These are some key steps in managing a multilevel marketing company.
- Determine the mark-up policy based on the uniqueness of the product - 7 times - higher is better
- Determine the payout percentage of the MLM to attract the network - 60% - lower is better
- The gross margin is determined by 100% deducting 60% plus product variable costs percentage - higher is better.
- Determine the overhead costs required to manage the company.- lower the better
- Is the break-even sales achievable with a known marketing strategy?
If it is not as the above, the MLM is not viable.
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