Network Marketing Business Plan
You’ve come to the right place to create your Network Marketing business plan.
We have helped over 1,000 entrepreneurs and business owners create business plans and many have used them to start or grow their Network Marketing businesses.
Below is a template to help you create each section of your Network Marketing business plan.
Executive Summary
Business Overview
GlamGirl Cosmetics is a startup network marketing company located in Atlanta, Georgia. The company is founded by Allison Anderson, who has experience in network marketing. Now, with the expertise of knowledge and business acumen, she has determined she can confidently start and effectively grow a successful GlamGirl Cosmetics company. She believes her experience of strategic growth, marketing skills, financial capabilities, and wide and deep knowledge of network marketing practices will provide everything needed for long-term growth and profitability.
GlamGirl Cosmetics will provide a comprehensive array of all-natural cosmetic products for a wide variety of clients. GlamGirl Cosmetics will be the premier cosmetic company, providing services and products to each client while supporting the strategic goals of the company. GlamGirl Cosmetics will be the ultimate choice in cosmetics for clients to ensure that every need of the customer is fully and completely met.
Product Offering
The following are the services that GlamGirl Cosmetics will provide:
- Initial training and on-going empowerment for independent consultants to build their own successful businesses while offering top-notch beauty products to consumers
- Direct-sales model, allowing independent consultants to promote and sell proprietary product lines of GlamGirl beauty and cosmetic products.
- Wide variety of products, including skincare, makeup, and beauty accessories
- Easy-to-succeed plans for consultants to choose their own hours to work and their own schedules for potential client gatherings
- Attractive compensation plans
- Monthly subscription boxes for clients
Customer Focus
GlamGirl Cosmetics will target all interested individuals who would like to independently represent and sell GlamGirl cosmetics via a direct-selling model. GlamGirl Cosmetics will also target universities and colleges to recruit young adults who want to self-start in their own careers. GlamGirl Cosmetics will target customers of GlamGirl Cosmetics who would like to make additional income for their families and those who need to supplement their primary job with additional income.
Management Team
GlamGirl Cosmetics will be owned and operated by Allison Anderson. She recruited her former associate, Shayla Duncan, to be her Consultant Manager. Allison also recruited Tremain Dowd, the financial manager in a former employment, to be the new Financial Director of GlamGirl Cosmetics, overseeing all financial operations and long-term financial strategies.
Allison Anderson graduated from Georgia State College with a degree in marketing. She was formerly an independent consultant and state director in a network marketing company that sold a product line of skin care items. Allison was an independent consultant for three years within the company, building her downline in sales to over $500,000, while assisting in training and leading others to do the same. Allison was then promoted to the state director role, where her percentages of each sale became larger and her income grew to almost double her prior earnings.
Shayla Duncan, formerly an associate and independent consultant with Allison Anderson, will be the consultant manager in the startup company, overseeing the training and development of the independent consultants.
Tremain Dowd, formerly the financial manager in a network marketing company, will be the financial director at GlamGirl, overseeing all financial operations and long-term financial strategies.
Success Factors
GlamGirl Cosmetics will be able to achieve success by offering the following competitive advantages:
- Friendly, knowledgeable, and highly-qualified team of GlamGirl Cosmetics
- Initial training and on-going empowerment for independent consultants to build their own successful businesses while offering top-notch beauty products to consumers
- Direct-sales model, allowing independent consultants to promote and sell proprietary product lines of GlamGirl beauty and cosmetic products.
- Attractive compensation plans
- Monthly subscription boxes for clients
- GlamGirl Cosmetics offers the best pricing in town. Their pricing structure is the most cost effective compared to the competition.
Download the Network Marketing business plan template (including a customizable financial model) to your computer here <–
Financial Highlights
GlamGirl Cosmetics is seeking $200,000 in debt financing to launch its GlamGirl Cosmetics. The funding will be dedicated toward securing the office space and purchasing office equipment and supplies. Funding will also be dedicated toward three months of overhead costs to include payroll of the staff, rent, and marketing costs for the print ads and marketing costs. The breakout of the funding is below:
- Office space build-out: $20,000
- Office equipment, supplies, and materials: $10,000
- Three months of overhead expenses (payroll, rent, utilities): $150,000
- Marketing costs: $10,000
- Working capital: $10,000
The following graph outlines the financial projections for GlamGirl Cosmetics.
Company Overview
Who is GlamGirl Cosmetics?
GlamGirl Cosmetics is a newly established network marketing company in Atlanta, Georgia. GlamGirl Cosmetics will be the most reliable, cost-effective, and attractive cosmetic choice for young adults, teens and pre-teens in Atlanta and the surrounding communities. GlamGirl Cosmetics will provide a comprehensive menu of all-natural cosmetic products to consumers, in conjunction with an extensive training and ongoing-educational program for their independent consultants. Their full-service, direct-selling approach includes a comprehensive array of all-natural cosmetic and beauty products.
Allison will be able to manage both the training and on-going teamwork for independent consultants. At the same time, Allison will oversee the production of the GlamGirl product line. The team of professionals at GlamGirl Cosmetics are highly-qualified and experienced in network marketing and the sales of cosmetic products. GlamGirl Cosmetics introduces independent sales to individuals seeking to advance personal monetary goals, while at the same time, it introduces superior and all-natural cosmetics and beauty products to their target audiences. In this construct, it removes all headaches and issues of buying numerous products to “try on” and ensures that customers are consistently satisfied while building long-lasting relationships with the direct-sales independent consultants.
GlamGirl Cosmetics History
GlamGirl Cosmetics is owned and operated by Allison Anderson, who was formerly an independent consultant and state director in a network marketing company that sold a product line of skin care items. Allison was an independent consultant for three years within the company, building her downline in sales to over $500,000, while assisting in training and leading others to do the same. Allison was then promoted to the state director role, where her percentages of each sale became larger and her income grew to almost double her prior earnings. She believes she has gained the trust and commitment of both her own downline independent consultants and that of other state directors that will enable her to start her GlamGirl Cosmetics with their assistance and work to grow the GlamGirl sales in the long-term strategic plan.
Since incorporation, GlamGirl Cosmetics has achieved the following milestones:
- Registered GlamGirl Cosmetics, LLC to transact business in the state of Georgia.
- Has a contract in place for a 10,000 square foot office at one of the midtown buildings
- Reached out to numerous contacts to include GlamGirl Cosmetics in their independent consulting businesses.
- Began recruiting a staff of independent consultants and office personnel to work at GlamGirl Cosmetics
GlamGirl Cosmetics Services
The following will be the services GlamGirl Cosmetics will provide:
- Initial training and on-going empowerment for independent consultants to build their own successful businesses while offering top-notch beauty products to consumers
- Direct-sales model, allowing independent consultants to promote and sell proprietary product lines of GlamGirl beauty and cosmetic products.
- Wide variety of products, including skincare, makeup, and beauty accessories
- Easy-to-succeed plans for consultants to choose their own hours to work and their own schedules for potential client gatherings
- Attractive compensation plans
- Monthly subscription boxes for clients
Industry Analysis
The network marketing industry is expected to grow over the next five years to over $329 billion.
The growth will be driven by an increase in the population of adults who want to independently work for themselves, determining their own hours in business and their own time in demonstrating product lines. The growth will also be driven by the increasing desire of young adults to travel internationally and experience new adventures, both of which need to be financed. The network marketing industry will also grow as young families require additional income for children.
Costs will likely be reduced as products of all kinds become lower in prices as availability increases. Network marketing brings the ability to drive costs even lower than brick-and-mortar stores, due to the ability of network marketing executives to purchase directly from manufacturers in high-volume quantities. Technology will also drive the prices lower, as increased efficiency will reduce the number of tasks to do on a daily basis and reduce the number of employees to conduct those tasks.
Download the Network Marketing business plan template (including a customizable financial model) to your computer here <–
Customer Analysis
Demographic Profile of Target Market
GlamGirl Cosmetics will target all interested individuals who would like to independently represent and sell GlamGirl cosmetics via a direct-selling model. GlamGirl Cosmetics will also target universities and colleges to recruit young adults who want to self-start in their own careers. GlamGirl Cosmetics will target customers of GlamGirl Cosmetics who would like to make additional income for their families and those who need to supplement their primary job with additional income.
The precise demographics for GlamGirl Cosmetics are:
| Total | Percent | |
|---|---|---|
| Total population | 1,680,988 | 100% |
| Male | 838,675 | 49.9% |
| Female | 842,313 | 50.1% |
| 20 to 24 years | 114,872 | 6.8% |
| 25 to 34 years | 273,588 | 16.3% |
| 35 to 44 years | 235,946 | 14.0% |
| 45 to 54 years | 210,256 | 12.5% |
| 55 to 59 years | 105,057 | 6.2% |
| 60 to 64 years | 87,484 | 5.2% |
| 65 to 74 years | 116,878 | 7.0% |
| 75 to 84 years | 52,524 | 3.1% |
Customer Segmentation
GlamGirl Cosmetics will primarily target the following customer profiles:
- Individuals interested in direct-sales and independent consulting
- Individuals starting in first-time jobs or careers
- Universities and colleges with graduating students
- Customers of GlamGirl cosmetics
Competitive Analysis
Direct and Indirect Competitors
GlamGirl Cosmetics will face competition from other companies with similar business profiles. A description of each competitor company is below.
Mary Jane Cosmetics
The Mary Jane Cosmetics company has been in existence for over 40 years. It was initially started by Mary Jane Goodwin, who invested her savings in a new cosmetic line and then set up independent consultants to create direct-selling opportunities. Although Mary Jane Goodwin is now retired, her company has grown to over 15M in revenues and is successful around the globe. The popularity of her proprietary cosmetics and the dedicated customers of her product lines have brought long-term gains to the company.
Train & Teach
The owner of Train & Teach is Jerry Swan, a former secondary education teacher who started his network marketing company for independent consultants in 2015. Jerry used his expertise to train five adults in methods and practices of teaching primary students. He then placed the adults in various positions as tutors, where they replicated his model each with five additional people who wanted to teach. In this manner, a network marketing company was established. There are currently over 600 tutors who are independent teachers, working on their own schedule, and creating wealth in the process. Jerry Swan is now considering a global network marketing company, replicating his model within several countries.
Teen Treasures Company
Teen Treasures Company was started in 2010 as a network marketing company, established to reach the teen and pre-teen audience by direct sales methods. The owner of Teen Treasures, Shannon Swanson, was a former direct sales manager within a popular housewares network marketing company, where she earned enough money to start the Teen Treasures Company. To attract teens and pre-teens within her model of direct sales via independent salespeople, she targeted college students who would like to earn cash with each sale and she invited the students to meet in coffee cafes, outdoor restaurants, and other casual environments to present the product lines to the teens and pre-teens. With products including skin care, acne erasers, themed jewelry, Native American turquoise, and silver and gold plated items, the networking marketing company soon created a profit for the key executives.
Download the Network Marketing business plan template (including a customizable financial model) to your computer here <–
Competitive Advantage
GlamGirl Cosmetics will be able to offer the following advantages over their competition:
- Friendly, knowledgeable, and highly-qualified team of independent consultants at GlamGirl Cosmetics
- Initial training and on-going empowerment for independent consultants to build their own successful businesses while offering top-notch beauty products to consumers
- Direct-sales model, allowing independent consultants to promote and sell proprietary product lines of GlamGirl beauty and cosmetic products.
- Attractive compensation plans
- Monthly subscription boxes for clients
- GlamGirl Cosmetics offers the best pricing in town. Their pricing structure is the most cost effective compared to the competition.
Marketing Plan
Brand & Value Proposition
GlamGirl Cosmetics will offer the unique value proposition to its clientele:
- Highly-qualified team of skilled independent consultants using direct-selling tactics to present all-natural cosmetics and beauty products to individuals throughout Atlanta
- Initial training and on-going empowerment for independent consultants to build their own successful businesses while offering top-notch beauty products to consumers
- Attractive compensation plans
- Monthly subscription boxes for clients
Promotions Strategy
The promotions strategy for GlamGirl Cosmetics is as follows:
Word of Mouth/Referrals
Allison Andreson has built up an extensive list of contacts over the years by providing exceptional service and expertise to independent consultants and their customers. These contacts and clients will follow her to her new company and help spread the word of GlamGirl Cosmetics.
Professional Associations and Networking
Allison Anderson will join both local and national associations to network for additional business opportunities. She will attend the Networking Association of America to scout for highly-proficient executives who may want to join her team at GlamGirl Cosmetics.
Print Advertising
Due to the nature of direct-selling, there will be no public print advertising. However, there will be cosmetic catalogs printed and online, with ordering available either by phone or online.
Website/SEO Marketing
GlamGirl Cosmetics will fully utilize their website. The website will be well organized, informative, and list all the direct-selling opportunities that GlamGirl Cosmetics provides. The website will also list their contact information. The website will engage in SEO marketing tactics so that anytime someone types in the Google or Bing search engine “cosmetic company” or “network marketing near me,” GlamGirl Cosmetics will be listed at the top of the search results.
Pricing
The pricing of GlamGirl Cosmetics will be moderate and on par with competitors so customers feel they receive excellent value when purchasing their services.
Operations Plan
The following will be the operations plan for GlamGirl Cosmetics.
Operation Functions:
- Allison Anderson will be the owner and President of the company. She will oversee all staff and manage client relations. Allison has spent the past year recruiting the following staff:
- Shayla Duncan will be the consultant manager, overseeing the training and development of the independent consultants.
- Tremain Dowd will be the financial director, overseeing all financial operations and long-term financial strategies.
- Tami Wainwright will be the part-time network marketing manager for GlamGirl Cosmetics and each client it serves.
Download the Network Marketing business plan template (including a customizable financial model) to your computer here <–
Milestones:
GlamGirl Cosmetics will have the following milestones completed in the next six months.
- 5/1/202X – Finalize contract to lease office space
- 5/15/202X – Finalize personnel contracts for the GlamGirl Cosmetics
- 6/1/202X – Finalize contracts for GlamGirl Cosmetics vendors
- 6/15/202X – Begin networking at industry events
- 6/22/202X – Begin moving into GlamGirl Cosmetics office
- 7/1/202X – GlamGirl Cosmetics opens its doors for business
Management Team
GlamGirl Cosmetics will be owned and operated by Allison Anderson. She recruited her former associate, Shayla Duncan, to be her Consultant Manager. Allison also recruited Tremain Dowd, the financial manager in a former employment, to be the new Financial Director of GlamGirl Cosmetics, overseeing all financial operations and long-term financial strategies.
Allison Anderson graduated from Georgia State College with a degree in marketing. She was formerly an independent consultant and state director in a network marketing company that sold a product line of skin care items. Allison was an independent consultant for three years within the company, building her downline in sales to over $500,000, while assisting in training and leading others to do the same. Allison was then promoted to the state director role, where her percentages of each sale became larger and her income grew to almost double her prior earnings.
Shayla Duncan, formerly an associate and independent consultant with Allison Anderson, will be the consultant manager in the startup company, overseeing the training and development of the independent consultants.
Tremain Dowd, formerly the financial manager in a network marketing company, will be the financial director at GlamGirl, overseeing all financial operations and long-term financial strategies.
Financial Plan
Key Revenue & Costs
The revenue drivers for GlamGirl Cosmetics are the fees they will charge to the customers of independent consultants for their products.
The cost drivers will be the overhead costs required in order to staff GlamGirl Cosmetics. The expenses will be the payroll cost, rent, utilities, office supplies, and marketing materials.
Funding Requirements and Use of Funds
GlamGirl Cosmetics is seeking $200,000 in debt financing to launch its startup network marketing company. The funding will be dedicated toward securing the office space and purchasing office equipment and supplies. Funding will also be dedicated toward three months of overhead costs to include payroll of the staff, rent, and marketing costs for the print ads and association memberships. The breakout of the funding is below:
- Office space build-out: $20,000
- Office equipment, supplies, and materials: $10,000
- Three months of overhead expenses (payroll, rent, utilities): $150,000
- Marketing costs: $10,000
- Working capital: $10,000
Download the Network Marketing business plan template (including a customizable financial model) to your computer here <–
Key Assumptions
The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and in order to pay off the startup business loan.
- Number of Customers Per Month: 300
- Average Revenue per Month: $23,000
- Office Lease per Year: $100,000
Financial Projections
Income Statement
| FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | ||
|---|---|---|---|---|---|---|
| Revenues | ||||||
| Total Revenues | $360,000 | $793,728 | $875,006 | $964,606 | $1,063,382 | |
| Expenses & Costs | ||||||
| Cost of goods sold | $64,800 | $142,871 | $157,501 | $173,629 | $191,409 | |
| Lease | $50,000 | $51,250 | $52,531 | $53,845 | $55,191 | |
| Marketing | $10,000 | $8,000 | $8,000 | $8,000 | $8,000 | |
| Salaries | $157,015 | $214,030 | $235,968 | $247,766 | $260,155 | |
| Initial expenditure | $10,000 | $0 | $0 | $0 | $0 | |
| Total Expenses & Costs | $291,815 | $416,151 | $454,000 | $483,240 | $514,754 | |
| EBITDA | $68,185 | $377,577 | $421,005 | $481,366 | $548,628 | |
| Depreciation | $27,160 | $27,160 | $27,160 | $27,160 | $27,160 | |
| EBIT | $41,025 | $350,417 | $393,845 | $454,206 | $521,468 | |
| Interest | $23,462 | $20,529 | $17,596 | $14,664 | $11,731 | |
| PRETAX INCOME | $17,563 | $329,888 | $376,249 | $439,543 | $509,737 | |
| Net Operating Loss | $0 | $0 | $0 | $0 | $0 | |
| Use of Net Operating Loss | $0 | $0 | $0 | $0 | $0 | |
| Taxable Income | $17,563 | $329,888 | $376,249 | $439,543 | $509,737 | |
| Income Tax Expense | $6,147 | $115,461 | $131,687 | $153,840 | $178,408 | |
| NET INCOME | $11,416 | $214,427 | $244,562 | $285,703 | $331,329 |
Balance Sheet
| FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | ||
|---|---|---|---|---|---|---|
| ASSETS | ||||||
| Cash | $154,257 | $348,760 | $573,195 | $838,550 | $1,149,286 | |
| Accounts receivable | $0 | $0 | $0 | $0 | $0 | |
| Inventory | $30,000 | $33,072 | $36,459 | $40,192 | $44,308 | |
| Total Current Assets | $184,257 | $381,832 | $609,654 | $878,742 | $1,193,594 | |
| Fixed assets | $180,950 | $180,950 | $180,950 | $180,950 | $180,950 | |
| Depreciation | $27,160 | $54,320 | $81,480 | $108,640 | $135,800 | |
| Net fixed assets | $153,790 | $126,630 | $99,470 | $72,310 | $45,150 | |
| TOTAL ASSETS | $338,047 | $508,462 | $709,124 | $951,052 | $1,238,744 | |
| LIABILITIES & EQUITY | ||||||
| Debt | $315,831 | $270,713 | $225,594 | $180,475 | $135,356 | |
| Accounts payable | $10,800 | $11,906 | $13,125 | $14,469 | $15,951 | |
| Total Liability | $326,631 | $282,618 | $238,719 | $194,944 | $151,307 | |
| Share Capital | $0 | $0 | $0 | $0 | $0 | |
| Retained earnings | $11,416 | $225,843 | $470,405 | $756,108 | $1,087,437 | |
| Total Equity | $11,416 | $225,843 | $470,405 | $756,108 | $1,087,437 | |
| TOTAL LIABILITIES & EQUITY | $338,047 | $508,462 | $709,124 | $951,052 | $1,238,744 |
Cash Flow Statement
| FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | ||
|---|---|---|---|---|---|---|
| CASH FLOW FROM OPERATIONS | ||||||
| Net Income (Loss) | $11,416 | $214,427 | $244,562 | $285,703 | $331,329 | |
| Change in working capital | ($19,200) | ($1,966) | ($2,167) | ($2,389) | ($2,634) | |
| Depreciation | $27,160 | $27,160 | $27,160 | $27,160 | $27,160 | |
| Net Cash Flow from Operations | $19,376 | $239,621 | $269,554 | $310,473 | $355,855 | |
| CASH FLOW FROM INVESTMENTS | ||||||
| Investment | ($180,950) | $0 | $0 | $0 | $0 | |
| Net Cash Flow from Investments | ($180,950) | $0 | $0 | $0 | $0 | |
| CASH FLOW FROM FINANCING | ||||||
| Cash from equity | $0 | $0 | $0 | $0 | $0 | |
| Cash from debt | $315,831 | ($45,119) | ($45,119) | ($45,119) | ($45,119) | |
| Net Cash Flow from Financing | $315,831 | ($45,119) | ($45,119) | ($45,119) | ($45,119) | |
| Net Cash Flow | $154,257 | $194,502 | $224,436 | $265,355 | $310,736 | |
| Cash at Beginning of Period | $0 | $154,257 | $348,760 | $573,195 | $838,550 | |
| Cash at End of Period | $154,257 | $348,760 | $573,195 | $838,550 | $1,149,286 |
Network Marketing Business Plan FAQs
What Is a Network Marketing Business Plan?
A network marketing business plan is a plan to start and/or grow your network marketing business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.
You can easily complete your Network Marketing business plan using our Network Marketing Business Plan Template here.
What are the Main Types of Network Marketing Businesses?
There are a number of different kinds of network marketing businesses, some examples include: Services network marketing, Product network marketing, and Membership network marketing.
How Do You Get Funding for Your Network Marketing Business Plan?
Network Marketing businesses are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.
What are the Steps To Start a Network Marketing Business?
Starting a network marketing business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.
1. Develop A Network Marketing Business Plan - The first step in starting a business is to create a detailed network marketing business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.
2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your network marketing business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your network marketing business is in compliance with local laws.
3. Register Your Network Marketing Business - Once you have chosen a legal structure, the next step is to register your network marketing business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws.
4. Identify Financing Options - It’s likely that you’ll need some capital to start your network marketing business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms.
5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations.
6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events.
7. Acquire Necessary Network Marketing Equipment & Supplies - In order to start your network marketing business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation.
8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your network marketing business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising.