We're revisiting the topic of raising capital because of its popularity. Every network marketing company needs money to launch and grow their enterprise.
As an MLM Software provider, we are pleased to have aligned ourselves with industry experts with experience helping new direct sale enterprises to launch successfully. Professionals that can help you raise the money to launch your new idea and grow your company.
This month we are highlighting several providers that have great insights on raising capital, specifically for network marketing companies.
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Can startup MLMs sell positions to fund their businesses?
This is an important question and one I get asked often by startup entrepreneurs: Can I sell top positions in my prelaunch business to fund it? To quote my least favorite answer from law school, the answer is:
Guaranteed Funding for Qualified MLM/Direct Sales Companies
Multi-level and party-plan start-ups often struggle to get their ideas off the ground because of the lack of capital.
Some of these entrepreneurs stop raising capital when they no longer feel comfortable soliciting family and close friends. Unfortunately, this paradigm overlooks their product fans who are eager to be customers and distributors and help them build the business.
Over the past five years we have been able to assist several new network marketing companies with their initial funding. Based on our experience, this type of company is actually easier to fund than businesses using other marketing systems. The reason for this is that the “founders,” initial investors in the company, are able to secure not only equity but top “positions” in the company which can provide overrides over future distributors.