MLM Cleaning Products Business Plan
Earthly Clean is an environmentally-friendly cleaning product company that uses multi-level marketing (MLM). Devon McGregor founded Earthly Clean. The company has been officially registered as an Illinois LLC.
Products
Earthly Clean offers a full line of environmentally-friendly, non-toxic cleaning products for all household needs. Earthly Clean has signed a contactual agreement for production of a full line of private-label products with a major cleaning supplies manufacturer. Earthly Clean will get very competitive product prices because it buys directly from the manufacturer. Earthly Clean finds it very valuable that the manufacturer will allow Earthly Clean orders of as little as $150. Earthly Clean will benefit from this in order to manage their inventory efficiently. All purpose soap, bathtub/tub cleaner, detergent and window cleaner will all be included in the initial product range. Earthly Clean offers high-quality products at competitive prices.
The Market
Earthly Clean will sell products to two customer segments. The first is individual consumers who use the products in their homes. These individuals are environmentally conscious consumers who are looking for non-toxic cleaners for their home. These are people of the younger generation who are politically liberal and are open to making a difference in improving our environment.
The second target segment is made up of a small group of customers who are not in the first segment. Some of these individuals will be recruited to become distributors of Earthly Clean products. A distributor is an individual who sells Earthly Clean products independently to their set of customers. This segment is taken form actual customers who use and purchase products. This creates a sales team who is passionate about the products they are selling. The distributors that make up this segment receive a sales commission if they are able to recruit new distributors who then make sales. This is how MLM business models work. Earthly Clean sells to consumers, some of those consumers then become distributors earning revenue for Earthly Clean as well as themselves. If these new distributors attract more people to sell, they then make money on their specific sales as well as money on everything that their recruited sales people sell.
An Efficient Distribution Model
This is a cost-effective distribution method that allows products to be purchased privately from their manufacturer. It ensures the best quality and lowest prices. They are then sold direct to the consumer. The old bureaucratic distribution model that made huge corporate profits has been eliminated. MLM business models are often confused for pyramid schemes that are illegal in the U.S.
Pyramid schemes are business structures that provide compensation specifically for the recruiting of new sellers. The promise of financial rewards is made to people for referring more people, regardless of the sales. Herein lies the crucial distinction that regulatory authorities analyze when determining if a business is a pyramid scheme: the way compensation is rewarded. It is considered illegal if it relies on recruiting. Earthly Clean only compensates distributors for sales, an effective and efficient sales and distribution system.
Earthly Clean is an innovative new business that channels people’s passion to make a positive impact on the environment. They also have the opportunity to make a profit while sharing their passion with family and friends. Earthly Clean is able to quickly generate revenue through its multi-level marketing approach. Sales forecasts for the next two years show that revenues will rise to $90,000. The net profit for the same year will be 4.19%, 8.66%.
1.1 Mission
Earthly Clean’s mission consists of the creation of an environmentally-friendly distribution company that utilizes grassroots and network marketing techniques to promote the product and make meaningful contributions to the environment. Earthly Clean exists to support its members and to support the environment.
1.2 Objectives
- To start a company that is profitable and sells environmentally friendly cleaning products.
- Create an organization where sales are rewarded to individuals who refer others.
Success keys 1.3
- Distribute only environmentally-friendly, high quality products
- Recrute new people to help in the sales.
- Build the company on a solid basis of integrity.