The costs of startup vary widely, depending on the type of product or service and need for infrastructure. It is obvious that a company which is engaged in its own manufacturing, ownership of warehousing and distribution facilities, etc. will expend much more in cost than a company which is furnished by suppliers of private label products or is involved in a service-type product. With respect to the initial infrastructure costs of a startup MLM, it may be reasonably expected that a company will expend, during the first year, $100,000-$200,000 for four key infrastructure elements: legal, software, compensation plan design, and creative design for online and offline promotional materials. Beyond these costs, the variables are far too extensive to predict without development of detailed pro forma projections.
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