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How to Start MLM Business? A Complete Business Plan of Multi-Level Marketing (MLM)

Jul 20, 2021
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Multi-level marketing (MLM) is a method of selling where companies sell or distribute their products through non-salaried employees. MLM also known as direct selling, network selling and pyramid selling, and the adoption of the MLM business plan significantly rose in different domains. 

Every MLM company applies different rules to their business to reach their target audience. But the goal behind every MLM company is the same, which is building a larger group audience to establish business relationships with them and making a profit. 

Some of the widely celebrated MLM companies in India with a steady number of sales include Amway, Avon, Forever Living, and so many others to name. These companies have taken the Indian market by storm and boosted direct sales and provided thousands or lakhs of employment opportunities. 

Let’s read this post to learn more about multi-level marketing including what MLM is, different types of MLM plans, pros and cons of MLM business, what is the need for MLM software to start a business, the cost of MLM software development in India and so on. 

What is Multi-Level Marketing (MLM)?

MLM is an effective form of marketing which is also pronounced as network or chain marketing is used by companies to sell their products to customers. Rather than directly selling their products to the customers through online websites or traditional brick and mortar stores, these companies appoint sales executives to sell their products. 

These sales executives usually work from home and buy inventory from the manufacturing companies to sell it in their circle. They are not considered salaried employees instead they are independent business owners who receive money when they make sales.

The multi-level meant to refer to the ability of the sales executive to hire and train other sales executives to help them start their own business. As recruits make sales and hire other representatives, each person above them receives a certain commission. 

Pros & Cons of MLM Business

Just like other businesses, MLM business also has its own advantages and disadvantages. This business model has been the subject of criticism for many years and yet appreciated by many. So let’s scroll down to explore the pros and cons of starting an MLM business. 

What are the Pros of Multi-Level Marketing(MLM)?

The following are some of the most evident benefits of the Multi-level marketing (MLM) business. 

1. Easy Way of Starting a Business

MLM business allows individuals to work on a different business model with complete freedom and ease their way of starting their own business with very less or no investment. You can become a distributor and start earning, or you can let others join with you to expand your network.  For example, if you are from Wyoming, then you might be aware of the way to forming an LLC in Wyoming,which is quite easy and affordable to start your business.

2. Freedom to Work From Home

To become an MLM distributor, all you need is a computer with a steady internet connection. You can check your progress online, reach potential customers over call and convenience them to purchase your product. The freedom to work from home is the biggest advantage of the MLM business model.

3. Passive Income Growth

In the MLM business, you can earn as much as your efforts and work effectiveness worth. The income keeps adding further as you recruit new distributors or sell products online. 

4. Opportunity to Collaborate with Established Business

Sales executives can collaborate with the established business that gained acceptance by developing excellent products, solid labels, and industry-leading marketing techniques. By working with an established business, your chances of seeing success will significantly increase. 

5. Flexibility

MLM business model provides you with the opportunity to work at your convenience. It completely depends on you how much time you want to devote to the business, time could be as less as 20 minutes or could be as maximum as 20 hours. 

What are the Cons of Multi-Level Marketing (MLM)?

Multi-level marketing also has several disadvantages, below we will try to address a few of them. 

1. Fear of Being Exposed to Scams

There are hundreds or thousands of multi-level marketing companies available in the market and a huge number of them are associated with any kind of fraudulent activities. People are afraid of being exposed to such fraudulent companies, hence they prefer to stay away from MLM business. 

2. Slow Growth Rate

It takes time for MLM companies to see success in the market. It is a time-consuming process as you need to spend a lot of time making presentations and inspiring people to invest in your product. 

3. Low Income 

There is a myth associated with the MLM business that it is a scheme to become rich overnight. However, in reality, MLM businesses require a lot of patience and effort to feel the taste of success. 

Why is MLM Software Essential to Start a Business?

The need for MLM software to start a business is inevitable as it helps the MLM business to automate the process to achieve success. Bitcoin MLM software helps to achieve success by providing advantages such as accurate processing, faster transaction speed, customer efficiency and customer satisfaction. 

The first and biggest advantage of MLM software is that it can be incorporated with any organization involved in a multi-level marketing business. It is packed with the features that need to push start a business. Furthermore, the MLM software can be accessed from anywhere in the world. 

The MLM software is built to serve MLM companies to effectively manage their team of sales executives, down lines, commission policies, inventory and purchase decisions. These are the mainstream of any MLM business and having effective management of these things will lead you to success. 

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Nowadays, when people’s dependence on the internet extends to an unimaginable level. This time the need of having an MLM software reports growth in the demand. With the ease of MLM software, an MLM business can manage the estimation of demand and supply amidst the market.

These are just a few mainstreams of MLM software. You can build personalized MLM software with the aid of an MLM software development company like BR Softech to get exposure to several other benefits of MLM software. 

What is the Cost of MLM Software in India?


Just like other software, MLM software development is also accomplished in multiple stages. These stages play an essential role in determining the cost of developing MLM software. The key stages of MLM software development are as follows. 

1. Design

Design is the crucial stage in MLM software development. The development company develops the different versions of the UI intending to serve the clients with the functional and graphical expectations of the software. Out of these two, only one UI design is selected for MLM software. Therefore, it is the first stage where you need to plan MLM software development cost estimation effectively to avoid overspending. 

On average, the design stage of the MLM software contributes a 20% share in the total software development cost. 

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2. Development

A major part of the MLM software budget goes into development. On average, 50% of the development estimation ends up spent on the MLM software development stage as it demands a lot of time and effort. This development cost becomes higher when MLM software development needs to develop with the MLM compensation plans, third-party tools and payment gateway script. 

3. Testing

This is the stage that is devoted to quality assurance. At this stage, a team of MLM software developers thoroughly tests the MLM software to find out the potential bugs and take the necessary steps to resolve those bugs. Depending on the complexity of MLM software development, the cost of testing might vary. 

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4. Support

The basic job of MLM software is to connect the sales companies with their freelance sales executives. A well-built MLM software will work best most of the time but think about the worst time when your software stopped working due to any reason such as technical glitch, server issue or any other reason.

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At such times, having the aid of effective technical support will go a long way to provide the required support to get the software back to its normal working state. The support system will also add up in the MLM software development cost. 

The average cost of developing an MLM software in India would be somewhere around INR 65,000 to INR 1,20,000 or above. Hire a dedicated software developer to get hands-on knowledge of the actual cost of MLM software development. 

Multi-Level Marketing Plans to Watch Out in 2021

In multi-level marketing, there are several network marketing plans available to choose from, hence choosing a suitable and highly beneficial MLM plan is a tricky deal. That’s the reason why we brought a list of the top 10 multi-level marketing plans to watch out for in 2021

With BR Softech, the MLM software development company, you can align your MLM software with intelligently tuned features to overcome all challenges and lead your business to success. 


I am the admin of BR Softech PVT LTD - an Award-winning Mobile game development company. My thesis is to work with hard-bit and get the best Exposure. I have driven by the spirit of entrepreneurship and dream to build a billion-dollar-company.

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