About Professional Planning Associates Expertise Questions relating to business plan preparation, contents, approach and how to prepare plans that provide investors with the information required to make an investment decision
Experience Professional Planning has been operating since 1993. Its principal has over 30 years of business experience. The Company's financial expert has earned a Doctorate in Accounting
Organizations Gold Coast Venture Capital Club, Coral Ridge Kiwanis
Publications Investor's Business Daily, Vfinance.com, the Black Entrepreneurs Association, Webentrepreneurs.com andIslamiQMoney.cpm
Education/Credentials B.A. from Hofstra University
Expert: Professional Planning Associates Date: 8/17/2004 Subject: Starting an MLM
Question Dear Sirs,
We sell a national consumer discount \ savings membership with 250,000 merchants offering two-for-one, 50% off, buy-one-get-one free for fine or casual dining, hotel and travel, movie tickets, airlines and entertainment, groceries, long distance & more.
A one year membership retails for between $39.95 and $72.95 depending on who's selling it, (we are one of 4 resellers) We pay $14.95 for each membership.
We believe it's the perfect MLM product because it appeals to such a large audience with major discounts on so many products and services people need & want.
Questions:
1. Do you think this is a good MLM product?
2. What sounds like the right price point?
3. Can we find an experienced MLM professional who may be interested in associating with us in starting an MLM company? How might we find such a person?
4. We are self-funded, but are interested in perhaps finding investment capital so we can hit a larger market quicker. Are there investors for a new MLM company?
Thank you for your answers,
Michael Banks
mbanks@savingsdiscounts.com
Answer I am not qualified to answer the first 2 questions, however I have some comments on 3 and 4.
As with most industries there are professionals who will get involved with a MLM company. I am sure there are MLM industry associations and magazines. Advertising with them is usually a solid methodology.
There are investors for all types of projects, however I would not say MLMs are hot investment items such as bio-medical or other hi-tech industries. To access investors you need an investor grade business plan. See the article in proplana.com for a discussion of business plans. Then you must network, post the plan on sites such as vfinance.com or NVST or hire professionals to find investors. It is not an easy process especially for a start-up.
