Costs To Launch MLM Model

I have launched several mlm companies in the past.
The first one in 2001 (including product and tracking software) cost me about $30K to start. I didn't had to spent money for advertising as I had many associates with already built downlines. I was lucky that this company was in profit the first month. With most mlm launch you need to have the extra cash to support company's expenses for many months.

The software is the most important part. You need to buy a good software with good support. A decent software could cost over $10k. Support and hosting for the software can cost about $600.00 per month. Most good software developers will not let you host their software on your server. You need the support because there is always something going wrong with these software.

Forget those $300+ software. If you buy one those cheap software, you will be out of business your first months. There are hundreds of developers selling software that no longer work. My second project took months to launch because I decided to go with a cheaper software. I finally had to spend the $12K I did not want to spend to launch the project.

As successful as I was, I will never launch another mlm companies ever again. Dealing with product manufacturers, banks, payment processors, merchant accounts, distributors, employees, etc, takes a lot out of you.

The worst are the credit cards processing people. They will freeze your account without any notice - even if you haven't done anything wrong. All they need is for a few people to complaint that they did not authorized the transactions. One company froze my accounts because I did $90K in sales in 3 days.

Good Luck.

Hi,

see live demo.

Product: MLM-Social-Bug

If you consider moving forward with your mlm, perhaps i could help you on the technical side.

Thanks,

They vary enormously, depending mostly on your location. You haven't mentioned this, but if you're in the US, or any EU country in Europe, or hoping to do business in either, then "legal/regulatory compliance" is going to be a very major overhead in the very early stages. The companies that overlook this crucial input, or decide to "worry about it later after they've taken some money" are typically among the overwhelming majority who don't survive their first year.

Watching Shark Tank on TV has given me a new perspective on some businesses. They are all over the licensing of products for money and letting other people deal with manufacturing and everything else.

Would your product sell well within an MLM company that already exists? If so, license the product to them and just take the 5-10% royalties. There was a t-shirt company on the last episode of Shark Tank and they took an offer of 75K and 7% royalties. Now they can just collect the checks and move on to something else. I need to build up one of my t-shirt lines and get on the show.