MLM Marketing Plan: Common Mistakes When Creating

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Despite the huge potential of the MLM industry, according to Gitnux, 90% of new network projects face difficulties in attracting partners and cease their activities within the first 2 years. The most common reason for such failures is a poorly developed marketing plan. But what marketing mistakes block the development of MLM business?

What is a marketing plan

MLM marketing plan (bonus plan or compensation plan) is a system of rewards forex data that describes how and for what network company partners receive their income. It clearly defines the percentages and conditions for calculating commissions for personal sales of the distributor and sales volumes of the created team, criteria for obtaining the highest rank or qualification and bonuses for achieving them.

In network business, a bonus plan performs several vital functions, including:

Ensuring the company's profitability - maintains a balance between payments to distributors and MLM business income, guaranteeing its financial stability and promoting long-term growth;

expansion of the partner network - it is the terms of cooperation and bonuses included in the marketing plan that play a key role in a person’s decision to become a partner of an MLM company;

support for partner activity - motivates networkers to search for new clients, increase sales, attract newcomers and develop their structure to obtain greater profits.