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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Such kits provide ongoing sales and marketing materials information over the course of the one year distributor agreement, and generally there is a modest renewal fee annually.

Historically, a typical “at cost” sales kit has been priced in the $50 range. Typically, such kits included forms, manuals, brochures, and CDs or DVDs. In recent years, sales kits have gone online and are often provided digitally or merely posted in the “cloud.” Such kits provide ongoing sales and marketing materials information over the course of the one year distributor agreement, and generally there is a modest renewal fee annually. In addition, most companies today, charge a modest monthly administrative fee for back office access to genealogy management, replicated website, and communication tools. In recent years, it has not been unusual to see the initial “starter kit” price migrate up to $100. Most companies with tangible products provide for optional “fast start kits.” In addition, many party plan companies mandate starter kits, with sampler product, in ranges of $199 to $299. Technically, only at cost sales and marketing materials should be in a mandated starter kit, but, because party plan companies are so retail driven, regulatory agencies are much more understanding of higher priced mandated sales kits.

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