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How to Start a Direct Sales Company – Sample Business Plan Template

Do you want to start a direct sales company from scratch? Or you need a sample direct sales business plan template? If YES, then i advice you read on. Direct sales company also known as Multi Level Marketing or Networking Business is a business or company that sells products and also pay people to invite others to sell products for the company.

A Direct sales company does not directly pay their sales men or women salary or wages per say, they make them earn based on commission. The Direct sales industry is a billion dollar industry as people as making huge financial successes on direct sales commission from Multi Level Marketing companies.

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One reason why people like to join direct sales companies is because you don’t necessarily need a college degree or experience to work for a direct sales company. As long as you can convince people to buy products from you and also to get people join the network under you, you can make good money from the industry.

But you can take it a step further by starting your own direct sales company and grow it into a multi-million dollar company. This may sound impossible to achieve but I will lead you through the steps and provide you a direct sales company business plan for getting started.

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Starting a Direct Sales Company – Sample Business Plan Template

1. Choose a Line of Product

The main purpose of the direct sales business is to make sales and recruit other people to also make sales. So you need a product to sell. It is important you try to choose a product that you like and have sufficient knowledge of because it is easier to sell products you know and like.

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If you are good at making instant coffee and can tell the difference between a good coffee and bad coffee, you can choose coffee with some additional healthy ingredient added, as the product for your direct sales company. If you are good at weight loss, you can produce green tea and slimming tea or slimming belt as the product for your company.

2. Find Manufacturer or Wholesalers

After you have chosen a product for your company, it is time to look for a manufacturer who can manufacture the product to your exact specification in very large quantity or you can find a wholesaler that can supply you your required product at wholesale price.

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But you must make sure that you let your manufacturer know this thing is a long term project and you will need larger quantities of the products as the company grows. You can also get them to make a drop shipping deal; that is to supply to other countries on behalf of your company when on demand. You can look up manufacturers on sites like But you must try to certify your products with as many standard organizations as possible.

3. Register the Company

You have chosen a product for your direct sales company, and found manufacturers for the product. It is time to register your business to function as a company. Depending on the country you are starting the business; there are different requirements for the registration of company in different countries.

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Find out what the requirements are in your country and register the business as a company. Don’t register it as a Business Name or sole proprietorship company; make it a limited liability company or public limited company as you will need to include partners and shareholders in the company as you expand.

4. Structure Your Networking and Reward System

As a direct sales company or Multi Level Marketing company, you need to work out a structure for reward system for networking. Let it be motivating enough to motivate people to invite others into the company. It can look like this: when A registers with the company and invites B to register under him, he will be paid 20% of B’s earnings and if B get’s C to register under him, A makes 10% of C’s earning and so on.

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5. Host Your First Company’s Seminar

Everything is ready for your company to kick off, and it is time to hold your first company’s seminar or business meeting to recruit the first set of networking team for your business. To host the business meeting, you have to do the following;

  • Choose a Venue

You have to choose a venue for the meeting. The venue space should be big enough to contain many people, as you need as many people as possible to launch your networking company. Remember to go to the venue the day before the main event to ascertain that everything is in order for the event.

  • Send Out Invitations

Design larger number of invitation and share to as many people as possible. The invitation can be a flier that contains all the details of the program including date, time, venue, your company’s name and a hint of the agenda of the meeting. Remember to send out the I.V as early as you can to allow people clear up their agenda for that day. Invite your friends, relatives, phone and email contacts business colleagues and investors; encourage them to come with their own friends.

  • On the Day of the Event

On the day of the event, after the necessary introduction has been made, you must go straight to the agenda of the meeting and tell your guests the agenda for the meeting. Tell them about your company, the products your company offer, what they stand to gain as members of the company, and what it takes to become a member of the company. After that, you can share a registration bullet for people interested to join the company. You can also lecture on how to convince other people to join the company under them.

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6. Subsequent Meetings

After a successful first meeting, you can organize subsequent meetings; the aim of these meetings will be to motivate others with the success stories of people who are already making progress in the company and how they achieved their success. You can also bring guest speakers who are well known in the direct sales industry to talk to them on success strategies in the business.

I have taken you through on top 10 tips that will help you start out your own direct sales company and grow it to a multi million dollar company within a short space of time. It is time to take the first step and find your own footpath.