How To Start Network Marketing Business - Best 8 Steps to Start MLM Business

How to Start Network Marketing Business ?

Pavanan Ghosh

Since the idea of multi-level marketing (MLM) was first proposed, it has been increasingly popular. Even corporate titans like Donald Trump and Warren Buffett have been incredibly transparent about the scope and potential of MLM opportunities. More people are now considering and giving attention to the thought of how to start a network marketing business.

What are those special things that make the MLM business really attractive?

One of the major reasons that we can find out is that it’s a really perfect platform that combines the flexibilities of both business and the paycheck system of a conventional office job. Or in other words, it delivers the positive of both fields.

Well, we will discuss in detail here those things to be taken care of before starting an MLM business! But before, you should make a thorough research on how to choose the best MLM company, so that you can be a part of the opportunities provided by them.

Also reading about the reviews on various MLM companies will give you an added advantage in doing so!

And then follow the methods expressed below. Hope it will be really helpful for you guys out there!

Steps On How To Start Network Marketing / MLM Business

Step 1: Why Start an MLM business?

To be successful in any sphere, and especially in the business sector, one needs to have a clear insight into the scope and possibilities regarding his area. They should have a proper dream on why they are choosing or planning to enter the network marketing industry and must have the knowledge of each step that helps them to understand how to start network marketing

Is it mainly to have a status in society? Or do you want to make some good money from the field and lead a luxurious life with a huge house, some great cars, etc. ? You should have a clear dream for your life to go on perfectly!

Well, take a book and write it in bold letters about why you are selecting the network marketing field. After fixing your dream, you should really be committed and dedicated to acquiring the same.

MLM Company registration legal regulations

Most countries have different rules on registering an MLM company. In very few countries Pyramid schemes are legal.

But the majority of countries have strong provisions relating to MLM company registration to avoid the Pyramid scheme exercising companies registering under the facade of being an MLM.

Most of the legal regulations on the registering of MLM companies ensure that the registering company focuses on its sale rather than growing its distributor network. To ensure this there are rules that companies need to mandatorily follow. This includes rules such as the company should provide during registration details on their business, goods, and services, terms of return and exchange need to be properly specified. The states are also advised to closely monitor Direct selling companies consistently to avoid scams from happening again.

Step 2: Fix a Goal

Fix a Goal

Take each and every step with some really great care and precision, because every step will be acting as a foundation for your network marketing business. After fixing your goal to be achieved, the next thing to figure out is how are actually going to achieve the target?

One thing you can actually do is either consult with your upline sponsor or also make use of this guide and decide on your long term goals for a term, year or even monthly goals.

For instance, consider the case given below.

Long Term Goal – to earn One Lakh Rupees every month by coming year.

Yearly Goal – To make at least Rs. 50,000 this year.

Monthly Goal – To build your downline and train them.

Having a fixed goal will help you in staying focused all the time and ways to reach that goal.

Pro Tip : Write down your notes in some sticky note and fix it in a place where you can see it every day!

Step 3: Prepare a Perfect Action Plan

The next thing you should do after learning the tactics of how to start Network marketing / MLM business, is to put your plans into action. Prepare a well-structured calendar depending upon your goals and training. And remember to share those weekly or monthly tasks to be finished to your Downline members in a timely manner.

And note that as your team grows, so does your business! So give the necessary attention in building up your team.

How to determine if an MLM company would be successful?

We can foresee that a successful MLM company would have a product or service that has a real-world market. Those MLM companies that do not have any real product or service gradually perish by either being brought to close down by the concerned legal authority for being a Pyramid scheme or for other reasons.

We can determine that an MLM company would be successful in the future if it has well studied and implemented MLM plans that are genius in its strategy and implementation among its distributors who are spread far and wide in its network.

If an MLM company is hired or managed by reputed or popular personalities then such companies have a bigger chance of being trusted easily by their audience and have more chances of being successful in the future

Things to avoid to properly get registered as an MLM company

The following are stated as potential elements that lead to illegal market plans and should be avoided by a company registering as an MLM company.

  • Products that do not have a “real world” market.
  • Products that are sold at high costs.
  • Mandatory purchase of company products is required.
  • Plans that reslit in distributors stocking up on inventory.
  • A significant monetary investment is required.
  • Purchases of peripheral or additional items or services are mandatory
  • Company’s products are consumed entirely or almost entirely by distributors.
  • Plans in which distributors are left with large amounts of unsold products when their participation is cancelled.
  • Purchases made by distributors to further the marketing strategy rather than out of real want and need for the product.
  • Plans that wolid fail if participants do not purchase.
  • Plans which make no effort to emphasise retail sales to the litimate nonparticipant consumer.
  • Plans which require no meaningfli participation by distributors after becoming a distributor.
  • Plans in which fees are paid to distributors for headhunting.
  • Plans in which commissions are not based on actual Products which have “no real-world retail product sales.
  • Plans in which emphasis is on recruitment rather than the sale of a product.
  • Plans which contain elements of a lottery rewarding participants based on chance rather than on bona fide sales efforts.
  • Earnings misrepresentations or inflated earnings representations.

Pro Tip: Prepare a monthly calendar on the Tasks to be Executed by you and your team members.

Step 4: Execute Your Plan With Proper Attention

The successful people do not stop after planning, they proceed further by converting their plans into reality. It has been found that almost 80% of the people will give up their plans after the planning phase. And you should never do this. Be a champion and put in that additional effort required to convert your dreams into a reality! The various things that you can include in your monthly goals include:

  • Completing a minimum of sales every month.
  • To recruit new members.
  • And to train the existing and newly added members properly.

Always try to keep track of the above-mentioned things. And you can see the difference it brings in your business career.

Pro Tip: Always try to maintain the minimum sales required, generate new leads on a regular basis and train the newly added as well the old members in your downline.

Step 5: Make an Analysis of Your Actions Regularly

It is very important to make an analysis of the things you have done each week or at the end of that particular month. Have a glance at the things you have achieved, the chances you missed out and the things that can be improved.

Also, try to celebrate the small victories you have made with your team members, so that it all gives a positive boost to them in some form or the other. Preparing an analysis will help you in knowing how near are you in achieving your goal and will help you in creating a better action plan for the next month. Always research for new helpful tips that makes you and your teammates better understand how to start network marketing which will be result oriented.

Remember every small step moves a step nearer to your MLM success!

Pro Tip: In short success formula is a well-balanced combination of Dreams, Goals, Training, Plan, Actions, and Analysis!

Step 6: Choose the Best MLM Compensation Plan

Designing your MLM plan is the most important phase that will decide the fate of your MLM business. Deciding on a plan that would best benefit the company takes a good understanding that can foresee Product category, Service or product, Ratio of cost to the consumer, Corporate objectives, the ease with which sales can be made, whether there is room for incentives, and more.

If you are a layman in this field getting advice from an expert will give you a good insight into ow MLM plans to need to be developed and what factors will matter the most. Doing proper research into each plan will contribute very much to developing a successful MLM plan. The cost of developing each plan and how such a plan can benefit your distributors and at the same time benefit companies need to be budgeted and forecasted.

The Multi-Level Marketing plans are diverse and so is their compensation. MLM Calculator can be used for understanding how much compensation each MLM plan can earn in the future. There is a separate MLM calculator for each plan which will help to calculate how much compensation will accrue under each plan.MLM calculator removes human error, manual labor, and time that has to be Invested for calculating compensation under each plan. MLM calculators are free and can be easily accessed on MLM software websites.

Always be willing and prepared to make changes during the stage of development of your MLM plan and in its future.No MLM company can survive without being static to the changes in its business environment.

Be realistic in your planning and use all the tools and advice that are available all around you.

Pro Tip: Have a clear picture of the Compensation Plan to run your MLM business.

Step 7: Select a perfect Network Marketing Software

There is a lot of Network Marketing Software out there. The right Network Marketing Software makes the running of your network marketing business really smooth and easygoing. So make sure that the Network Marketing Software is efficient and perfect.

Pro Tip: Choose the best Network Marketingsoftware that has an array of really useful features.

Step 8: Promote Your MLM Business

After all the above said steps, it is very much crucial to Promote your MLM business properly. And remember, marketing plays a very important role in the present world for the success of your business.

Pro Tip: Marketing is what makes the bigger difference. Reach your target with some excellent marketing strategies.

Infographic Credit : Infinite MLM Software Blog


Here we have listed the top tips on How to Start Network Marketing Business of your own. Now the only thing you need to know is to begin to put down your efforts in achieving those goals.

You will begin to notice the changes it brings to your business, once you begin to practice the ideals.

Network marketing is a perfect opportunity for those dreams to have a regular and ever-increasing income and you being your own boss!

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