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Direct Sales Company Business Plan [Sample Template]

By: Author Tony Martins Ajaero

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Are you about starting a direct sales company? If YES, here is a complete sample direct sales business plan template & feasibility report you can use for FREE .

Okay, so we have considered all the requirements for starting a direct sales company . We also took it further by analyzing and drafting a sample direct sales company restaurant marketing plan template backed up by actionable guerrilla marketing ideas for direct sales companies. So let’s proceed to the business planning section.

There are some people who are highly skilled when it comes to selling products and services. There is a saying that gifted sales agents can sell snow to Eskimos.

If per chance you consider yourself to be gifted in the art of selling, then you should consider starting a direct sales company. The truth is that, this line of business is highly profitable and in some cases, you may not have to commit your money to the products you want to sell. You can get supply on trust.

Just like most business, the direct selling companies industry is pretty open for as many people that are interested in the industry as long as you have what it takes to sell goods and services. Even if you don’t have the finance and other requirements for starting a standard direct selling company, you can come into the industry by starting – out as a freelance sell agent for a manufacturing company / companies.

If you have decided to start a direct sales company, then you must make sure that you carry out thorough feasibility studies and also market survey. This will enable you choose the right products to sell, and also properly locate the business in a community or city with the right demography; a location that can readily accept your products.

Below is a sample direct sales company business plan template that will help you successfully launch your own business;

A Sample Direct Sales Company Business Plan Template

1. industry overview.

Direct sales companies are involved in the retailing of a product or service from one person to another without having a fixed retail location. Players in this industry are referred to as independent consultants, distributors or sales representatives.

Sales are usually done via home parties, workplaces, trucks or wagons, street corner carts or door-to-door. It is important to state that companies who are involved in direct sales of fuel and food for immediate consumption are not included in the direct selling companies industry.

The Direct Selling Companies Industry is indeed in a mature stage of its growth. The industry is characterized by growth in line with the overall outlook of the economy, consolidation from the largest players in the industry and wholehearted market acceptance of industry products and services.

The products and services of direct sales companies will continue to be in high demand by households and business establishment in the united states, most especially as the number of businesses and employees increases. Manufacturing companies are also expected to continue to outsource their direct sales functions so as to focus their attention on their core area of operations.

Despite the fact that intense competition has negatively affected the Direct Selling Companies industry in the last half a decade, the industry has managed to achieve growth because of the strengthening economy. Increased competition from mass merchandisers, department stores and online retailers has threatened the industry by providing a wider selection of substitute products at low prices in a convenient one-stop shop location.

Nevertheless, because a good number of direct sales companies have no physical locations, the price advantage competitors enjoy over many retailers is minimized, which has somewhat mitigated the loss of industry customers. Driven by improved consumer confidence and disposable income, consumer spending is anticipated to rise further going forward.

The Direct Selling Companies Industry is indeed a large industry and pretty much active in countries such as United States of America, United Kingdom , France, Italy, Nigeria, south africa Japan, China, Germany, and Canada et al.

Statistics has it that in the United States of America alone, there are about 704,924registered and licensed direct selling companies scattered all across the United States responsible for employing about 797,208people and the industry rakes in a whopping sum of $40 billion annually.

The industry is projected to enjoy 0.7 percent annual growth within 2011 and 2016. No establishment can boast of having the lion share of the available market in this industry. The industry is open for fair competition. The Direct Selling Association (DSA) in the United States has approximately 200 registered members.

A recent report published by IBISWORLD shows that the Direct Selling Companies industry is considered to have a low level of concentration, with the four-largest players estimated to account for less than 10.0 percent of industry revenue in 2016.

The report revealed that the industry is highly fragmented, characterized by a large number of individually owned businesses that are small in size. These operators work within a small locality and serve a limited clientele. That is about 97.0 percent of industry operators are considered non – employers.

In terms of employing operators, in 2016, 74.6 percent of total establishments are estimated to have fewer than five employees, while less than 1.0 percent employ more than 100 workers. This extreme prominence of small operators is characteristic of an industry with low concentration.

One thing is certain when it comes to starting a direct sales company, if you are able to conduct your market research and feasibility studies, you are more likely not going to struggle to identify the right products and services to sell and the right location to sell them. If you have a robust network and you are well positioned, you can indeed maximize sales and profits with your direct sales company.

2. Executive Summary

Fred Nelson® Direct Sales Company, LLC is a registered and licensed direct sales company that will be based in Carson City – Nevada. The company will be involved in the direct sales of home and family care products, wellness and personal care products, clothing and accessories, leisure and educational products, and other products and services.

We are aware that to run an all – round and standard direct sales company can be demanding which is why we are well trained, certified and equipped to perform excellently well.

Fred Nelson® Direct Sales Company, LLC is a client – focused and result driven direct sales company that retail quality goods from top manufacturing brands at an affordable fee that won’t in any way put a hole in the pocket of our customers.  We will ensure that we comb every nooks and crannies of Carson City – Nevada so has to maximize sale of our goods and services.

At Fred Nelson® Direct Sales Company, LLC, our client’s best interest would always come first, and everything we do is guided by our values and professional ethics. We will ensure that we hire professionals who are well experienced in the direct selling companies industry to help us handle our sales.

Fred Nelson® Direct Sales Company, LLC will at all times demonstrate her commitment to sustainability, both individually and as a firm, by actively participating in our communities and integrating sustainable business practices wherever possible.

We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely. We will cultivate a working environment that provides a human, sustainable approach to earning a living, and living in our world, for our partners, employees and for our clients.

Our plan is to position the business to become one of the leading brands in the direct selling companies industry in the whole of Carson City – Nevada, and also to be amongst the top 20 direct sales companies in the United States of America within the first 10 years of operations.

This might look too tall a dream but we are optimistic that this will surely be realized because we have done our research and feasibility studies and we are enthusiastic and confident that Carson City – Nevada is the right place to launch our direct sales company before launching out to other cities in the United States of America.

Fred Nelson® Direct Sales Company, LLC is private registered business that is owned by Fred Nelson and his immediate family members. Fred Nelson has well over 10 years of experience working at various capacities within the direct sales companies industry in the United States of America. He graduated from both University of California – Berkley with a Degree in Marketing, and University of Harvard (MSc.).

3. Our Products and Services

Fred Nelson® Direct Sales Company, LLC is in the direct selling companies Industry to sell a wide range of goods and services to corporate and individual clients and of course to make profits, which is why we will ensure we go all the way to enter into partnership with loads of manufacturers within and outside of the United States of America.

We are in the direct selling companies industry to make profits and we will ensure that we do all that is permitted by the law of the United States to achieve our aim and ambition of starting the business. Our business offerings are listed below;

  • Direct selling of home goods
  • Direct selling of coffee-break services
  • Direct selling of cosmetics
  • Direct selling of vitamins and nutritional supplements
  • Direct selling of home delivery newspaper routes
  • Direct selling of party plan merchandisers
  • Direct selling of miscellaneous merchandise

4. Our Mission and Vision Statement

  • Our vision is to build a direct sales company brand that will become the number one choice for both individual and corporate clients in the whole of Carson City – Nevada. Our vision reflects our values: integrity, service, excellence and teamwork.
  • Our mission is to sell, quality and affordable goods and services from top manufacturing companies within and outside of the United States at affordable prices to residence of Carson City Nevada. We will position the business to become one of the leading brands in the direct sales line of business in the whole of Carson City – Nevada, and also to be amongst the top 20 direct sales companies in the United States of America within the first 10 years of operations.

Our Business Structure

Normally we would have settled for two or three full – time staff members, but as part of our plan to build a standard direct sales company in Carson City – Nevada, we have perfected plans to get it right from the beginning which is why we are going the extra mile to ensure that we have competent, honest and hardworking employees to occupy all the available positions in our organization.

The picture of the kind of direct sales company we intend building and the business goals we want to achieve is what informed the amount we are ready to pay for the best hands available in and around Carson City – Nevada.

We will ensure that we only hire people that are qualified, honest, hardworking, customer centric and are ready to work to help us build a prosperous business that will benefit all the stake holders (the owners, workforce, and customers).

As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of five years or more depending how fast we meet our set target. In view of that, we have decided to hire qualified and competent hands to occupy the following positions;

  • Chief Executive Officer

Accounting and Tax Consultants

Admin and HR Manager

Merchandize Manager

  • Marketing and Sales Executive (Sales Agents)
  • Customer Care Executive / Front Desk Officer

5. Job Roles and Responsibilities

Chief Executive Office:

  • Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions; providing educational opportunities.
  • Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
  • Responsible for fixing prices and signing business deals
  • Responsible for providing direction for the business
  • Responsible for signing checks and documents on behalf of the company
  • Evaluates the success of the organization
  • Responsible for providing accounting advice to corporate clients
  • Provides accounting advice to individuals and small businesses
  • Responsible for handling accounts preparation
  • Responsible for handling financial auditing services
  • Responsible for handling financial statement review services
  • Handles other financial assurance services and general accounting services
  • Responsible for handling tax planning and consulting services, individual tax preparation and representative services and corporate tax preparation and representative services
  • Other services
  • Responsible for handling other financial consulting and advisory related services such as designing accounting systems, preparing financial statements, developing budgets, tax preparation and compliance work, consulting assistance, restructuring and providing advice on matters related to accounting.
  • Responsible for overseeing the smooth running of HR and administrative tasks for the organization
  • Designs job descriptions with KPI to drive performance management for clients
  • Regularly hold meetings with key stakeholders to review the effectiveness of HR Policies, Procedures and Processes
  • Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
  • Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
  • Defines job positions for recruitment and managing interviewing process
  • Carries out staff induction for new team members
  • Responsible for training, evaluation and assessment of employees
  • Responsible for arranging travel, meetings and appointments
  • Updates job knowledge by participating in educational opportunities; reading professional publications; maintaining personal networks; participating in professional organizations.
  • Oversee the smooth running of the daily office activities.
  • Manages vendor relations, market visits, and the ongoing education and development of the organizations’ buying teams
  • Helps to ensure consistent quality of tires from different manufacturers are purchased and retailed in good price that will ensure we make good profit
  • Responsible for planning sales, monitoring inventory, selecting the merchandise, and writing and pricing orders to vendors
  • Ensures that the organization operates within stipulated budget.

Marketing and Sales Executive / Sales Agents

  • Handles the direct sales of home and family care products, wellness and personal care products, clothing and accessories, leisure and educational products, and other products and services
  • Finds out the customer’s needs, recommend, select and help locate the right merchandise, describe a product’s features and benefits.
  • makes suggestions and encourage purchase of products
  • Provides information about warranties, manufacturing specifications, care and maintenance of merchandise and delivery options
  • Bags or packages purchases and gift wrap merchandise
  • Identifies, prioritizes, and reaches out to new partners, and business opportunities et al
  • Identifies development opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of relevant projects.
  • Writes winning proposal documents, negotiate fees and rates in line with company policy
  • Responsible for handling business research, marker surveys and feasibility studies for clients
  • Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
  • Develops, executes and evaluates new plans for expanding increase sales
  • Documents all customer contact and information
  • Represents the company in strategic meetings
  • Helps to increase sales and growth for the company
  • Responsible for preparing financial reports, budgets, and financial statements for the organization
  • creates reports from the information concerning the financial transactions recorded by the bookkeeper
  • Prepare the income statement and balance sheet using the trial balance and ledgers prepared by the bookkeeper.
  • Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
  • Responsible for financial forecasting and risks analysis.
  • Performs cash management, general ledger accounting, and financial reporting for one or more properties.
  • Responsible for developing and managing financial systems and policies
  • Responsible for administering payrolls
  • Ensures compliance with taxation legislation
  • Handles all financial transactions for the company
  • Serves as internal auditor for the company

Client Service Executive / Front Desk Officer

  • Welcomes guests and clients by greeting them in person or on the telephone; answering or directing inquiries.
  • Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
  • Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
  • Manages administrative duties assigned by the manager in an effective and timely manner
  • Consistently stays abreast of any new information on the company’s products, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients
  • Receives parcels / documents for the company
  • Distributes mails in the organization
  • Handles any other duties as assigned

6. SWOT Analysis

Fred Nelson® Direct Sales Company, LLC engaged the services of a core professional in the area of business consulting and structuring to assist the firm in building a well – structured direct sales company that can favorably compete in the highly competitive direct selling companies industry.

Part of what the team of business consultant did was to work with the management of our organization in conducting a SWOT analysis for Fred Nelson® Direct Sales Company, LLC. Here is a summary from the result of the SWOT analysis that was conducted on behalf of Fred Nelson® Direct Sales Company, LLC;

Our core strength lies in the power of our team; our workforce. We have a team that can go all the way to sell any goods or services; a team that are trained and equipped to meet and surpass their targets. We are well positioned in a location with the right demographic composition for the kind of goods and services that we are going to be selling.

As a direct sales company, it might take some time for our organization to break into the market and gain acceptance especially from corporate clients in the already saturated direct selling companies industry; that is perhaps our major weakness. So also, we may not have the required cash to give our business the kind of publicity we would have loved to.

  • Opportunities:

The opportunities in the direct selling companies industry is massive especially if you know the right goods and services to sell per – time. As a standard and well – positioned direct sales company, we are ready to take advantage of any opportunity that comes our way.

Increased competition from mass merchandisers, department stores and online retailers will surely pose a threat to the growth of our direct sales company. Other threats that we are likely going to face as a direct sales company operating in the United States are unfavorable government policies , the arrival of a competitor within our location of operations and global economic downturn which usually affects purchasing / spending power.

There is hardly anything we can do as regards these threats other than to be optimistic that things will continue to work for our good.

7. MARKET ANALYSIS

  • Market Trends

The Direct Selling Companies Industry, just like most businesses in the retailing industry, depends on strong consumer spending to spur the demand for industry products. Over the last half a decade, the economy has begun recovering from recessionary declines with both the Consumer Confidence Index and disposable income increasing.

Going forward, as the economy of the United States continues to recover and consumers are expected to loosen their discretionary budgets, the industry is anticipated to thrive. This is why rising disposable income and increase in essential needs will support demand for industry products

Lastly, in recent time, the direct selling landscape has seen tremendous changes in the last 20 years; it has grown from the smaller door to door selling to a more organized and far reaching venture. The introduction of technology (telemarketing and email marketing) makes it easier for direct sales companies to reach out to a larger market far beyond their present location.

8. Our Target Market

Possibly it will be safe to submit that the direct selling companies industry has a wide range of customers; every individual, households and corporate organizations et al would have one or more things that they would need to buy from direct sales companies.

In view of that, we have mapped out sales strategies that will help us sell our goods and services to the residence of Carson City – Nevada. We have conducted our market research and feasibility studies and we have ideas of what our target market would be expecting from us.

We are in business to retail a wide range of goods and services to the following groups of people and corporate organizations;

  • Men and women
  • Bachelors and Spinsters
  • Corporate Executives
  • Business People
  • About to wed couples
  • Sports men and women

Our competitive advantage

A close study of the direct sales companies industry reveals that the market has become much more intensely competitive over the last decade. As a matter of fact, you have to be highly creative, customer centric and proactive if you must survive in this industry. We are aware of the stiffer competition and we are well prepared to compete favorably with other leading direct sales companies and throughout the United States and Canada.

Fred Nelson® Direct Sales Company, LLC is launching a standard one stop direct sales company that will indeed become the preferred choice of residence of Carson City – Nevada and every other location where we will market our goods and services.

One thing is certain; we will ensure that we sell a wide range of products from leading manufacturers at all times. One of our business goals is to make Fred Nelson® Direct Sales Company LLC, a one stop direct sales company for individuals, households and corporate organizations. Our excellent customer service culture, telemarketing and email marketing, online store, and various payment options will serve as a competitive advantage for us.

Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category (startups direct sales companies) in the industry meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our aims and objectives. We will also give good working conditions and commissions to freelance sales agents that we will recruit from time to time.

9. SALES AND MARKETING STRATEGY

  • Sources of Income

Fred Nelson® Direct Sales Company, LLC is in business to sell wide products from top manufacturing brands to the residence of Carson City – Nevada. We are in the direct selling companies industry to

10. Sales Forecast

One thing is certain when it comes to direct sales business, if you are into the sale of loads of goods from top manufacturing brands, you will always attract customers cum sales and that will sure translate to increase in revenue generation for the business.

We are well positioned to take on the available market in Carson City – Nevada and we are quite optimistic that we will meet our set target of generating enough income / profits from the first six month of operations and grow the business and our clientele base.

We have been able to critically examine the Direct Selling Companies Industry and we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projections are based on information gathered on the field and some assumptions that are peculiar to startups in Carson City – Nevada.

Below are the sales projections for Fred Nelson® Direct Sales Company, LLC. It is based on the location of our business and other factors as it relates to direct sales company start – ups in the United States;

  • First Fiscal Year-: $250,000
  • Second Fiscal Year-: $450,000
  • Third Fiscal Year-: $750,000

N.B : This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor same products from same manufacturing brands and customer care services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.

  • Marketing Strategy and Sales Strategy

Before choosing a location to launch Fred Nelson® Direct Sales Company, LLC, we conduct a thorough market survey and feasibility studies in order for us to be able to be able to penetrate the available market and become the preferred choice for residence of Carson City – Nevada. We have detailed information and data that we were able to utilize to structure our business to attract the numbers of customers we want to attract per time.

We hired experts who have good understanding of the direct selling companies industry to help us develop marketing strategies that will help us achieve our business goal of winning a larger percentage of the available market in Carson City – Nevada.

In other to continue to be in business and grow, we must continue to sell our products; which is why we will go all out to empower or sales and marketing team to deliver. In summary, Fred Nelson® Direct Sales Company, LLC will adopt the following sales and marketing approach to win customers over;

  • Open our direct sales company in a grand style with a party for all
  • Introduce our direct sales company by sending introductory letters alongside our brochure to organizations, households and key stake holders in Carson City – Nevada
  • Ensure that we have a wide range of quality products from different manufacturing brands at all times.
  • Make use of attractive hand bills to create awareness our direct sales company
  • Create a loyalty plan that will enable us reward our regular customers
  • Engage on road shows within our neighborhood to create awareness for our direct sales company and also to sell our products.
  • List our business and products on yellow pages ads (local directories)
  • Leverage on the internet to promote our business
  • Leverage on telephone (telemarketing) and email (email marketing) to sell our products
  • Engage in direct marketing and sales
  • Encourage the use of Word of mouth marketing (referrals)

11. Publicity and Advertising Strategy

Despite the fact that our direct sales company is well located, we will still go ahead to intensify publicity for the business. We are going to explore all available means to promote our business.

Fred Nelson® Direct Sales Company, LLC has a long – term plan of selling our products in various locations all around Nevada and key cities in the United States and Canada which is why we will deliberately build our brand to be well accepted in Augusta before venturing out.

As a matter of fact, our publicity and advertising strategy is not solely for winning customers over but to effectively communicate our brand. Here are the platforms we intend leveraging on to promote and advertise Fred Nelson® Direct Sales Company, LLC;

  • Place adverts on community based newspapers, radio stations and TV stations.
  • Encourage the use of word of mouth publicity from our loyal customers
  • Leverage on the internet and social media platforms like; YouTube, Instagram, Facebook ,Twitter, LinkedIn, Snap chat, Badoo, Google+  and other platforms to promote our business.
  • Ensure that our we position our banners and billboards in strategic positions all around Carson City – Nevada
  • Distribute our fliers and handbills in target areas in and around our neighborhood
  • Contact corporate organizations, households, landlord associations and schools by calling them up and informing them of Fred Nelson® Direct Sales Company, LLC and the products we sell
  • Advertise our direct sales business in our official website and employ strategies that will help us pull traffic to the site
  • Brand all our official cars and trucks and ensure that all our staff members and management staff wears our branded shirt or cap at regular intervals.

12. Our Pricing Strategy

Aside from quality, pricing is one of the key factors that give leverage to retailing business such as direct sales business, it is normal for consumers to purchase goods from direct sales companies that they can goods at cheaper price which is why big players in the direct selling companies industry will attract loads of corporate and individual clients.

We know we don’t have the capacity to compete with bigger direct sales companies when it comes to retailing goods at rock bottom prices, but we will ensure that the prices and quality of all the products that we sell are competitive with what is obtainable amongst direct sales companies within our level.

  • Payment Options

The payment policy adopted by Fred Nelson® Direct Sales Company, LLC is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.

Here are the payment options that Fred Nelson® Direct Sales Company, LLC will make available to her clients;

  • Payment via bank transfer
  • Payment with cash
  • Payment via credit cards / Point of Sale Machines (POS Machines)
  • Payment via online bank transfer
  • Payment via check
  • Payment via mobile money transfer
  • Payment via bank draft

In view of the above, we have chosen banking platforms that will enable our client make payment for farm produces purchase without any stress on their part. Our bank account numbers will be made available on our website and promotional materials to clients who may want to deposit cash or make online transfer for the purchase of our products.

13. Startup Expenditure (Budget)

In setting up any business, the amount or cost will depend on the approach and scale you want to undertake. If you intend to go big by renting / leasing a big facility, then you would need a good amount of capital as you would need to ensure that your employees are well taken care of, and that your facility is conducive enough for workers to be creative and productive.

This means that the start-up can either be low or high depending on your goals, vision and aspirations for your business. As for the detailed cost analysis for starting a direct sales company; it might differ in other countries due to the value of their money.

This is the key areas where we will spend our start – up capital;

  • The total fee for registering the business in the Unites States of America – $750.
  • Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other software) – $3,300.
  • Marketing promotion expenses for the grand opening of Victory Express Tire Shop®, Inc. in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
  • The cost for hiring Business Consultant – $2,500.
  • Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $2,400.
  • The cost for payment of rent for 12 month at $1.76 per square feet in the total amount of $105,600.
  • The cost for warehouse remodeling (construction of racks and shelves) – $20,000.
  • Other start-up expenses including stationery ( $500 ) and phone and utility deposits ( $2,500 ).
  • Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $60,000
  • The cost for Start-up inventory (stocking with a wide range of home and family care products, wellness and personal care products, clothing and accessories, leisure and educational products, and other products and services from different brands) – $250,000
  • The cost for counter area equipment – $9,500
  • The cost for store equipment (cash register, security, ventilation, signage) – $13,750
  • The cost of purchase and installation of CCTVs: $10,000
  • The cost for the purchase of office furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, tables and chairs et al): $4,000.
  • The cost of launching a Website: $600
  • The cost for our opening party: $7,000
  • Miscellaneous: $10,000

We would need an estimate of $500,000 to successfully set up our direct sales company in Carson City – Nevada. Please note that this amount includes the salaries of all the staff for the first month of operation.

Generating Funds / Startup Capital for Fred Nelson® Direct Sales Company, LLC

Fred Nelson® Direct Sales Company, LLC is a private registered business that is solely owned and financed by Fred Nelson and his immediate family members. They do not intend to welcome any external business partner which is why he has decided to restrict the sourcing of the start – up capital to 3 major sources.

These are the areas we intend generating our start – up capital;

  • Generate part of the start – up capital from personal savings
  • Source for soft loans from family members and friends
  • Apply for loan from my Bank

N.B: We have been able to generate about $250,000 ( Personal savings $200,000 and soft loan from family members $50,000 ) and we are at the final stages of obtaining a loan facility of $250,000 from our bank. All the papers and document have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.

14. Sustainability and Expansion Strategy

The future of a business lies in the numbers of loyal customers that they have the capacity and competence of the employees, their investment strategy and the business structure. If all of these factors are missing from a business (company), then it won’t be too long before the business close shop.

One of our major goals of starting Fred Nelson® Direct Sales Company, LLC is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running.

We know that one of the ways of gaining approval and winning customers over is to retail our wide range of quality goods from top manufacturing brands a little bit cheaper than what is obtainable in the market and we are well prepared to survive on lower profit margin for a while.

Fred Nelson® Direct Sales Company, LLC will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and re – training of our workforce is at the top burner.

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of six years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List / Milestone

  • Business Name Availability Check: Completed
  • Business Registration: Completed
  • Opening of Corporate Bank Accounts: Completed
  • Securing Point of Sales (POS) Machines: Completed
  • Opening Mobile Money Accounts: Completed
  • Opening Online Payment Platforms: Completed
  • Application and Obtaining Tax Payer’s ID: In Progress
  • Application for business license and permit: Completed
  • Purchase of Insurance for the Business: Completed
  • Leasing of warehouse facility and remodeling the facility: In Progress
  • Conducting Feasibility Studies: Completed
  • Generating capital from family members: Completed
  • Applications for Loan from the bank: In Progress
  • Writing of Business Plan: Completed
  • Drafting of Employee’s Handbook: Completed
  • Drafting of Contract Documents and other relevant Legal Documents: In Progress
  • Design of The Company’s Logo: Completed
  • Graphic Designs and Printing of Packaging Marketing / Promotional Materials: In Progress
  • Recruitment of employees: In Progress
  • Purchase of the needed furniture, racks, shelves, computers, electronic appliances, office appliances and CCTV: In progress
  • Creating Official Website for the Company: In Progress
  • Creating Awareness for the business both online and around the community: In Progress
  • Health and Safety and Fire Safety Arrangement (License): Secured
  • Opening party / launching party planning: In Progress
  • Compilation of our list of products that we will sell: Completed
  • Establishing business relationship with vendors – manufacturers and suppliers of home and family care products, wellness and personal care products, clothing and accessories, leisure and educational products, and other products et al: In Progress

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If you are thinking about going into business, it is imperative that you watch this video first! it will take you by the hand and walk you through each and every phase of starting a business. It features all the essential aspects you must consider BEFORE you start a Direct Selling business. This will allow you to predict problems before they happen and keep you from losing your shirt on dog business ideas. Ignore it at your own peril!

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Radio follows the listener everywhere, in the home and on the highway. It is characterized by immediacy in scheduling, lower rates compared with other media, and little or no production costs.

Basic rates depend on the number of commercials contracted for, the time periods specified, and whether the station broadcasts on AM or FM frequencies. Some stations offer both Am and FM coverage. Usually FM broadcasting is more localized and offers wider tonal range, due to highly technical reasons.

In negotiating a contract, some stations may propose a "barter" arrangement in which part of the cost, sometimes as much as 50 percent, may be paid in merchandise. This is especially true where the retailer can provide material needed by the station in its own operation. One station offered such a deal to an office supply retailer. Another example concerned a printing establishment.

It is good business practice to:

Be sure that the commercials are broadcast at the times specified;

Instruct the station when to change the message if the "copy" refers to specific dates or occasions.

Ask of invoices in duplicate or triplicate when actual copies are required by cooperative arrangements with suppliers.

Direct Mail

An accurate, up-to-date mailing list plays the most important roll in direct mail advertising. Stores with charge accounts have a valuable list at their disposal, waiting to be used.

Direct mail has many purposes. It can be aimed at old customers, inviting them to pre-sale occasions. It can be focused on prospective customers for individual products. Or it can be used to create "goodwill."

Smaller stores, or stores without credit accounts, can build up their own lists from publications or directories.

Consult the post office in advance regarding fees, permits, and other requirements for direct mailings.

Benefit from Cooperative Retail Advertising Policies of Suppliers

Many manufacturers and wholesalers state that a significant part of the reserves they set up are for cooperative advertising are not used by their retailers. This is surprising because cooperative advertising results in substantially lower costs for the retailer.

For their own legal protection and to insure the greatest return from their investment, manufacturers set up specific requirements to be observed in cooperative advertising. The retailer should consult each vendor about the requirements which must be met to qualify. The retailer must also be aware of the procedures to follow to apply for and receive payments. Some vendors relate cooperative dollars to the amount of the retailer's business. Others do so on a percentage basis. So, you must be aware of how many cooperative dollars you have to spend. The amount and rules for payment of cooperative dollars are at the discretion of the vendor.

"Goodwill" Advertising

Every retailer receives requests and solicitations for advertising by all types of organizations including social groups, schools, churches, and fraternal societies. Often, friends and relatives make these requests. From the standpoint of maintaining good public relations, the retailer is frequently reluctant to turn them down. The cost of these donation should not be charged to advertising but to publicity or to "contributions" so that the advertising budget is not distorted.

Use Promotional Ideas in Your Advertising

Retailers featuring products without the benefit of low prices, novelty, or new features have found promotional techniques an excellent basis for their advertising. Action is the keynote for sales promotion ; however, merchandising ideas are the necessary prelude to action. If you coordinate promotion with advertising and personal selling, you can usually increase store traffic and thus produce good sales results.

The first requirement is a sound selling idea such as a "special sales" event, price discounts, a liberal credit plan, a contest, or a premium offer. There are many sources for promotional campaign suggestion, including trade journals, newsletters, and various books on the subject.

Once you have planned and scheduled the campaign, promote it through the use of newspaper and radio advertising, window and store displays, coupons, and literature. Promotions are especially necessary for retailers starting a new business.

Pack Your Ads with Selling Punch

Here are some tips you can use when you begin to work up your advertisements. When properly followed they will help inject selling punch into your advertising.

Make your ads easy to recognize. Give your copy and layout a consistent personality and style.

Use a simple layout. Your layout should lead the reader's eye easily through the message from the art and headline to the copy and price to the signature.

Use dominant illustrations. Show the featured merchandise in dominant illustrations. Whenever possible, show the product in use.

Show the benefit to the reader. Prospective customers want to know "what's in it for me." But, do not try to pack the ad with reasons to buy - give the customers one primary reason, then back it up with one or two secondary reasons.

Feature the "right" item. Select an item that is wanted, timely, stocked in depth, and typical of your store. Specify branded merchandise and take advantage of advertising allowances and cooperative advertising whenever you can.

State a price or range of prices. Don't be afraid to quote high prices. If the price is low, support it with statements which create belief, such as clearance or special purchase.

Include store name and address. Double check every ad to make sure it contains store name, address, telephone number, and store hours.

The Only Purpose Is To Sell

If you try to be clever, humorous or subtle in your advertising, you handicap its objective which is to help you sell your products. The elements of good copy are sometimes summarized in the term: AIDCA. This is, attract Attention, develop Interest, Describe the product, Convince the reader, and get Action.

For effective copy-writing, make each word count. Avoid unnecessary words. Keep sentences short. Put action in your words. Use terms your readers will understand. Don't use introduction, get right to the point of your message. Make use of imaginative ideas, variety, or colorful references only when they do not interfere with or slow your sales message.

Prior to opening your Company you must decide upon the general price Amount you expect to maintain. Are you going to cater to individuals buying in the large, medium, or low price range? Your choice of location, look of your establishment, quality of goods handled, and services to be offered will depend on the customers you would like to attract, and so will your prices. After establishing this overall price level, you are ready to cost Individual items. Generally, the price of an item has to cover the cost of the item, the other costs, and a profit. Therefore, you'll need to markup the thing by a specific sum to cover costs and make a profit. In a business that sells few things, total costs can easily be allocated to each item and a markup immediately ascertained. With many different items, allocating costs and determining markup might require an accountant. In retail operations, goods tend to be marked up by 50 to 100 percent or more simply to make a 5 percent to 10% gain! Let us work through a markup illustration. Suppose your organization sells 1 product, Merchandise A. The supplier sells Product A to you for $5.00 each. You and your accountant determine the costs entailed in selling Merchandise A are $4.00 per item, and you also desire a $1 per item profit. What is your markup? Well, the selling price is: $5 and $4 and $1 or $10; the markup consequently is 5. As a percentage, it's 100%. So you need to markup Merchandise A by 100% to make a 10% gain! Many small business managers are interested in knowing what Industry markup standards are for a variety of products. Wholesalers, distributors, trade institutions and company research firms publish a huge variety of such ratios and company statistics. They are useful as recommendations. Another ratio (in addition to the markup percentage) important to small businesses is your Gross Margin Percentage. The GMP is similar to your markup percent but whereas markup Refers to the percentage above the price to you of each item that you must set the selling cost in order to cover the other costs and make profits, the GMP shows the relationship between sales revenues minus the cost of the item, which is your gross margin, and your sales revenues. What the GMP is telling you is that your markup bears a certain relationship to your sales revenues. The markup percentage along with the GMP are essentially the same formula, together with the markup speaking to individual item pricing and GMP referring to this item costs times the amount of items sold (volume). Maybe an illustration will clarify the purpose. Your firm sells Product Z. It costs you $.70 each and you choose to sell it for $1 per cent to cover costs and gain. Your markup is 43%. Now let up say you sold 10,000 Merchandise Z's Last month hence producing $10,000 in earnings. Your cost to buy Product Z was $7000; your gross profit margin was $3,000 (earnings minus cost of goods sold). This is also your gross mark for the month's volume. Your GMP would be 30 percent. Both of these percentages utilize the same basic amounts, differing only in division. Both are used to establish a pricing method. And both are printed and can be utilized as guidelines for smaller businesses beginning out. Often managers determine what Gross Margin Percentage they will need to make a profit and simply go to a published Markup Table to discover the percent markup which correlates with that margin requirement. While this discussion of pricing may appear, in certain respects, to Be directed only to the pricing of retail product it can be applied to other kinds of companies as well. For solutions the markup must cover selling and administrative costs as well as the direct cost of performing a specific service. If you are producing a product, the costs of direct labour, materials and supplies, parts purchased from different issues, special equipment and tools, plant overhead, selling and administrative expenses have to be carefully estimated. To compute a cost per unit needs an estimate of the amount of components you intend to produce. Before your factory becomes too large it would be wise to consult a lawyer in a cost accounting system. Not all things are marked up by the typical markup. Luxury articles Will require more, staples . For example, increased sales volume from a lower-than-average markup on a specific item - a"loss leader" - may bring a higher gross profit unless the purchase price is reduced too much. Then the consequent increase in earnings will not raise the entire gross profit enough to compensate for the low cost. Sometimes you may wish to market a particular item or service in a lesser Markup in order to boost store traffic with the expectation of increasing sales of Regularly priced merchandise or generating a large number of new service contracts. Competitors' costs will also govern your prices. You Can't sell a Product if your competition is greatly underselling you. These and other Factors May make you vary your markup one of items and services. There is no magic Formula which will work on each product or each service all the time. But You ought to remember the overall average markup that you want to make a Profit.

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Free PDF Business Plan Templates and Samples

By Joe Weller | September 9, 2020

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We’ve gathered the most useful collection of business plan PDF templates and samples, including options for organizations of any size and type.

On this page, you’ll find free PDF templates for a simple business plan , small business plan , startup business plan , and more.

Simple Business Plan PDF Templates

These simple business plan PDF templates are ready to use and customizable to fit the needs of any organization.

Simple Business Plan Template PDF

Simple Business Plan Template

This template contains a traditional business plan layout to help you map out each aspect, from a company overview to sales projections and a marketing strategy. This template includes a table of contents, as well as space for financing details that startups looking for funding may need to provide. 

Download Simple Business Plan Template - PDF

Lean Business Plan Template PDF

Lean Business Plan Template

This scannable business plan template allows you to easily identify the most important elements of your plan. Use this template to outline key details pertaining to your business and industry, product or service offerings, target customer segments (and channels to reach them), and to identify sources of revenue. There is also space to include key performance metrics and a timeline of activities. 

Download Lean Business Plan Template - PDF

Simple 30-60-90 Day Business Plan Template PDF

Simple 30-60-90 Day Business Plan Template

This template is designed to help you develop and implement a 90-day business plan by breaking it down into manageable chunks of time. Use the space provided to detail your main goals and deliverables for each timeframe, and then add the steps necessary to achieve your objectives. Assign task ownership and enter deadlines to ensure your plan stays on track every step of the way.

Download Simple 30-60-90 Day Business Plan Template

PDF | Smartsheet

One-Page Business Plan PDF Templates

The following single page business plan templates are designed to help you download your key ideas on paper, and can be used to create a pitch document to gain buy-in from partners, investors, and stakeholders.

One-Page Business Plan Template PDF

direct selling business plan pdf

Use this one-page template to summarize each aspect of your business concept in a clear and concise manner. Define the who, what, why, and how of your idea, and use the space at the bottom to create a SWOT analysis (strengths, weaknesses, opportunities, and threats) for your business. 

Download One-Page Business Plan Template

If you’re looking for a specific type of analysis, check out our collection of SWOT templates .

One-Page Lean Business Plan PDF

One Page Lean Business Plan Template

This one-page business plan template employs the Lean management concept, and encourages you to focus on the key assumptions of your business idea. A Lean plan is not stagnant, so update it as goals and objectives change — the visual timeline at the bottom is ideal for detailing milestones. 

Download One-Page Lean Business Plan Template - PDF

One-Page 30-60-90 Day Business Plan Template

One Page 30-60-90 Day Business Plan Template

Use this business plan template to identify main goals and outline the necessary activities to achieve those goals in 30, 60, and 90-day increments. Easily customize this template to fit your needs while you track the status of each task and goal to keep your business plan on target. 

Download One-Page 30-60-90 Day Business Plan Template

For additional single page plans, including an example of a one-page business plan , visit " One-Page Business Plan Templates with a Quick How-To Guide ."

Small Business Plan PDF Templates

These business plan templates are useful for small businesses that want to map out a way to meet organizational objectives, including how to structure, operate, and expand their business.

Simple Small Business Plan Template PDF

Simple Small Business Plan Template

A small business can use this template to outline each critical component of a business plan. There is space to provide details about product or service offerings, target audience, customer reach strategy, competitive advantage, and more. Plus, there is space at the bottom of the document to include a SWOT analysis. Once complete, you can use the template as a basis to build out a more elaborate plan. 

Download Simple Small Business Plan Template

Fill-In-the-Blank Small Business Plan Template PDF

Simple Fill In The Blank Business Plan Template

This fill-in-the-blank template walks you through each section of a business plan. Build upon the fill-in-the-blank content provided in each section to add information about your company, business idea, market analysis, implementation plan, timeline of milestones, and much more.

Download Fill-In-the-Blank Small Business Plan Template - PDF

One-Page Small Business Plan Template PDF

One Page Business Plan For Small Business Template

Use this one-page template to create a scannable business plan that highlights the most essential parts of your organization’s strategy. Provide your business overview and management team details at the top, and then outline the target market, market size, competitive offerings, key objectives and success metrics, financial plan, and more.

Download One-Page Business Plan for Small Business - PDF

Startup Business Plan PDF Templates

Startups can use these business plan templates to check the feasibility of their idea, and articulate their vision to potential investors.

Startup Business Plan Template

Startup Business Plan Template

Use this business plan template to organize and prepare each essential component of your startup plan. Outline key details relevant to your concept and organization, including your mission and vision statement, product or services offered, pricing structure, marketing strategy, financial plan, and more.

‌Download Startup Business Plan Template

Sample 30-60-90 Day Business Plan for Startup

Sample 30-60-90 Day Business Plan for Startup

Startups can use this sample 30-60-90 day plan to establish main goals and deliverables spanning a 90-day period. Customize the sample goals, deliverables, and activities provided on this template according to the needs of your business. Then, assign task owners and set due dates to help ensure your 90-day plan stays on track.

‌Download Sample 30-60-90 Day Business Plan for Startup Template 

For additional resources to create your plan, visit “ Free Startup Business Plan Templates and Examples .”

Nonprofit Business Plan PDF Templates

Use these business plan PDF templates to outline your organization’s mission, your plan to make a positive impact in your community, and the steps you will take to achieve your nonprofit’s goals.

Nonprofit Business Plan Template PDF

Fill-in-the-Blank Nonprofit Business Plan Template

Use this customizable PDF template to develop a plan that details your organization’s purpose, objectives, and strategy. This template features a table of contents, with room to include your nonprofit’s mission and vision, key team and board members, program offerings, a market and industry analysis, promotional plan, financial plan, and more. This template also contains a visual timeline to display historic and future milestones.

Download Nonprofit Business Plan Template - PDF

One-Page Business Plan for Nonprofit Organization PDF 

One Page Business Plan for Nonprofit Organizations Template

This one-page plan serves as a good starting point for established and startup nonprofit organizations to jot down their fundamental goals and objectives. This template contains all the essential aspects of a business plan in a concise and scannable format, including the organizational overview, purpose, promotional plan, key objectives and success metrics, fundraising goals, and more.

Download One-Page Business Plan for Nonprofit Organization Template - PDF

Fill-In-the-Blank Business Plan PDF Templates

Use these fill-in-the-blank templates as a foundation for creating a comprehensive roadmap that aligns your business strategy with your marketing, sales, and financial goals.

Simple Fill-In-the-Blank Business Plan PDF

The fill-in-the-blank template contains all the vital parts of a business plan, with sample content that you can customize to fit your needs. There is room to include an executive summary, business description, market analysis, marketing plan, operations plan, financial statements, and more. 

Download Simple Fill-In-the-Blank Business Plan Template - PDF

Lean Fill-In-the-Blank Business Plan PDF

Fill-in-the-Blank Lean  Business Plan Template

This business plan is designed with a Lean approach that encourages you to clarify and communicate your business idea in a clear and concise manner. This single page fill-in-the-blank template includes space to provide details about your management team, the problem you're solving, the solution, target customers, cost structure, and revenue streams. Use the timeline at the bottom to produce a visual illustration of key milestones. 

Download Fill-In-the-Blank Lean Business Plan Template - PDF

For additional resources, take a look at " Free Fill-In-the-Blank Business Plan Templates ."

Sample Business Plan PDF Templates

These sample business plan PDF templates can help you to develop an organized, thorough, and professional business plan.

Business Plan Sample 

Basic Business Plan Sample

This business plan example demonstrates a plan for a fictional food truck company. The sample includes all of the elements in a traditional business plan, which makes it a useful starting point for developing a plan specific to your business needs.

Download Basic Business Plan Sample - PDF

Sample Business Plan Outline Template

Simple Business Plan Outline Template

Use this sample outline as a starting point for your business plan. Shorten or expand the outline depending on your organization’s needs, and use it to develop a table of contents for your finalized plan.

Download Sample Business Plan Outline Template - PDF

Sample Business Financial Plan Template

Business Financial Plan Template

Use this sample template to develop the financial portion of your business plan. The template provides space to include a financial overview, key assumptions, financial indicators, and business ratios. Complete the break-even analysis and add your financial statements to help prove the viability of your organization’s business plan.

Download Business Financial Plan Template

PDF  | Smartsheet

For more free, downloadable templates for all aspects of your business, check out “ Free Business Templates for Organizations of All Sizes .”

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Network Marketing Business Plan Template

Written by Dave Lavinsky

mlm business plan

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.

Executive Summary

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.

Company Overview

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.

Industry Analysis

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.

Customer Analysis

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.

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Competitive Analysis

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.

Marketing 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

Operations Plan

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.

Management Team

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.

Financial Plan

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.

Income Statement

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

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.

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On the Benefits of Direct Selling

By: Robert A. Peterson

Direct selling isn't just an industry or a business model-it's people. Direct selling is successful today because of the people who have been able to build successful businesses from the ground up or…

  • Length: 19 page(s)
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Direct selling isn't just an industry or a business model-it's people. Direct selling is successful today because of the people who have been able to build successful businesses from the ground up or by representing a company's product. Entrepreneurs who use a direct selling approach utilize independent salespeople to market and sell their products or services directly to the consumer. These direct selling distributors are offered a low-risk, low-cost path to micro-entrepreneurship. Framed within the context of entrepreneurship and an overview of the long-term sustainability of the direct selling business model, this book dives into three main issues associated with direct selling: compensation, ethics and compliance, and global reach. Written for practitioners, academics, members of the press, policy makers, and students, this text offers research and knowledge about the economic and social benefits of direct selling and provides detail and clarity on key issues related to direct selling as a sustainable business model. Chapter 6 explores the financial and nonfinancial benefits of direct selling. Three female direct sellers share their stories regarding their experience. Two empirical surveys-their design and results-are discussed at length. The first survey looks at why people start working in the gig economy and emphasizes the expected and actual financial rewards of gig workers who are direct sellers. The second survey explores why people become direct sellers specifically and the nonfinancial benefits they gain from their direct selling experience. Typical reasons respondents gave for becoming direct sellers included earning extra money, improving personal lifestyles, and being able to purchase products or services from the company at a discount. Direct sellers' expectations regarding how much money they would make were mostly realistic; the majority of respondents also believed their self-efficacy was improved through their direct selling experience.

Learning Objectives

Describe several financial and nonfinancial benefits of being a direct seller.

Understand why people choose to become gig workers and direct sellers.

Sep 14, 2021

Discipline:

Business Expert Press

BEP617-PDF-ENG

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direct selling business plan pdf

Consultants, Independent Beauty Reps, Distributors, Stylists, Independent Business Owners: We Are Direct Selling

Direct selling lets me balance work with family time, direct selling gives me the opportunity to develop my own business plan and determine how to best serve my customers, direct selling lets me work at my own pace from my own place, direct selling helps me build confidence in myself and my business, direct selling makes us part-time students and full-time entrepreneurs, directselling.org is an educational resource for members of the independent salesforce affiliated with direct selling association member companies., about direct selling.

For more than a century, the Direct Selling Association (DSA) has served as the national trade association for companies that offer entrepreneurial opportunities to independent sellers to market and sell products and services, typically outside of a fixed retail establishment. In 2020, direct selling took place across the United States, generating $40.1 billion in retail sales and 7.7 million entrepreneurs in the U.S. sold products or services through the direct selling channel, providing a personalized buying experience for 41.6 million preferred customers and discount buyers.

2020IndustryOverview

Click Here to Download as PDF

DSA is committed to ethical business practices and consumer protection. The cornerstone of that commitment is the Code of Ethics . Every DSA member company pledges to abide by the Code’s standards and procedures as a condition of admission to and continuing membership with the Association. The Code ensures that member companies do not make statements or promises that might mislead consumers or salespeople. The Code is enforced by an independent administrator who has authority that all companies agree to abide by.

DSA member companies and their independent salespeople must ensure product claims are documented and substantiated by competent and reliable evidence and earnings claims are clearly defined and documented with truthful and accurate evidence.

The best business is an ethical business. Our Code of Ethics Enhancements, effective January 1, 2016, aim to create the most successful experience for both direct sellers and consumers.

direct selling business plan pdf

Questions? Read the Frequently Asked Questions to better understand direct selling and the Direct Selling Association’s role in self-regulating the industry.   What types of products can be purchased through the direct sales channel? The direct selling product… Read More

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Direct Selling Business Model

Direct selling is a retail channel used by top global brands and smaller, entrepreneurial companies to market products and services to consumers. Companies market all types of goods and services, including jewelry, cookware, nutritionals, cosmetics, housewares, energy and insurance, and much more. The direct selling channel differs from broader retail in an important way. It isn’t only about getting great products and services into consumers’ hands. It’s also an avenue where entrepreneurial-minded Americans can work independently to build a business with low start-up and overhead costs. Direct selling consultants work on their own, but affiliate with a company that uses the channel, retaining the freedom to run a business on their own terms. Consultants forge strong personal relationships with prospective customers, primarily through face-to-face discussions and demonstrations. In this age of social networking, direct selling is a go-to market strategy that, for many companies and product lines, may be more effective than traditional advertising or securing premium shelf space. Millions of Americans from every state, congressional district and community in the United States choose to become involved in direct selling because they enjoy a company’s products or services and want to purchase them at a discount. Some decide to market these offerings to friends, family and others and earn commissions from their sales. The most successful consultants may decide to expand their business by building a network of direct sellers. Eighty-nine percent of direct sellers decide to work part-time, offering busy parents, caregivers, military spouses, veterans and others flexibility and work-life balance.  As advancements in technology create a new American economy whose foundation is built upon entrepreneurial spirit and independent work, it’s important to remember that direct selling is one of the oldest ways millions of Americans have chosen to work independently – long before the advent of the Internet. Direct selling has a long history of both substantially contributing to the economy and supporting the millions of Americans involved.

An Independent Salesforce

Direct selling is unique among retail channels because of the way in which products and services are marketed to customers. Instead of relying on traditional retail outlets or online marketplaces, direct selling companies maintain a salesforce of millions of independent workers that added $36 billion to the U.S. economy in 2015. Real estate, insurance, travel and technology companies and well-known brands also rely on independent workers to deliver products and services to consumers. Independent work adds value to those who choose to pursue it, to the economy and to society.

Independent direct selling consultants earn commissions on sales but work for themselves. They set their own hours, create their own marketing plans, determine whether to build a sales team and how to mentor those within it and how to serve their customers.

Millions of independent direct sellers see advantages in working for themselves. The most obvious is the chance to build and grow their own business and run it how they see fit. The freedom and flexibility to set their own working hours draws all types of people to direct selling, including parents with young children, students, caregivers, retirees, military spouses and many more.

Start-up costs for most direct selling companies are a few hundred dollars or less because direct selling isn’t reliant on overhead like real estate, facilities and equipment or traditional advertising that can cost tens- or even hundreds of thousands of dollars.

© 2013 Direct Selling Association . All Rights Reserved. This copyrighted content may not be disseminated or reproduced in any form without express written consent and without full attribution.

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Direct selling

Last updated: 14 November, 2023

What is direct selling?

Types of direct selling, single-level direct sales, host or party-plan sales.

  • Multi-level marketing

Tips and pieces of advice

Advantages and disadvantages of direct sales, checkout our sales pipeline templates freebies.

Direct selling can be an effective way to build a flexible, low-cost business. It allows you to reduce advertising costs, avoid overhead expenses, and build long-lasting customer relationships.

Direct selling is the selling of products in a non-retail setting, for example, at home, online, or other venues that are not a store. It eliminates middlemen who are involved in distribution, such as wholesalers and regional distribution centers. Instead, products are sent directly from the manufacturer to the sales company, then to the rep or distributor, and finally to the consumer. 

Products sold via direct sales are not typically found in traditional retail locations. This means that finding a distributor or rep is the only way to buy them.  

Direct selling is usually associated with party-plan and network marketing businesses. But they aren’t the only ones using direct sales. Many B2B companies use direct selling to target and sell to their end customers. For instance, many businesses that sell office supplies will send their reps directly into the stores that can use their services.

It’s important to note that direct selling doesn’t equal direct marketing . In the first case, individual distributors or reps reach out to customers directly. Meanwhile, in the second case, a company markets directly to clients. Some direct marketing examples include emails, flyers, promotional letters, outdoor advertising, ads, phone calls, websites, and others.

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Sometimes, these methods of direct selling are used in combination. They are not mutually exclusive.  

This type of direct selling is usually done face-to-face, e.g., through door-to-door or one-on-one presentations. Still, it can also take place online. As a result, salespeople earn their income from commission sales and occasional bonuses from the company they get their products from. They do not recruit other sales reps to receive more income. 

This type of sales takes place in a group setting. The primary method of generating sales leads is by hosting a social event and offering products for sale. Salespeople then use the party-plan sales model as a source for future business by asking customers if they would like to host such selling parties, too. Think of Mary Kay as one of the classic direct selling examples, as they often host social events to sell goods and find recruits when they aren’t making one-on-one sales.

Multi-level marketing (MLM)

If you’re a multi-level business salesperson, your primary focus is on recruiting members, not the actual product itself. What makes MLM different from other types of direct selling is that income earned through it is based on sales commissions and the sales made by other business partners recruited into the company. 

MLMs are popular with people who want to work from home, but they can be risky to participate in due to hefty upfront fees, difficult-to-meet quotas, and pay dependent on one’s recruits. Most MLMs are generally not looked upon as a good thing. The examples of such direct sales companies are Scentsy, Mary Kay, LuLaRoe, Arbonne, and many others. They also use the party-plan model, but to recruit new salespeople while selling products.

How network marketing works

If you want to get into direct sales, here are some recommendations to follow:

  • Focus on building relationships first, not making sales. Your first priority should be getting your clients to give you their attention and time. Establish a rapport and determine their pain points and needs so that you can offer a solution. Always follow-up on new prospects quickly to build new relationships.
  • Keep consistent and detailed customer records . A thorough customer database allows building and tracking your networks, communicating periodically with clients, and distributing different marketing materials, such as product updates or email newsletters. 
  • Be passionate and knowledgeable about your products. Salespeople who have confidence in their products and their ability to meet clients’ needs sell more.
  • Build and maintain your networks. Your network marketing strategies should be the core of your direct selling business. It’s important to have mutually beneficial relationships with your colleagues, communicate with them, and learn their selling tips. 
  • Organize your sales environment. Every detail matters, so plan your presentation space and product display thoroughly, as well as make sure you arrive early. Maintain eye contact with your customers and consider ways to remove all possible distractions in the room. 
  • Improve your sales skills. Your conversation and listening skills can help you build long-lasting customer relationships and grow a successful business.

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  • You don’t need to have an extensive team supporting you to begin direct selling. All you need is one person to create marketing materials to reach out to potential customers.
  • Without middlemen, you control your image and message.
  • You are in business for yourself, which means you can work from home.
  • There are no prerequisites, so anyone can go into direct sales, regardless of education or job history.
  • There are no set hours, leading you to be able to work when it’s convenient for you, which is a big reason so many stay-at-home mothers become direct sellers. 
  • If the seller has more incentive to recruit other sellers than to sell inventory, then it may be an illegal pyramid scheme.
  • Direct selling is built for outgoing individuals with several active networks who are willing to buy. The business is nonstop and requires significant output to expand the network and grow sales continually. This leaves the major downside as it limits networking for many people.
  • Direct selling is often uninvited. Many times the experience (whether over the phone , in person, or over social media) feels like you’re trying to talk the prospect into buying something that they don’t want.

Wrapping it up

There are a hundred more pros and cons to working in direct sales, but we would say those are some of the biggest ones. Either way, becoming a direct salesperson will require hard work, networking, and passion for what you are doing, plus research into whatever product you are trying to sell. Direct selling is business, and one has to run it like a business, or there will be little to no success.

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Best Ways to Succeed in Direct Selling Business Direct Selling

Profile image of MLM Yug

MLM (Multi-level marketing) is a form in Direct Selling. In MLM Business, interested people sell products or services from a company to the end customer. According to this model, each individual recruits and trains other representatives to begin his/her own business thereby earning a commission on their representative’s sales. Learn more about Direct Selling at http://bit.ly/32cFEsM.

Related Papers

yeasmin akter mukti

Multi-level marketing (MLM), also called pyramid selling, [1][2][3][4] network marketing, [3][5][6] and referral marketing, [7] is a controversial marketing strategy where an MLM company's revenue and profit is derived from a non-salaried workforce (called "salespeople", "distributors", "consultants", "promoters", "independent business owners", etc) selling the company's products/ services, while the earnings of this non-salaried workforce is derived from a pyramid-shaped commission system via two potential revenue streams which, although dictated according to each MLM company's specific "compensation plan", has two common features across all MLMs: firstly, from commissions on sales by participants directly to their own retail customers, and secondly, from commissions based on the sales by other distributors below them who they had recruited into the MLM (in the organizational hierarchy, known as their " down line " distributors). [8] MLM salespeople are, therefore, expected to sell products directly to end-user retail consumers by means of relationship referrals and word of mouth marketing. Most importantly, however, they are incentivized to recruit others to join the company as fellow salespeople so that these can become their down line distributors [5][9][10] .

direct selling business plan pdf

Shakhawat Hussain

Multi Level Marketing (MLM) is embracing more and more arenas today. Insurance business is just one among them. Selling Insurance policies, traditionally, is considered as a de-motivating and dragging job. Well, not until you discover the power of MLM to boost policy sales. With the competition heating up in the Insurance sector, companies are looking for innovative methods to spread the message and garner maximum business in shorter time. Many local MLM companies having quite large spread in the market are joining hands with leading insurance brands to promote their products along with an assortment of their own products. Insurance sector makes available long term debt for the economic development of the country. At the same time, the MLM route provides employment opportunities to lakhs of people and enhances their social status. The MLM members also get tremendous opportunity to develop themselves personally. This multiple role of MLM companies can be looked at as a social contribution and these companies or cooperatives are emerging as a development oriented social movement. This article studies the economic and social impact of MLM as a tool which can influence society through employment generation, mobilizing long term funds and improving quality of life of people. Statement of the problem Successful Personal selling based on referrals is the key to ensure regular expansion of customer base and building long term customer relations. A country like India offers immense potential to build well run marketing networks to promote consumer goods and appliances. Conventional marketing may become slow or stagnated over a period of time. Multi level marketing may be the turnaround tool in such situations. This paper presents a study on the proliferation of MLM in the Insurance Industry and analyzes the reasons for its apparent success so that further improvements and extension in to similar businesses can be considered. Methodology An in-depth study of the MLM concept is conducted using literature survey and interview with company personnel. Data on the business plan with respect to incentives or total earnings is analyzed in comparison with a traditional entrepreneurship business. Business model of a leading MLM company is analyzed as a Case study. Inferences are made on the unique features of the model and possibility of extending it to other industries.

Hasif Hasbollah

Multi-level marketing (MLM) also known as network marketing is one of the strategy in marketing which motivates its participants to produce income not only from sales they generate but also the sales from other “Downline” participants that they recruited. Current practice of people involves in this marketing strategy is selling, supplying and distributing services or products through many levels of independent participants. Amway, Shaklee, Avon, Nu skin and Mary Kay are practicing the MLM business strategy to expand their business around the globe. In Malaysia, consumers have been exposed to all these types of products including local product brand such as D’Herbs, Dnars Skin Care, Beauty Umaira, etc. Lately, there are overwhelmed of health and beauty product in the market as people and consumer are very concerned about health and beauty. Since, many companies exist in the market as well as the product types, they need to compete among each other and take aggressive actions in order...

NMSU Business Outlook

Michael R Hyman

Journal of Research in Interactive Marketing

WWW/Internet 2003, IADIS International Conference Proceedings

Bráulio Alturas

Direct selling is exhibiting substantial growth in sales revenues and number of salespeople involved. Also the acceptation of consumers is growing. During the last decade direct selling organizations (DSOs) are using the Internet more and more, either to communicate with the salespersons, either to promote the products and the business to the consumers.

Information Management and Business Review

elisabeth siahaan

Nowadays, MLM Company around the world are highly developed, and companies especially in Indonesia have been using a system of direct sales to the consumers. The career structure in MLM Company has been very much acknowledged. However, not all MLM distributors are able to achieve the line of succession. The purpose of this research is to analyse the main causes of career success in MLM Company. This study uses both quantitative and qualitative methods. The selection of samples is carried out using a snowball technique which retrieved as many as 198 distributors registered at the Multi-Level Marketing (MLM) Company in Medan, namely; PT. Herbalife Indonesia, PT. Orindo Ayu (Oriflame), PT. Sophi Martin Indonesia, PT. K-link, PT. Tupperware Indonesia and PT. Amway Indonesia. The result of the study finds that entrepreneurial competency and committment simultaneously have a significant influence to the career success of MLM distributors. Moreover, the study finds a partial relationship between the entrepreneurial commitment and motivation that has a significant effect on career success, while the entrepreneurial competency does not partially influence the success of career significantly. The results also show that entrepreneurial motivation is a moderating variable that is able to strengthen the influence of the entrepreneurial commitment to career success, as well as between the entrepreneurial competency and career success.

International Journal Of Management and Applied Research

International Res Jour Managt Socio Human

Direct selling industry in India is one of the fastest growing non-store retail formats. Various store and non-store retail formats have evolved to cater to this growing market and direct selling is one such non-store retail format. The growing Indian market has attracted a large number of Indian and foreign direct selling companies. By 2014-15 direct selling business in India would reach a size of Rs 10,843 crore on back of increased consumer spending. Multi-level marketing (MLM) also known as pyramid selling, network marketing, and referral marketing is a marketing strategy in which the sales force is compensated not only for sales they personally generate, but also for the sales of the other sales people that they recruit. This paper attempts to focus on key aspects of MLM and also what further researcher can add on to the existing literature.

Journal of Business Ethics

Claudia Gross

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COMMENTS

  1. PDF Direct sales, demonstrable benefits

    Flipping the focus To serve D2C customers the ways they want, sellers need to reexamine their capabilities. Without a retailer or other distribution partners between it and the customer, a company gets to own the customer relationship. That brings benefits but also confers responsibilities.

  2. Direct Sales Business Model

    DOWNLOAD HIGH-RESOLUTION PDF OF THE DIRECT SALES BUSINESS MODEL CANVAS Types of Direct Sales Business Models Single-level direct sales Performed one-on-one or door-to-door, via personal presentations using physical or online catalogs. Income is based on sales commissions and possible bonuses when reaching some goals.

  3. PDF Direct Selling-A global industry empowering millions in India

    Many direct selling companies rely on SMEs for manufacturing their products. In a lot of cases, the direct selling companies impart the manufacturing know-how, technology and processes to enable the SMEs to produce excellent products. Many direct selling companies also invest in providing the right equipment and machines to the SMEs for production.

  4. PDF Getting started on your business plan: A workbook

    1. Business overview Use this section to tell your audience what your business is about. What product(s) or service(s) does it offer? What problem are you attempting to solve and for whom? How will you solve it? What business model (such as brick-and-mortar retail or direct-to-consumer sales through an online store) will you use to make sales?

  5. Direct Sales Company Business Plan [Sample Template]

    1. Industry Overview Direct sales companies are involved in the retailing of a product or service from one person to another without having a fixed retail location. Players in this industry are referred to as independent consultants, distributors or sales representatives.

  6. PDF Direct Selling in the United States

    2021 Industry Overview Direct selling in the United States achieved record highs in 2021 for retail sales ($42.7 billion) and customers (44.6 million). By dividing the $42.7 billion in sales by the 7.3 million direct sellers in 2021, direct sellers averaged $5,849 in retail sales in 2021. Direct Retail Sales $42.7 billion $29.9 billion +6.4%

  7. Free Direct Selling Business Plan PDF Template

    This is a practical manual in a PDF format, that will walk you step by step through all the essential phases of starting your Direct Selling business. The book is packed with guides, worksheets and checklists. These strategies are absolutely crucial to your business' success yet are simple and easy to apply.

  8. Free PDF Business Plan Templates

    Lean Business Plan Template PDF. This scannable business plan template allows you to easily identify the most important elements of your plan. Use this template to outline key details pertaining to your business and industry, product or service offerings, target customer segments (and channels to reach them), and to identify sources of revenue.

  9. Network Marketing Business Plan Template [Updated 2024]

    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.

  10. On the Benefits of Direct Selling

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  11. Direct Selling For Dummies Cheat Sheet

    There are three main types of direct sales models: social selling, network marketing, and affiliate/influencer, and each finds its niche in the industry. Being successful means setting and meeting goals. Doing so keeps you on your toes and engaged in your business. Once you get going in your business, there are lots of hard-earned tips and ...

  12. Direct Selling

    In 2020, direct selling took place across the United States, generating $40.1 billion in retail sales and 7.7 million entrepreneurs in the U.S. sold products or services through the direct selling channel, providing a personalized buying experience for 41.6 million preferred customers and discount buyers. Click Here to Download as PDF

  13. What is Direct Selling

    Direct selling is a retail channel used by top global brands and smaller, entrepreneurial companies to market products and services to consumers. Companies market all types of goods and services, including jewelry, cookware, nutritionals, cosmetics, housewares, energy and insurance, and much more. The direct selling channel differs from broader ...

  14. [PDF] What Is Direct Selling?—Definition, Perspectives, and Research

    PDF 4 Excerpts Conceptualizing e-selling P. Parvinen Olli Tiainen J. Salo Essi Pöyry Hedon Blakaj Business, Computer Science ICEC '11 2011 TLDR The article discovers 16 different interactivity cues that do not fit the traditional concepts of e-commerce and e-marketing, including value creation-orientation and serving hedonism. 1 1 Excerpt

  15. Business Guidance Concerning Multi-Level Marketing

    Direct selling is a blanket term that encompasses a variety of business forms premised on person-to-person selling in locations other than a retail establishment, such as social media platforms or the home of the salesperson or prospective customer. Multi-level marketing is one form of direct selling. Generally, a multi-level marketer (MLM ...

  16. (PDF) Direct Selling: a Marketing Strategy to Shorten Distances between

    Direct sales became in recent years a diversification strategy increasingly used by farms to answer the CAP reform, as well as to react to the continuous price squeeze. Direct sales is in fact a ...

  17. What is Direct Selling: Definition, examples, and tips

    Direct selling is usually associated with party-plan and network marketing businesses. But they aren't the only ones using direct sales. Many B2B companies use direct selling to target and sell to their end customers. For instance, many businesses that sell office supplies will send their reps directly into the stores that can use their services.

  18. PDF HOW TO WRITE A BUSINESS PLAN

    Start with a cogent and concise one sentence statement of the business idea. A sentence that is so clear and appealing that the reader can immediately visualise or 'see' the business. You can then go on to describe: The market at which you are aiming. The specific benefits offered by your product or service.

  19. (PDF) Direct Selling: Understanding Its Building Blocks And Current

    PDF | Direct Selling is one of the emerging concepts of marketing in India. ... Data on the business plan with respect to incentives or total earnings is analyzed in comparison with a traditional ...

  20. (PDF) Direct Selling A Controversial Business Model: Recent Development

    Abstract. Direct selling is one of the earliest distribution models that is currently used in the modern commercial world. Direct selling started as a business model and subsequently evolve to ...

  21. 8+ SAMPLE Direct Marketing Plan in PDF

    Telemarketing, events, points of sale, and postal mail are examples of offline approaches. Research shows that your marketing budget should be calculated as a percentage of your income. A general rule of thumb is that B2B businesses should allocate between 2% and 5% of their revenue to marketing.

  22. (PDF) Best Ways to Succeed in Direct Selling Business Direct Selling

    Multi-level marketing (MLM), also called pyramid selling, [1] [2] [3] [4] network marketing, [3] [5] [6] and referral marketing, [7] is a controversial marketing strategy where an MLM company's revenue and profit is derived from a non-salaried workforce (called "salespeople", "distributors", "consultants", "promoters", "independent business owne...

  23. DIRECT SELLING.pdf

    5. BUSINESS MODELS / TYPES: Single-Level Sales: • A direct seller makes money by buying products from a parent organization and, selling them directly to customers • This type of direct selling is usually done face-to-face, e.g., through door-to-door or one-on-one presentations & it can also take place online. • Salespeople earn their income from commission sales and occasional bonuses ...