6+ Network Marketing Business Plan Examples – PDF

Network marketing is one of the marketing methods that has made waves the past few years. Unfortunately, network marketing has also been on the wrong end of business scams and frauds. Nonetheless, network marketing continues to be a very effective tool to increase the visibility of business organizations not only to their customers but also to potential clients. You may also see importance of business plan.

A network marketing business plan will help you increase the effectiveness of your network marketing business as well as identify internal and external issues that prevent you from reaching the full potential of your networking business.

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Sample for Network Marketing Business Plan Example

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What Is Network Marketing?

Network marketing, also called as multilevel marketing or pyramid selling, is a business model that follows the massive recruitment of individuals in which the the said individuals cannot earn or be compensated if they are not able to recruit other people. The pyramid starts with person A recruiting person B and C. You may also see how to make a business plan.

The pyramid is formed (or goes lower) when person B recruits person B1 and person C recruits person C1. The cycle then continues until there is no one else to recruit anymore, that is when the organization will go bankrupt.

For clarification purposes, legitimate network marketing businesses rely on products and not on people. Legitimate networking companies use a combination of products and human resources to sell their brand, but products still take a front seat over anything else. Human resources are more utilized to recruit, sell products, and create strategies on how to sell them. The more they sell and the more they recruit, the more commission they receive. You may also like company plan examples.

Network marketing is just not about recruiting the next person you see on the street, but passing on the benefits of the products you are selling to them. The more the recruits see the benefits of your products, the easier it is for them to sell the products as well as recruit other people to join your network organization. You may also check out business plan outline with examples.

Luminex Sample Network Business Plan Example

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Simple Network Marketing Business Plan Example

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Tips in Creating a Network Marketing Business Plan

Creating a network marketing business plan, similar to other marketing business plans, is not difficult. You just need to incorporate the correct and detailed information and avoid the pitfalls of adding unnecessary data that provide nothing to your simple business plan. Here are some tips in creating a network marketing business plan:

1. Provide specific company information

Your network marketing business plan should always begin with your company information. Among the information you will be incorporating must include the company name, company address, company website and other online portfolio (social media pages), and the nature of your network business.

Some companies indicate all of these information in the cover page or heading of the business plan. These information are very basic, that is why they should be the ones seen first by the reader.

Don’t forget to include your company logo in the business plan as it adds a bit of visual aesthetics to the business plan.

2. Clarify organizational structure

Organizational structures in network marketing businesses can be quite confusing. You have the person on the highest peak of the pyramid (most of the time the CEO, business owner, managing director, etc.), then what comes after is a sea of individuals having no clear roles or position in the organization. You may also see how to create a business plan?

To help solve this dilemma, don’t place all your employees in one pyramid, forming an endless row of people that have no specific position in the company.

Rather, set a limit on the number of people that can be recruited in a pyramid. The process should focus on having a specific number of recruits in one pyramid, then the next set or number of recruits should be placed in the next pyramid. To keep employees motivated and productive in the lower levels of a pyramid, a manager or supervisor should be assigned. This should apply in all of the organization’s pyramid. You may also like implementation plan examples.

3. Focus on payment terms

The payment terms will determine how the employees will get paid. In a networking business, most of the employees are working in a part-time basis. Depending on the size of the organization, networking companies usually only pay for the salaries of full-time admin and accounting personnel. Every person working in the pyramid will only get paid once he sells a product or recruits another person. You may also check out annual plan examples.

Payment terms in a networking business is important as most employees only get compensated once a sale or recruitment has been made.

Make sure the payment terms are flexible and will not only focus more on the individuals on the higher levels of the pyramid but on the lower levels as well.

4. Also focus on marketing

Marketing is key for network marketing businesses to survive. Employees can only do so much in marketing, that is why a marketing strategy should also be developed to make sure the networking business reaches a number of market segments.

Demographics is very important in marketing especially for network marketing companies. Numerous market segments can be targeted in a network market business, and if you manage to find a strategy that does not only grab the attention of different of target markets but also convert them into potential customers, then you can maximize the revenue earning potential of your organization. You might be interested in evaluation plan examples.

5. Discuss investment opportunities

Similar to other businesses, network marketing companies need investment as well. Networking businesses need investment for two things: expansion and recruitment. No business, whether a small enterprise nor large corporation, will want to get stuck in a market position that has no chance in improving. Progress is always a requirement and one method to achieve that professional goal is to get an investment.

Expanding a network marketing business will require a new office (most possibly a new office building) and new staff. Investment is needed to fund these projects. Additionally, network marketing businesses need investment to fund for recruitment. These days, recruitment is no longer limited to giving out flyers to random strangers in the streets and inviting them to join your company or organization. You may also see transition plan examples.

Business Plan for Networking Example

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New One Page Networking Business Plan Example

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Questionnaire for Network Marketing Business Plan Example

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Biggest Investment/Networking Scams in US History

As previously mentioned, not all networking companies have a reputation of being ethical companies. Some of the biggest scams in US history have involved networking or investment companies. You may also see how to do market analysis of a business plan.

Here is a list:

1. Enron

The fall of one of the country’s biggest energy companies resulted in the passage of the Sarbanes-Oxley Act of 2002. The fraud also resulted in a loss of $78 billion in stock market value for the company.

2. Lehman Brothers

Charges have yet to be filed for investment bank Lehman Brothers, which shut down in 2008. But with the bank having $600 billion in assets suddenly filing for bankruptcy, it is highly plausible that top executives are involved in the fraud. You may also like management plan examples.

3. MF Global

The brokerage firm, led by former Goldman Sachs Chairman and politician Jon Corzine, had $41 billion in assets before failing in October 2011. But a year later, over $1 billion in customer assets were still missing and no charges have been filed. You may also check out business plan examples.

4. WorldCom

WorldCom once had $6 billion in assets before it filed for bankruptcy in 2002. A lawsuit was then filed that resulted to former CEO Bernard Edders now serving 25 years in a federal prison.

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