MLM Business
Expectations at Startup
Starting your MLM shouldn't be difficult.... why in the world are MLM Startup
Companies being pitched on Blue Sky? In other words... Why are they being
pitched $75k for software that should be half the price. Of course, if
Custom programming is requested, I can see it that high or higher, but come on!
I have reviewed hundreds of compensation plans in the last year and very few
were custom! In fact, most could be done between $18k and $35k!
Consultants are pitching $50k or more! That's insane! Compensation Plan
or Marketing Plan Design quotes are outrageous! It is absolutely
embarrassing, bleeding MLM Startups of funds without necessity.
In all honesty, there are costs in starting your business, and there is real
value in some products and services.
It is impossible to consider running a company on $5k Software. Seriously
though, which would you choose?
|
Item |
Option 1 |
Option 2 |
|
MLM Consultant |
$75,000.00 |
$25,000.00 |
|
MLM Compensation Plan |
$25,000.00 |
$10,000.00 |
|
MLM Software |
$150,000.00 |
$30,000.00 |
|
MLM Attorney |
$50,000.00 |
$25,000.00 |
|
MLM PreLaunch |
$100,000.00 |
n/a |
|
MLM Merchant Account |
$15,000.00 |
n/a |
|
MLM Product Markup |
6-10 Times |
n/a |
** No price is absolute, but unless you have extensive requirements of your
Consultant, Compensation Plan, Software Customizations, Attorney, etc., there is
no good reason to be charged so much. You are in the People Business...
Network Marketing, if you need to Pay for PreLaunch company, you don't need to
be in MLM. Granted you may be required to have additional signatures or
proof of financial stability, but why would anyone be told to spend so much on a
Merchant Account? And finally, we aren't living in the 90's with lot's of
High Risk Venture Capitalists and Consumer ignorance to over inflated prices.
Today, consumers are generally aware of comparable products. Unless you
have genuine uniqueness in your product, prepare to price it comparable to the
price in stores. Even if you have genuine uniqueness, over-inflation is
insane and will create a collapse of your business model.
Request Fair Services of others, Offer Fair Priced Products and Services to
Consumers.
Let's get this industry cleaned up!
Regards,
Scott H Leonard
- Consultant
- Speaker
- Trainer
- MLM Software Provider
- Guerrilla Marketing Expert
- Web Services Provider
MLM Software Central - San Diego
121 Broadway St, Suite 347, 348
San Diego, CA 92101
1-888-221-0106