviews to get the best deal.
- Consider leasing or renting: If you're on a tight budget, consider leasing or renting equipment instead of buying it outright. This option can help save you money, especially for expensive equipment that you won't use frequently.
- Get everything in writing: Before making any purchases, make sure to get all the details in writing, including price, warranty, and delivery date.
- Stay organized and manage inventory: Keeping track of your equipment, tools, and supplies is essential for smooth business operations. Implement an inventory management system to track inventory levels and reorder supplies in advance.
By following these steps, you'll be well-equipped to run your network marketing business efficiently and successfully.
- Check out our small business software & tools review directory
8. Create a Brand Identity for Your Network Marketing Company.
Creating a brand identity for your network marketing company can be very difficult. There are so many factors to consider, from the logo design to the colors you use.
But if you take the time to plan and focus on what you want your customers to feel, you can create a brand identity that will set your business apart from the rest.
Here's how to get started:
1. Define your network marketing company's purpose and values.
What do you want to achieve with your business? What kind of feeling do you want your customers to have when they think of your network marketing brand? These are important questions to answer before you start creating any visuals for your brand.
2. Choose a color scheme that reflects your company's personality.
Colors can communicate a lot about a brand, so it's important to choose wisely. If you're not sure where to start, try looking at other brands in your industry and see what colors they use.
3. Develop a unique logo that represents your network marketing brand.
This is often the first thing people will think of when they hear your company name, so it's important to make it memorable. Work with a professional designer to create a logo that's both visually appealing and reflective of your brand values.
4. Create consistent branding across all channels.
Once you have your logo and color scheme, make sure you use them consistently across all of your marketing materials, from your website to your business cards. This will help reinforce your brand identity and make it easier for customers to recognize your company.
Creating a strong brand identity is essential for any network marketing business, but it doesn't have to be complicated. By focusing on your company's purpose and values, you can develop a brand that will resonate with your target audience. With a little planning and some creativity, you can create a brand identity that will make your network marketing company stand out from the rest.
9. Build a Beautiful Website.
In today's digital age, having a well-designed website is essential for any business to succeed, including your network marketing business.
A beautifully crafted website will attract and engage your customers, provide a professional image of your brand, and showcase your products and services.
To create an exceptional website for your network marketing business, consider the following steps:
- Define your website goals and target audience. This will help you determine what type of website design and content will resonate with your customers.
- Hire a professional website designer or work with a freelancer. Look at their portfolio and ask for recommendations from other business owners to find someone who has experience designing websites for your industry.
- Plan your website structure and hierarchy. Decide what pages and content will be included on your website and how they will be organized. This will ensure that your customers can find what they're looking for quickly and easily.
- Create stunning visuals and graphics that are aligned with your brand. Use high-quality images, videos, and other visual elements to showcase your products and services.
- Write compelling website copy. Your website's text should be well-written, informative, and persuasive, highlighting the benefits of your products and services.
- Test your website before launch to ensure that all the features and functionality work correctly.
By following these steps, you can create a website that is visually appealing and effective in promoting your network marketing business. Don't hesitate to seek professional assistance if you need help getting started or have any questions along the way. We're always here to help!
10. Create a Company Email Address & Phone Number.
Having a professional business phone number and email address is an important aspect of running a successful network marketing business. Not only does it give your business a more professional appearance, but it also makes it easier to stay in touch with customers and manage business communications.
To set up a professional phone number for your business, you can purchase a number from a telecom provider like Twilio or Grasshopper. You will need to create an account with the provider and register your new business phone number. This will give you access to features like voicemail, call forwarding, and more.
In addition to a business phone number, you should also set up a professional email address using a service like Google Workspace or Microsoft 365 . This will give you access to features like spam filtering, calendar integration, and more. You can configure your email account to forward messages to your business phone number so that you never miss an important message from a customer.
While you can definitely use your personal phone number and email address when you're first starting out your network marketing business, as it grows, it's important to look into other communication options to ensure that you're able to manage your business communications in a professional and efficient manner.
By following these steps and setting up a professional phone number and email address for your business, you'll be able to communicate with customers more easily and give your business a more professional appearance. This will help you to build trust with your customers and grow your network marketing business over time.
11. Make a Go-To Market Launch Strategy.
Launching a new business is an exciting time, and marketing is a crucial part of getting your network marketing business off the ground. Here are some additional tips to improve your marketing strategy:
- Define your target audience: Before you start marketing your business, it's essential to determine who your target audience is. Knowing your ideal customer will help you tailor your marketing efforts and make them more effective.
- Build a strong brand: Your brand is the foundation of your marketing strategy. Make sure you have a clear brand identity, including a logo, brand colors, and messaging that aligns with your target audience.
- Create a content strategy: Developing a content strategy can help you create a consistent message across your social media, website, and blog. This can include creating blog posts, social media posts, and other types of content that align with your brand and target audience.
- Leverage social media: Social media is a powerful tool for marketing your network marketing business. Identify the social media channels that your target audience is most active on, and create a presence there. Engage with your audience, share high-quality images of your products, and run social media campaigns to increase brand awareness.
- Collaborate with influencers: Partnering with influencers in your industry can help you reach a wider audience. Look for influencers who align with your brand and target audience and offer to collaborate with them on social media campaigns or product launches.
- Attend trade shows: Trade shows can be a great way to promote your network marketing business, network with other professionals in the industry, and get your products in front of potential customers.
Remember, marketing is an ongoing process, so be sure to track your results and adjust your strategy as needed. With a clear marketing plan and consistent effort, you'll be able to generate buzz and grow your customer base over time.
- Check out all of our small business marketing ideas
You have questions, we have answers.
Frequently Asked Questions:
Below, based on our research are some of the most common questions entrepreneurs have when thinking about starting a business.
What does it cost to start a network marketing business?
Are network marketing businesses profitable, how to come up with a name for your network marketing business, what do you need to do to define your target audience for your network marketing business, how does a network marketing business make money, list of software, tools and supplies needed to start a network marketing business:, what licenses and permits are needed to run a network marketing business.
More business resources to help you get started:
- Medical Spa Business Books
- Conferences and Events
- Online Medical Spa Resources
- Industry Publications
- Network Marketing Business Plan Template & Guidebook
- Best Professional Services Business Ideas & Examples in 2023
- Our List of 10+ Best Network Marketing Business Ideas:
- 75+ Unique, Creative & Funny Network Marketing Business Slogans
I'm Nick, co-founder of newfoundr.com, dedicated to helping aspiring entrepreneurs succeed. As a small business owner with over five years of experience, I have garnered valuable knowledge and insights across a diverse range of industries. My passion for entrepreneurship drives me to share my expertise with aspiring entrepreneurs, empowering them to turn their business dreams into reality.
Through meticulous research and firsthand experience, I uncover the essential steps, software, tools, and costs associated with launching and maintaining a successful business. By demystifying the complexities of entrepreneurship, I provide the guidance and support needed for others to embark on their journey with confidence.
From assessing market viability and formulating business plans to selecting the right technology and navigating the financial landscape, I am dedicated to helping fellow entrepreneurs overcome challenges and unlock their full potential. As a steadfast advocate for small business success, my mission is to pave the way for a new generation of innovative and driven entrepreneurs who are ready to make their mark on the world.
Get worry-free services and support to launch your business starting at $0 plus state fees.
Network Marketing Business Plan Template
Written by Dave Lavinsky
Network Marketing Business Plan
Over the past 20+ years, we have helped over 1,000 entrepreneurs and business owners create business plans to start and grow their network marketing companies.
In this article, you will learn some background information on why business planning is important. Then, you will learn how to write a network marketing business plan step-by-step so you can create your plan today.
Download our Ultimate Business Plan Template here >
What Is a Business Plan?
A business plan provides a snapshot of your network marketing business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategies for reaching them. It also includes market research to support your plans.
Why You Need a Business Plan
If you’re looking to start a network marketing business or grow your existing network marketing company, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your network marketing business to improve your chances of success. Your network marketing business plan is a living document that should be updated annually as your company grows and changes.
Sources of Funding for Network Marketing Businesses
With regards to funding, the main sources of funding for a network marketing business are personal savings, credit cards, bank loans, and angel investors. When it comes to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to ensure that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Personal savings and bank loans are the most common funding paths for network marketing companies.
Finish Your Business Plan Today!
How to write a business plan for a network marketing business.
If you want to start a network marketing business or expand your current one, you need a business plan. The guide below details the necessary information for how to write each essential component of your network marketing business plan.
Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.
The goal of your executive summary is to quickly engage the reader. Explain to them the kind of network marketing business you are running and the status. For example, are you a startup, do you have a network marketing business that you would like to grow, or are you creating a new multi-level marketing (MLM) business in another geographic region?
Next, provide an overview of each of the subsequent sections of your plan.
- Give a brief overview of the network marketing industry.
- Discuss the type of network marketing business you are operating.
- Detail your direct competitors. Give an overview of your target customers.
- Provide a snapshot of your marketing strategy. Identify the key members of your team.
- Offer an overview of your financial plan.
In your company overview, you will detail the type of network marketing business you are operating.
For example, you might specialize in one of the following types of network marketing businesses:
- Services network marketing : this type of MLM, or multi-level marketing business, is focused on the sales of services. For example, services such as insurance policies, telephone or cable television services, or educational services are offered via direct-selling, independent contractor representatives within the MLM company.
- Product network marketing: The most popular format for MLM (multi-level marketing) companies is found in selling products. Sales of products such as jewelry, health and wellness items, weight loss products, and other popular consumer categories are profitable continuity items that can create a significant income for independent contractor representatives.
- Membership network marketing: An MLM, or multi-level marketing business, can also be successfully built around the sales of memberships, such as travel, timeshare ownerships, and certain sport or hobby clubs.
In addition to explaining the type of network marketing business you will operate, the company overview needs to provide background on the business.
Include answers to questions such as:
- When and why did you start the business?
- What milestones have you achieved to date? Milestones could include the number of independent representatives you’ve signed up under your MLM business, the number of products you or your downline representatives have sold, or the number of clients your MLM business has acquired.
Your legal business structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.
In your industry or market analysis, you need to provide an overview of the network marketing industry.
While this may seem unnecessary, it serves multiple purposes.
First, researching the network marketing industry educates you. It helps you understand the market in which you are operating.
Secondly, market research can improve your marketing strategy, particularly if your analysis identifies market trends.
The third reason is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.
The following questions should be answered in the industry analysis section of your network marketing business plan:
- How big is the network marketing industry (in dollars)?
- Is the market declining or increasing?
- Who are the key competitors in the market?
- Who are the key suppliers in the market?
- What trends are affecting the industry?
- What is the industry’s growth forecast over the next 5 – 10 years?
- What is the relevant market size? That is, how big is the potential target market for your network marketing business? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.
The customer analysis section of your network marketing business plan must detail the customers you serve and/or expect to serve.
The following are examples of customer segments: individuals, families, students, schools, and hobby or travel organizations.
As you can imagine, the customer segment(s) you choose will have a great impact on the type of network marketing business you operate. Clearly, individuals would respond to different marketing promotions and products than schools, for example.
Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, including a discussion of the ages, genders, locations, and income levels of the potential customers you seek to serve.
Psychographic profiles explain the wants and needs of your target customers. The more you can recognize and define these needs, the better you will do in attracting and retaining your customers.
Finish Your Network Marketing Business Plan in 1 Day!
Don’t you wish there was a faster, easier way to finish your business plan?
With Growthink’s Ultimate Business Plan Template you can finish your plan in just 8 hours or less!
Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.
Direct competitors are other network marketing businesses.
Indirect competitors are other options that customers have to purchase from that aren’t directly competing with your product or service. This includes retail stores, travel agencies, health supplement manufacturers, or hobby club members. You need to mention direct competition, as well.
For each direct competitor, provide an overview of their business and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as
- What types of customers do they serve?
- What type of MLM (multi-level marketing) business are they?
- What is their pricing (premium, low, etc.)?
- What are they good at?
- What are their weaknesses?
With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.
The final part of your competitive analysis section is to document your areas of competitive advantage. For example:
- Will you provide options for upselling your products?
- Will you offer products or services that your competition doesn’t?
- Will you provide better customer service?
- Will you offer better pricing?
Think about ways you will outperform your competition and document them in this section of your plan.
Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a network marketing business plan, your marketing strategy should include the following:
Product : In the product section, you should reiterate the type of network marketing company that you documented in your company overview. Then, detail the specific products or services you will be offering. For example, will your MLM (multi-level marketing business) sell a product line of natural health and wellness supplements created for athletes, or will your MLM sell jewelry club memberships that auto-ship jewelry to customers once a month ?
Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your plan, you are presenting the products and/or services you offer and their prices.
Place : Place refers to the site of your network marketing company. Document where your company is situated and mention how the site will impact your success. For example, is your network marketing business located in a standalone office, or is your MLM (multi-level marketing) business purely online? Discuss how your business structure might be ideal for your customers.
Promotions : The final part of your network marketing marketing plan is where you will document how you will drive potential customers to your location(s). The following are some promotional methods you might consider:
- Advertise in local papers, radio stations and/or magazines
- Reach out to friends and family; sign them up as independent representatives
- Distribute flyers
- Engage heavily in email marketing to friends, associates, and others
- Post daily and blog frequently across all social media platforms
- Improve the SEO (search engine optimization) on your website for targeted keywords
While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.
Everyday short-term processes include all of the tasks involved in running your network marketing business, including answering calls, planning and providing products, services or memberships, tracking online orders and payments, etc.
Long-term goals are the milestones you hope to achieve. These could include the dates when your MLM, multi-level marketing company, expects to sign up your 10,000th independent contractor, or when you hope to reach $X in revenue. It could also be when you expect to expand your network marketing business into new product lines or service industries.
To demonstrate your network marketing business’ potential to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.
Ideally, you and/or your team members have direct experience in managing network marketing businesses. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.
If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act as mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing a network marketing business or successfully sold into DTC (direct-to-consumer) categories.
Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet, and cash flow statements.
An income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenue and then subtracts your costs to show whether you turned a profit or not.
In developing your income statement, you need to devise assumptions. For example, will you sign up 10 new independent representatives in your beauty category downline every day, and/or offer bundled travel rates for your MLM downline representatives as they sell travel club memberships? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.
Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your network marketing business, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a lender writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.
Cash Flow Statement
Your cash flow statement will help determine how much money you need to start or grow your business, and ensure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt.
When creating your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a network marketing business:
- Cost of equipment and office supplies
- Payroll or salaries paid to staff
- Business insurance
- Other start-up expenses (if you’re a new business) like legal expenses, permits, computer software, and equipment
Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your MLM downline independent representatives and the percentages you collect from their earnings, or a list of your “gold star” independent representatives who make over 100K in yearly revenue.
Writing a business plan for your network marketing business is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will understand the network marketing industry, your competition, and your customers. You will develop a marketing strategy and will understand what it takes to launch and grow a successful network marketing business.
Network Marketing Business Plan FAQs
What is the easiest way to complete my network marketing business plan.
Growthink's Ultimate Business Plan Template allows you to quickly and easily write your network marketing business plan.
How Do You Start a Network Marketing Business?
Starting a Network Marketing business is easy with these 14 steps:
- Choose the Name for Your Network Marketing Business
- Create Your Network Marketing Business Plan
- Choose the Legal Structure for Your Network Marketing Business
- Secure Startup Funding for Your Network Marketing Business (If Needed)
- Secure a Location for Your Business
- Register Your Network Marketing Business with the IRS
- Open a Business Bank Account
- Get a Business Credit Card
- Get the Required Business Licenses and Permits
- Get Business Insurance for Your Network Marketing Business
- Buy or Lease the Right Network Marketing Business Equipment
- Develop Your Network Marketing Business Marketing Materials
- Purchase and Setup the Software Needed to Run Your Network Marketing Business
- Open for Business
Where Can I Download a Free Business Plan Template PDF?
Click here to download the pdf version of our basic business plan template.
Our free business plan template pdf allows you to see the key sections to complete in your plan and the key questions that each must answer. The business plan pdf will definitely get you started in the right direction.
We do offer a premium version of our business plan template. Click here to learn more about it. The premium version includes numerous features allowing you to quickly and easily create a professional business plan. Its most touted feature is its financial projections template which allows you to simply enter your estimated sales and growth rates, and it automatically calculates your complete five-year financial projections including income statements, balance sheets, and cash flow statements. Here’s the link to our Ultimate Business Plan Template.
Don’t you wish there was a faster, easier way to finish your Network Marketing business plan?
OR, Let Us Develop Your Plan For You
Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success. Click here to see how a Growthink business planning consultant can create your business plan for you.
Other Helpful Business Plan Articles & Templates
- TRAINING EPISODES
- WORK WITH TANYA
- CLIENT LOVE
Network Marketing Business Plan – How To Launch Your Business
In this episode I’m going to give you an actionable Network Marketing Business plan so you know how to launch your business most effectively and you can create some massive momentum with your team . I’m also going to be sharing with you my exact Network Marketing Business Plan Template.
As a Network Marketing Professional, I am always creating ways to Launch and Re-launch my business with incentives to hit different goals and to help our team hit new goals too.
It’s also really important to draw out your Network Marketing Business Plan so that you know exactly what you need to do to reach your goals. I know it’s easier to get someone in activity mode if they know WHAT they have to do.
So what is a Business Launch?
A business launch is a period of time where you buckle down and you just Get eR Done!
There’s usually a specific goal you’re trying to hit or you just started your business and you want to do something like a business launch party where you expose a large number of people to your business in a very compressed amount of time.
In this episode, I’m going to help you draw out a Network Marketing business plan and I’m going to show you how to launch your business whether you’ve been in business for a while or you’re just getting started.
This process will help you define you Launch dates, your end goal, and the reward when you’ve hit these goals.
Let’s rock this!
Network Marketing Business Plan – How To Launch Your Business – Episode 27
First things first – You’ll need an a Launch Planner
Good thing for you, with every episode, I equip you with a FREE resource that you can download and immediately implement inside your business and start seeing results.
This week, I put together A Business Launch Planner – Your Schedule & Calendar!
This the perfect planner to map out your Network Marketing Business Plan and to create massive momentum inside your business.
Print it out, follow along in the video and apply your goals and incentives… then use this resource to work off of to help you reach the Next Level in your Network Marketing business.
Click To Tweet
How to Launch Your Business In 8 Simple Steps
(Download, print out the planner and follow along)
Step #1. Commit To Your Business Launch
Success loves speed, so when rocking out with your Network Marketing business plan – it’s honestly just little consistent stints of your time.
Carve out a season to commit to making it happen and dedicate yourself to hitting your goals. You’d be surprised how much you can accomplish in a 30-60 day window with consistent effort.
There’s a spot for you to write out your Affirmation Commitment on the FREE Launch Planner, so take a minute to write it out now.
For example, “I commit to doing the activity that I know is necessary for this Business Launch.”
Tell your sponsor, your team, and your family, and tell them you’re running your business All-Out commitment for 30-60 days and tell them why you’re doing it and what the reward is at the end of this business launch.
Step #2. Set Your Business Launch Goal
What’s your goal for this business Launch?
If you don’t have a goal or plan when you start this run, you’re bound to end up somewhere else.
You have to have a SPECIFIC launch goal in place.
Often times, I see people say “I just want to be successful.”
This is NOT a goal because it’s not specific enough.
Instead, have a goal that clearly defines what it is you’re going to accomplish.
For example, “I want to personally enroll 10 new customers/members in the next 30 days and help 2 of my team members rank advance.”
Take a minute and write down your business launch goal in Your Business Launch Planner
Step #3. Set Your Business Launch Date
When’s the start date of your business Launch?
Write it down in Your Business Launch Planner. Then, write down your end date.
My tip to you is to select a Launch Period that’s between 30-60 days. I’ve found this to be the perfect amount of time to go all-in and have massive action for a short period time and see results.
Step #4. Pick Your Incentive
Most companies have many different incentives – trip incentives, car bonus, cash bonuses, etc. Figure out what current promotions your company currently has going on and set a goal to hit a specific Incentive by the end of your launch.
For example, we’re running for a promotion right now inside our company and the next rank advancement for us includes a superiorly-exclusive vacation.
So, pick your Incentive that you’re going to get when you hit this outta the park at the end of your Launch and write it on Your Business Launch Planner.
Step #5. Pick Your Reward
This is a big important part of your network marketing business plan, you HAVE to reward yourself at the end of your business launch for the activities that you did inside your business – whether you hit your end goal or not.
IF, of course, you feel you truly did the activity and you tried your best, REWARD yourself!
Also, if you have a spouse or kids that are on this journey with you, make sure that they’re part of the reward. Let them know that you’re putting 100% into your business during your run, but at the end of it, there is this awesome reward that everyone can enjoy.
Think FUN… it could be going on vacation, or maybe a stay-cation, going camping, going to the beach, going to Disneyland – whatever the reward is, pick one and write it on Your Business Launch Planner.
Step #6. Build Your Business Launch List
With Your Business Launch Planner download, I’ve attached a List Builder for your launch list. You want to make sure you re-build your list and know who you’re going to be contacting inside your launch dates.
Take everyone off of your old list and create a whole new list called your Launch List. This list is who you’re going to be contacting, setting appointments with, and presenting to during your Launch.
This list should be perfectly in-line with your launch goal – if you have big goals, you need a BIG list.
***Do this activity. Please don’t go to your old list to start this Launch. Take some time and re-build your list so that when you’re in full Launch mode, you can work straight through each person and maximize your time and overall results.
Step #7. Get To Work
Every day during your Launch, you need to set yourself an Exposure Goal (product or business) to at least 3 prospects a day. 3 presentations a day should be on your schedule 7 days a week inside of your Business Launch period.
Close your eyes and picture the fruits of your labor after the short 30-60 day commitment!!
Step #8. Celebrate Your Business Launch
I love to Celebrate! This is so important. We’ve already touched on the reward at the end of your Launch to help you celebrate, but you can also celebrate during the times you’re doing activity.
This helps to prevent you getting burnt out.
Pat yourself on the back and celebrate the small wins – if you got your 3 presentations today, say “I’m so pumped! I got my 3 presentations done today. That’s awesome!”
Tell yourself you’re doing a good job. We are entrepreneurs and often times, most of your work is done independently. You don’t necessarily have someone with you all the time telling you you’re doing a great job, so I give you full permission to tell yourself!
If you haven’t done so already, go print off Your Business Launch Planner and follow the 8 Steps as you Launch or Re-Launch your Business!
This FREE download is the perfect tool to create massive Momentum inside your business. Print it out, apply your Goals and Incentives, and then use this resource to work off of and help you reach your Next Level in your Network Marketing business. And remember, this tool can also help your team get them in Momentum and running with you so be sure to share this free resource with them as well.
Some Awesome Resources That Will Help You Even More
Beyond Objections – Learn More
In this powerful 77 min Audio training and downloadable Cheat Sheet you will be equipped to handle any objection or question that your prospect gives you after you share your business with them. Download the audio to your smart phone, tablet or computer and take it with you on the go, at the gym or in the car and become a professional in closing the sale without being salesy or weird. It’s all about finding out what the REAL questions and objections are and leading them into the direction of a sale or new teammate.
Your First 90 Days – Learn More
This is one of my favorite resources and trainings when it comes to understanding how to start or re-start your business the Right Way. I share this training with many of my new teammates and I encourage them to go through it multiple times…it’s that good.
Influence (Book) – Learn More
Have you ever wondered how some people just have that ‘Magic’ over others? They can go up and talk to people easier, they can command attention and lead people into buying decisions easier…. how do they do it? Is it just a gift? Nope… it has everything to do with understanding how people operate and how to INFLUENCE them. This is one of my favorite books and if you’re in a position where you collect decisions from people (sales) this is a MUST read!
Did you get some value? I hope you did, because each week I put my heart into making sure you get amazing tips and strategies to rock it in your business work while creating a life you love. Wanna Share This Because You Love Sharing Valuable Info?
Each Tuesday I do a Live Q&A training on Periscope so make sure we’re connect on Periscope. Download the free app on your phone and follow me @tanyaaliza or go to www.tanyaaliza.com/periscope
If you have any questions or you want to connect more, please stay connected and drop a comment below.
You are a Rock Star!
Online Business Tips – How I Decide Where To Put My Focus In The Business: A Quick 2 Min Test
Growing An Online Business – $0 to $1,000,000
Instagram Marketing Strategy | Use The RIGHT Instagram Hashtags
Email Marketing Tutorial | My 7-Figure List Building Strategy
Affiliate Marketing – Don’t Make THIS Expensive MISTAKE!
Free Affiliate Marketing Website Using Kit.co (Make More Money)
Upmetrics AI Assistant: Simplifying Business Planning through AI-Powered Insights. Learn How
Financial forecasting, ai assistance, see how upmetrics works →, strategic planning, entrepreneurs & small business, accelerators & incubators, business consultants & advisors, educators & business schools, students & scholars.
- Sample Plans
Business Plan Course
Strategic canvas templates, e-books, guides & more.
- WHY UPMETRICS?
Customers Success Stories
- Sample Business Plans
- Retail, Consumers & E-commerce
Network Marketing Business Plan
The ability to generate residual revenue is one of the key benefits of network marketing. As a result, even if you are not actively involved in the sales process, you can still receive commissions. Thus, are you thinking of starting your network marketing business, if yes, then you will need a plan.
Need help writing a business plan for your network marketing business? You’re at the right place. Our network marketing business plan template will help you get started.
How to Write a Network Marketing Business Plan?
Writing a network marketing business plan is a crucial step toward the success of your business. Here are the key steps to consider when writing a business plan:
1. Executive Summary
An executive summary is the first section planned to offer an overview of the entire business plan. However, it is written after the entire business plan is ready and summarizes each section of your plan.
Here are a few key components to include in your executive summary:
Introduce your business:
- This section may include the name of your network marketing business, its location when it was founded, etc.
Product and services:.
- For instance, your products and services may include health & wellness products, home goods, travel & vacation services, financial services, etc.
Marketing & sales strategies:
Financial highlights:, call to action:.
Ensure your executive summary is clear, concise, easy to understand, and jargon-free.
2. Business Overview
The business overview section of your business plan offers detailed information about your company. The details you add will depend on how important they are to your business. Yet, business name, location, business history, and future goals are some of the foundational elements you must consider adding to this section:
Describe your business in this section by providing all the basic information:
- Single tier networking
- Multi-level marketing
- Affiliate marketing
- Cooperative marketing
- Describe the legal structure of your network marketing company, whether it is a sole proprietorship, LLC, partnership, or others.
- Explain where your business is located and why you selected the place.
- Additionally, If you have received any awards or recognition for excellent work, describe them.
This section should provide a thorough understanding of your business, its history, and its future plans. Keep this section engaging, precise, and to the point.
3. Market Analysis
The market analysis section of your business plan should offer a thorough understanding of the industry with the target market, competitors, and growth opportunities. You should include the following components in this section.
- People who are interested in starting their own business and need one other income, then they might be your target market.
Market size and growth potential:
Competitive analysis:, market trends:.
- For instance, the need and demand for personalized services is increasing day by day so explain how will you keep up with the trends.
Here are a few tips for writing the market analysis section of your network marketing business plan:
- Conduct market research, industry reports, and surveys to gather data.
- Provide specific and detailed information whenever possible.
- Illustrate your points with charts and graphs.
- Write your business plan keeping your target audience in mind.
4. Products And Services
The product and services section should describe the specific services and products that will be offered to customers. To write this section should include the following:
Describe your products:
Mention the products your business will offer. This list may include services like,
- Health & wellness products
- Travel & vacation services
- Financial services, etc.
In short, this section of your MLM business plan must be informative, precise, and client-focused. By providing a clear and compelling description of your offerings, you can help potential investors and readers understand the value of your business.
5. Sales And Marketing Strategies
Writing the sales and marketing strategies section means a list of strategies you will use to attract and retain your clients. Here are some key elements to include in your sales & marketing plan:
Unique selling proposition (USP):
- This could be anything from superior quality or performance to better pricing or packaging.
Marketing strategies:, sales strategies:, customer retention:.
Overall, this section of your network marketing business plan should focus on customer acquisition and retention.
Have a specific, realistic, and data-driven approach while planning sales and marketing strategies for your network marketing business, and be prepared to adapt or make strategic changes in your strategies based on feedback and results.
6. Operations Plan
The operations plan section of your business plan should outline the processes and procedures involved in your business operations, such as staffing requirements and operational processes. Here are a few components to add to your operations plan:
Training and support:, manufacturing and production:, supply chain management:.
Adding these components to your operations plan will help you lay out your business operations, which will eventually help you manage your business effectively.
7. Management Team
The management team section provides an overview of your network marketing business’s management team. This section should provide a detailed description of each manager’s experience and qualifications, as well as their responsibilities and roles.
- It should include, key executives, senior management, and other communication or product managers including their education, professional background, and any relevant experience in the industry.
Compensation plan:, advisors/consultants:.
- So, if you have any advisors or consultants, include them with their names and brief information consisting of roles and years of experience.
This section should describe the key personnel for your network marketing business, highlighting how you have the perfect team to succeed.
8. Financial Plan
Your financial plan section should provide a summary of your business’s financial projections for the first few years. Here are some key elements to include in your financial plan:
Profit & loss statement:
Cash flow statement:, balance sheet:, break-even point:.
- This exercise will help you understand how much revenue you need to generate to sustain or be profitable.
Be realistic with your financial projections, and make sure you offer relevant information and evidence to support your estimates.
Need help creating a business plan?
Turn your idea into an actionable plan 2X faster with Upmetrics
The appendix section of your plan should include any additional information supporting your business plan’s main content, such as market research, legal documentation, financial statements, and other relevant information.
- Add a table of contents for the appendix section to help readers easily find specific information or sections.
- In addition to your financial statements, provide additional financial documents like tax returns, a list of assets within the business, credit history, and more. These statements must be the latest and offer financial projections for at least the first three or five years of business operations.
- Provide data derived from market research, including stats about the industry, user demographics, and industry trends.
- Include any legal documents such as permits, licenses, and contracts.
- Include any additional documentation related to your business plan, such as product brochures, marketing materials, operational procedures, etc.
Use clear headings and labels for each section of the appendix so that readers can easily find the necessary information.
Remember, the appendix section of your network marketing business plan should only include relevant and important information supporting your plan’s main content.
This sample network marketing business plan will provide an idea for writing a successful network marketing plan, including all the essential components of your business.
After this, if you still need clarification about writing an investment-ready business plan to impress your audience, download our network marketing business plan pdf.
Sporting Goods Store Business Plan
Delivery Service Business Plan
Business Plan Components Checklist
Industry-Specific Business Plan Samples
How to Achieve Business Milestones
Strategic Marketing Process Guide
Frequently asked questions, why do you need a network marketing business plan.
A business plan is an essential tool for anyone looking to start or run a successful network marketing business. It helps to get clarity in your business, secures funding, and identifies potential challenges while starting and growing your business.
Overall, a well-written plan can help you make informed decisions, which can contribute to the long-term success of your network marketing company.
How to get funding for your network marketing business?
There are several ways to get funding for your network marketing business, but self-funding is one of the most efficient and speedy funding options. Other options for funding are:
Small Business Administration (SBA) loan
Crowdfunding, angel investors.
Apart from all these options, there are small business grants available, check for the same in your location and you can apply for it.
Where to find business plan writers for your network marketing business?
There are many business plan writers available, but no one knows your business and ideas better than you, so we recommend you write your network marketing business plan and outline your vision as you have in your mind.
What is the easiest way to write your network marketing business plan?
A lot of research is necessary for writing a business plan, but you can write your plan most efficiently with the help of any network marketing business plan example and edit it as per your need. You can also quickly finish your plan in just a few hours or less with the help of our business plan software.
Business Planning Guide & Resources
We have plenty of free business planning resources available to help you with your planning. You can download our resources to learn all about business planning.
Plan your business in the shortest time possible
No Risk – Cancel at Any Time – 15 Day Money Back Guarantee
Ready to kickstart your business planning.
– Don’t Miss It
Please fill out the form below and we'll contact you shortly.
Download Your Template Now
- Food & Beverages
- Marketing Examples
7+ Network Marketing Business Plan Examples
- 9+ Marketing Strategy Business Plan Examples
How to Write an Executive Summary for a Business Plan
Network marketing plan template.
- Google Docs
Marketing Business Plan Template Services Example
Sample for Network Marketing Business Plan Example
What Is Network Marketing?
Luminex sample network business plan example.
Simple Network Marketing Business Plan Example
Tips in Creating a Network Marketing Business Plan
1. provide specific company information, 2. clarify organizational structure, 3. focus on payment terms, 4. also focus on marketing, 5. discuss investment opportunities, business plan for networking example.
New One Page Networking Business Plan Example
Questionnaire for Network Marketing Business Plan Example
Biggest Investment/Networking Scams in US History
2. lehman brothers, 3. mf global, 4. worldcom, more design, importance of business plan, common business plan mistakes you need to avoid, how to make a business plan, what to include in a home business plan, how to do market analysis of a business plan, how to create a business plan, business plan outline with examples, 9+ advertising plan examples.
- id; ?>)" rel="noopener" role="button" tabindex aria-label="postclick">2+ Formulating a Business Plan with Questionnaire Examples
- id; ?>)" rel="noopener" role="button" tabindex aria-label="postclick">30+ Examples of Risk Plans