How to Start a Multi-Level Marketing Company - Brand Banao

How to Start a Multi-Level Marketing Company (MLM)

In Multi-Level Marketing company or network marketing, individuals sell products to the public — often by word of mouth and direct sales. Typically, distributors earn commissions, not only for their own sales, but also for sales made by the people they recruit. Multi-Level Marketing or Network marketing, or MLM, is a legitimate business opportunity, provided the emphasis is placed on selling products.


How to Start a Multi-Level Marketing Company


You can sign up with a Multi-Level Marketing (MLM) organisation or start your own network marketing company. You will need a wholesale or manufacturer wholesale if you start your own network marketing company. Select a name for your business then obtain a doing business license as through your local county administration office. You will also need a vendor’s license.


1. Select a product line for your Multi-Level Marketing company. For example, start a nutritional network marketing company which is the most popular type of network marketing business.


2. Search for a wholesale supplier through associations near your area or use Google to find some.


3. Call several potential wholesale and manufacturer suppliers. Ask them if they offer drop-shipping services, which will keep your inventory levels down. Find out if the supplier offers catalogs, brochures and order forms for their products. Choose the supplier that provides you with the lowest unit cost per product.


4. Set the retail price of your products according to your supplier’s recommendations. Establish a commission structure for your distributors on several different levels. Set commissions at 10 percent, for example, for first-level sales where distributors earn money off those people they recruit. Set commissions on levels two and three at 5 percent each, for example, allowing distributors to earn commissions off people your distributors recruit.


5. Install Multi-Level Marketing commission-payment software. Use your commission-payment software to calculate the commissions of all future distributors.


6. Create an instruction manual for all distributors, highlighting various ways to advertise their network marketing businesses. Create a distributor’s kit for all potential dealers, which includes the instruction manual, a catalog, price list and order forms.


7. Advertise your Multi-Level Marketing company in major business opportunity magazines, including “Business Opportunities,” “Home Business” and “Small Business Opportunities.” Start with classified ads as they are the most cost effective of all ads.


8. Mail a sales letter brochure and order form out to people who respond to your classified ads. Call people back when they inquire about your network marketing opportunity. Recruit distributors into your business on an ongoing basis.



  • Create a website and include your website in your classified advertisements. This will give people another way to join your network marketing opportunity. Get a merchant account through your bank so you can accept credit cards online. Find a web designer if you are unable to create your own website. Have the web designer create self-replicating sites for your distributors so they can recruit their own distributors. Self-replicating sites will have the same URL or address as your site, but with unique extensions or identification numbers. The success of any networking marketing company is contingent upon building a deep organisational structure.


That’s it! You are all set to do business.


What do you think about our suggestion? Share this article on your preferred social media so that more people will be able to use the information. If you need help with branding and website designs, contact us on

No Comments

Leave a Reply