What is MLM Binary Plan?
29 Nov, 2023
What Are The Important Factors To Consider When Starting MLM Company In Malaysia
Starting a Multi-Level Marketing (MLM) company involves several important factors. Below is a list of key aspects for you to consider and should be aware of before starting the business:
1
Do you Understanding MLM Business Model?
Try to Gain a full understanding of how MLM business works, including its company structure, compensation plans, and legal considerations. MLM businesses primarily focus on personal direct sales and building a network of distributors.
2
Understand the Legal Compliance & Regulations
MLM companies are subject to specific laws and regulations govern by Malaysia government to prevent the business from operating as pyramid schemes. New comer is required to understand and comply with these laws and regulation.
3
What Is The Product or Services
Decide on the products or services your company will offer is extremely crucial. The product or services should be in demand, unique, and high quality to stand out in the competitive MLM market.
4
Conduct Details Market Research and Target Audience
Extensive market research to understand your target audience, their needs, and how your products or services can meet respective market and audience demand.
5
Compensation Plan Structure
Design a fair, attractive, and sustainable compensation plan for your distributors. The MLM compensation plan should incentivize based on sales and recruitment instead of Membership enrollment.
6
New Distributor Recruitment Strategy
Develop strategies for recruiting new distributors. This includes identifying your ideal target distributor and the best marketing channels for reaching potential recruits.
7
Distributor Training and Support Systems
Develop training programs and support systems for your distributors to help them succeed in selling your company products and recruiting new distributor.
8
Marketing Champaign and Sales Strategies
Customize marketing campaign and sales strategies to promote your products or services and the business opportunity to your company target audience.
9
MLM System Technology and Infrastructure
Invest in necessary technology, software and infrastructure, like a website and Distributor System, Sales system, social media integration in order to support your operations and distributors.
10
Consult With The Relevant Industries Experts
Consider consulting with legal experts, MLM business consultants, MLM Software Provider and MLM veterans to guide you through setting up and running your business effectively.
Remember, the reputation of MLM businesses can vary greatly, so it's crucial to operate ethically, transparently, and in a way that provides real value to both your customers and distributors.
