Start Your Own MLM Company: Should You Do It?

Do you want to start your own MLM Company?  They have made it look so easy, but is it? There have been people who have started highly successful MLM companies:

  • Charles Ragus – Advocare

  • Dave Wood – Empower Network

  • Randy Ray and Wendy Lewis – Jeunesse

  • Jeff Olson – Nerium

  • Richard DeVos and Jay Van Andel – Amway

Many others have failed miserably and watched their MLM fall into nonexistence, and normally in less than a year.

Start Your Own MLM Company: Should You Do It?

There are key factors a person must always consider before starting a MLM company.

  1. Do you have passion? Are you doing this just for the money, or are you wanting to impact people’s lives and make a better world?

  2. Do you have a unique product or service? While you may have a similar item as other companies, does your product or service have something different that makes it stand out?

  3. Is what you are offering safe? Is there any chance of lawsuits because someone was hurt or fell ill using your product?

  4. Do you own proprietary rights to your product? If someone can make an item that is a “knock-off” and sell it much cheaper, what will happen to your company?

  5. Do you have partners or people in place to help you? It is important to know that no one has started a successful MLM company as the lone ranger. You will need help and you need to have contracts in place as to their position and pay.

  6. Do you understand multilevel marketing? Have you been involved in the business format?  Do you understand the rules and regulations that apply to the industry.

  7. Do you understand all the aspects of good leadership? As the leader, you will delegate. Do you have a plan in place of how you will lead your team?

  8. Do you have a good funding source? It costs a lot of money to get a MLM up and running. Do you have the funds or the means to get the funds?

  9. Do you have a “brand” plan? You need a name and a logo.

  10. Are you cut out or qualified to be an entrepreneur?  Being an entrepreneur is not for everyone. Only you know your qualifications, skillset, mindset and experience.  Are you strong enough to handle the stress and financial challenges that come with starting a business.

These are just a few of the important considerations.

If you answered yes to the majority of these questions, you may be the next successful MLM company founder.

In today’s post, I am going to go through the steps of how to start your own MLM company.

Do keep in mind that I am not an attorney, and I cannot guarantee your success.

Many businesses fail even by following protocol.  Individual results will vary.

This is just how the business world is.  It’s what capitalism and free entreprise are all about.

I am getting the information for this article from a wide variety of sources (see reference section below).

The best information is coming from MLM attorneys.  One of the best is Kevin Thompson.  He has a plethora of information on their website.  I suggest you visit his website if you want to start your own MLM company.  You can see his website here.

Other Posts You Might Enjoy:

  1. The Billion Dollar MLM Company List
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  3. Product or Service Based MLM Company: Which One is Better?
  4. MLM Company with Most Seven Figure Earners $1,000,000 +
  5. Ground Floor MLM Opportunity vs. Established MLM Company: Which is Better to Join?


start your own mlm companyStep # 1: Soul Searching, Talk with Mentors & Family

Before you start your own MLM Company, you need to do some soul searching.  Are you really cut out to be an entrepreneur?  Are you qualified?  Do you have the mindset and skill-set?  Is your spouse supportive?  What do your trusted business advisors think about the idea?  Is this something you can commit to for five or more years, even if you don’t make a penny of profit? You should have a good deal of savings o be able o struggle through pains of startup.

Step # 2: Pick a Product Line

Put a lot of thought into this topic.  Brainstorm a bunch of different ideas.  Whittle your list of potential product lines down to your top three to five choices and then do intensive research on each type of product or service. Look at the competition, potential sourcing, trademarks, etc. You want something fairly unique, in mass market demand, and at a price that will sell and give you good profit margins. You also want to make sure that your product will not fall into FDA violations or have any potential issues that could result in lawsuits.

Step # 3: Find a MLM Attorney

A good MLM Attorney can help lead you down a straight path.  Plus, they usually have contacts that can help you create a successful business.  Your attorney can explain the business licensing procedures for your MLM company.  They can also explain all the tax information you need to know about. Plus, this attorney can assist with explaining about possible legal issues that I mentioned in step #2.

Step # 4: Register Your Business & Get Licenses

Your MLM Attorney should also be able to help you with this step. Depending on your location, there are different formats. If you know a business owner, it may be wise to “pick their brain” about this subject.

Step # 5: Find a Manufacturer or Wholesaler

In many cases, you can have your logo and brand labeled onto a product.  This is known as Private Label Rights.  Several great places to research potential wholesalers for the product you desire are:

  • National Association of Wholesalers (



  • and the Thomas Register of American Manufacturers (you should be able to find it at your local library).

Call wholesalers and ask if the offer drop-shipping.  This can help your keep inventory low.

Step # 6: Set Your Prices

In doing so, you will want to keep in mind the commission structure you will use. You will also want to research the competition and see where their prices are. You do not have to put a lower price, but you should be able to offer more value.

small time operatorStep # 7: Develop a Commission Structure

Many MLM start ups just examine successful MLM companies and somewhat copy their commission structures.

You will want to have a system that covers the first level and subsequent levels under them (the downline).

Step # 8: Install Network Marketing Software

I suggest you look for a tried and true software that will cover your needs completely.

In researching network marketing software, I found several that you may want to research:

  • IDSTC – Link

  • Affordable Mobile MLM Software – Link

  • Pro MLM Software – Link

  • Multisoft – Link

  • Plexum – Link

These are just a few.

There are many more, so do your research and find the software that will work best for your needs.

Step # 9: Launch Your Company

This is when the rubber meets the road.  You need distributors, so as you get leads, call these people, meet with them and show them how by taking advantage of the opportunity, they can make good money.

This is an ongoing process, but as the founder and leader, you should have others working under you that you can delegate much of these responsibilities to.

Tips for Raising Capital

I did not speak much earlier on this subject, but there are many costs involved in starting a MLM company.

I have heard estimates of $200,000-$300,000 to get it rolling.  You have to have a plan on how you are going to raise that capital.  You can seek a business loan.

Or you can attract investors, but keep in mind that most venture capital firms are not willing to step out for MLM companies unless it shows an exceptional outlook.

The best areas to go is through friends and family.  That is how most MLM start ups actually get started.

I suggest having a written business plan on how you will reimburse them and the interest rates they will win, or a small percentage of the company.

As your MLM company grows and gains a reputation, you will find venture capital companies willing to throw their money your way, but they will only do so with MLM companies that have a proven track record.

Expand Your Product Line

One of the downfalls of many MLM companies is not adding more products to their line.

You keep your distributors happy when you are adding several items that allows them to attract new customers and revisit old customers with something new and different.

Most MLM companies add new products within the same niche, but others have also found great success moving into other areas.

I suggest that you consult with your top distributors when you are ready to add new products.

Train, Teach and Grow Distributor Sales Force

You want to keep your distributors understanding that you are there for them.

Have motivational events and meetings on a regular basis.

Work on expanding your coverage areas.

And remember to reward those who are helping you build the empire.

Final Thoughts

Multilevel marketing is an excellent business model.

With the correct approach, you can build a highly successful dynasty.

But with the wrong approach, you could find yourself facing legal challenges and bankruptcy.

This is why right at the start I explained that you should consult with a MLM attorney.

There are also many educational materials you can read and study on starting a MLM business, so just search for them in Amazon.

I also highly suggest that you study what and how the successful MLM founders have done.

In many cases, you can contact them and they will mentor you.

So let’s reiterate:

  • A dream

  • An attorney

  • Products

  • Key people

  • Pricing

  • Commission structure

  • MLM software

  • Training

  • Advertise

  • Enjoy life

If you want to start your own MLM company, please let us know about it here at Online MLM Community.  We like to keep abreast of any new MLM companies and what they have to offer.

If you have or do own a MLM company and would be willing to share any added advice with our readers, please do so in the comment section below.  If you have any questions or opinions, you can post them below too.

I do recommend that you visit and read all the reference links I am putting here.

Remember that we are not attorneys and this information is for educational purposes. Every business has varied results, we cannot guarantee success.

They can also help you in your dream of starting a MLM company.

Thank you for visiting and we wish you great success in your endeavor.



  2. How do I Raise Capital to Start My MLM Business?




About the Author

Greg Boudonck is a freelance writer and the author of over 50 books. He writes on many different topics, but business subjects are one of his primary areas of writing expertise. See Greg’s biography here.

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Chuck Holmes
Phone: (352) 503-4816 EST (my home office/no texts)

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