Tuesday, July 19, 2011

Multilevel Marketing

These are some key steps in managing a multilevel marketing company.
  1. Determine the mark-up policy based on the uniqueness of the product -  7 times - higher is better
  2. Determine the payout percentage of the MLM to attract the network - 60%  - lower is better
  3. The gross margin is determined by 100% deducting 60% plus product variable costs percentage - higher is better.
  4. Determine the overhead costs required to manage the company.- lower the better
  5. 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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