MLM Business Consultancy

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With our 10 years experience in this Industry, we can provide you best solutions from starting an MLM Company to reaching the highest profitability in MLM Business

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How we can help your MLM Business

Top 6 Reasons

Why MLM Companies fail

No MLM Company plans to fail but unfortunately they fail to plan properly and in their journey towards success they make numerous mistakes and end up failing. These mistakes can be overcome if the company is aware about them & avoid making the same mistakes as most MLM Companies


Improper Start :

Starting MLM without proper planning


Financial Reasons :

Improperly designed MLM Payout Plans


Legal Issues :

Not keeping up with legal compliances


Lack of Momentum :

Failing to generate enough sales


Poor User Satisfaction :

Consumers not satisfied with Products


Other Reasons :

Internal disputes / Lack of Interest / Bad Reputation

Challenges for MLM Companies

Improper Start

Getting overwhelmed :
There are so many things to do which results into unorganized, short sighted & ineffective actions

Wrong Collaborations :
Due to improper analysis of their own requirements they end up partnering with wrong service providers

Lack of Communication Framework :
Inability to establish non verbal communication channels properly results into missed growth opportunities

Challenges for MLM Companies

Legal Issues faced with operations

Complying with State & National Govt. :
Any company has to comply with various State & National Govt. departments. Ex.. RoC, GST, Trademark etc.

Complying with MLM Guidelines :
According to Direct Selling guidelines every MLM Company should clear some compliance criteria

Pyramid Scheme / Money Circulation :
Without a value for money product an MLM Company can be considered as a Money Circulation & Pyramid Scheme

Challenges for MLM Companies

Financial Issues faced with operations

Improper Compensation Plan Design :
Compensation plan is not properly designed considering Market, Nature of Product & Sales and Cost Structure

Flawed Payout Calculation :
Revenue to Payout ratio, Projected Sales, Payout Capping limits are not calculated properly by an expert

Cash flow vs Profits :
Unclear understanding of Cash flow, Profits and Unit Economics which results into flawed business perception


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Improper Start

How most MLM Companies tackle (Not Recommended)
  • Without proper analysis and relevant domain expertise it is difficult to identify whether the Service Provider they have partnered with is compatible or not
  • If the company is generating enough revenue/profits then they have the opportunity to switch to a better service provider which is costly.
  • When the company identify flaws in their communication frameworks they try to resolve them but by then they have already missed out on various opportunities
How you should tackle (Recommended)
  • Give proper efforts or seek guidance to formulate an organized workflow and a well thought out action plan for long term results
  • Put thoughts into understanding your requirements & analyzing offerings properly to partner with right service providers
  • Leverage the full potential of non verbal communication channels to maximize results from the beginning

Legal Issues

How most MLM Companies tackle (Not Recommended)
  • There are only two possibilities when an MLM Company faces such legal challenges
  • They spend a lot of time, energy and resources to resolve legal problems they have
  • They run out of money and resources and they finally decide to quit hence they fail
How you should tackle (Recommended)
  • Plan in the beginning & prioritize legal compliances from the starting phase of the company
  • Seek legal advice from legal expert in the industry
  • Apply for all the mandatory registrations and documents without delay
  • Submit to the consumer affairs department to comply with MLM Guidelines

Financial Issues

How most MLM Companies tackle (Not Recommended)
  • If the company is growing slowly they may realize their liabilities later when it's too late
  • If they grow very fast they understand their financial problems early & if they want to solve it, they generally cut down their costs as much as possible by Reducing expenses, Not paying taxes, Changing Payout Plans
  • They can delay the consequences but can not really solve this without expert's help
How you should tackle (Recommended)
  • Don't adopt or copy the compensation plan of some other MLM Company; design and calculate your own payout plan
  • Decide product that fits with the target market and understand it’s profit margins and distribution ratios properly
  • Consult an expert for designing your own cost structure and payout calculations before starting the business

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Our Services

How we help MLM Startups

We simplify our wide portfolio of MLM Services in 4 segmentes which help Direct Selling Companies at all stages of their MLM Business

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