How to start an MLM or Direct Selling business in the Philippines

Are you a business-minded person that wants to start your own MLM company? well, to be honest, it is not for everyone, We have seen too many people tried to start in this business but did not make it further.

But! If you are dedicated and has the right mindset and resources, then an MLM business is the best business that is not only profitable but helps many people in just a small or even no capital.

Here are the basic things you need to start a successful MLM business step by step, supposing you already have the funding capital.

1. Product Supplier

Find a good and quality product supplier that can be reasonably be priced at SRP and with all the legalities that you won’t need to worry like an FDA license. You should know what you think you can sell and wanted to market without any doubt, look for a product that has a good selling proposition and marketability.

Here are some ideas of products that as a good profit margin.

  • Beverages like coffee, chocolate, fruits, and herbal drinks.
  • Vitamins and Food supplements.
  • Personal care like soaps, toothpaste, lotions, and creams.
  • Cosmetics like makeups, facial care, and Spa products.
  • Perfumes and Fragrances.
  • Electronic Gadgets and Devices.
  • Business Franchises like Food carts, Bills Payment, E-loading, Ticketings.

2. Marketing Plan

If you already decided and computed your profit for your product then you must now decide the compensation plan for your future distributors. You can choose to go to Direct Selling or Multi-level Marketing. This will greatly depend on your products profit margin, for example, a high-end gadget product cannot be included in an MLM Binary complan as this has a very low-cost margin for a binary payout.

Direct Selling is for the people that are experienced retailers and product distributors, this means your compensation plan should be rewarding for the sales of products by personal and group sales. You can also add other incentives for the rank achievers.

Multilevel Marketing is for the people that are group-oriented and pushing for a bigger team. If you wanted to scale faster then networking is the right direction, as this rewards the members for their invites and team profits. There are many MLM complans that you can combine like Referrals, Binary, Unilevel, Stair-steps, matrix and more.

3. Business Registration

Everything has to be legally done and this is your peace of mind for problems that may come along the way if you are running any business.

4. IT System Developer

Look for a developer that has full knowledge of your needs and understands the business. There are a lot of low priced freelance developers in the Philippines but are not backed with good support that can stand with your business in many years to come, but if you know the IT provider then you can have that peace of mind.

The system is your life support in this kind of business all of the transactions, commissions of your members, database and computations are held by the system.

5. Hire admin and staffs

You will need at least 3-5 person to run the business. First is an accountant to handle your finances and monthly bookkeeping records and day-to-day financial work. A front-desk staff that can also handle the sales transaction of your distributors or members. Another is a warehouse staff that will manage your products and inventory.

More staffs are needed if you have a bigger requirement like marketing support staff, additional cashiers, assistant warehouse staff or executive positions like managers and vice presidents for particular departments.

6. Distributors and Network Leaders

You are in the people business so your focus should be on your members or distributors that will sell or push your products and grow your network exponentially. Look for leaders that can lead your company or train a new breed of leaders that has a better dedication to your company.

 

These are just the basic list on how to start your own MLM or Direct selling business, each has different scenarios and business model that can change this list, but whatever your steps are, you should always work on it hard and do it hands-on as with any business it cannot run by itself if you will not know the problem because you are not present in the process.

If you have other things or suggestions on how to successfully start these businesses, please comment below and we would be glad to update this post.

 

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