Yevhen Kasyanenko: Starting an MLM Business – How to Build a Successful MLM Startup

Only someone who is an expert in this field. So let’s find out about the key steps you need to take. Yevhen Kasyanenko, an expert in MLM and head of the successful BlooMLM team, shared his knowledge with us.

Where to start building a successful MLM startup

Starting an MLM business from scratch is not just about registering with a company, but about building a sustainable system step by step. Below, we will look at the key stages that will help you lay a solid foundation for network marketing startups to succeed in a competitive environment.

Step 1. Choosing a niche and product

It is impossible to launch an effective business without deciding on a niche. The choice of niche will affect sales success and whether the company will be able to attract new customers and partners. In network marketing, a popular startup is usually based on in-demand goods and services that people are willing to buy or order regularly. These include financial services, cosmetics, leisure products, and digital solutions. According to statistics from Direct Selling News (DSN), about 70% of MLM sales are for products that people buy regularly (cosmetics, vitamins, household chemicals).

What else should you focus on when choosing a niche and product? Here are the key points to help you make the right choice:

• Product uniqueness. If the product is not unique, it should at least have advantages that set it apart from its competitors. For example, Nu Skin’s patented anti-aging technologies are such a product. Herbalife offers interesting nutrition programs that cannot be replaced by conventional alternatives because they are unique and comprehensive. These companies are among the top 50 most profitable MLM companies in the world (according to DSN, their annual turnover exceeds $5 billion).
• A niche with fewer competitors: Oversaturation is a common reason why startup MLM projects fail. Instead, explore high-growth segments such as eco-products, natural cosmetics, or digital services. When there are already large companies in your chosen niche, it will be difficult for you, as a newcomer, to stand out from them. Therefore, there are at least two options: choose a segment in which there is stable growth in demand for the product, or come up with a new value for the product and offer it to customers. Niches that are currently growing fast are eco-friendly products and natural cosmetics. A more flexible niche that doesn’t need warehouses is digital products. 
• Something that builds trust. It’s important to remember that MLM businesses are based on recommendations. Partners and customers will be happy to talk about the brand if they have experienced the benefits and quality of the product themselves. This greatly simplifies the development of a network business startup. A successful company guarantees the quality of its products and offers the option of returning a product if it is not suitable. This increases partners’ trust in the company and reduces risks.

It is also worth remembering one more recommendation. Before launching a startup, carefully analyze the market. According to WFDSA, up to 60% of new MLM companies close within the first 2–3 years precisely because they have chosen an oversaturated niche without clear differentiation. Identify companies operating in your target niche. Research their terms and conditions. Think about how you can differentiate yourself from them. This will help you select a segment with growth potential and competitive advantages.

The BlooMLM team focuses on analyzing the market in advance and developing a unique positioning before launch. Only this will allow you to have a stable business in MLM, as competition in this industry is quite high. Specialists help new partners not only start their work in the industry, but do so consciously. Awareness includes understanding the market situation and the needs of the target audience. This approach allows you to avoid common startup mistakes. You will also be able to find a niche for yourself that has real potential and clear competitive advantages. 

The help of the BlooMLM team has allowed its partners to go from idea to stability. They were able to develop their business and scale up. You can do it too, just leave a request for a consultation.

Step 2. Develop a marketing plan

If the marketing plan is well-designed, it will motivate partners and enable the company to grow and expand. It is important that this plan offers benefits for each partner, is transparent, and well thought out. According to DSN, about 30% of leaders in network marketing earn more than $1,000 per month thanks to well-thought-out plans that include several types of bonuses.

What should you consider when developing a marketing plan? Here are the key points to focus on:

• The amount of bonuses and rewards should be based on sales, not on attracting partners. Payments based solely on recruitment turn a company into a pyramid scheme. And that’s a big risk for a startup.
• Different levels of bonuses and sources of income. Effective marketing plans include all kinds of rewards, including personal sales, team bonuses, and leadership payments. This will increase your partners’ motivation and make them more interested in working with you.
• Avoid coercion into mandatory purchases and hidden payments. If a company is honest, it will not force you to purchase a product for a large sum of money in order to generate income. It is important that it is possible to earn money only from actual sales, not from investments.

If you keep these points in mind, you will be able to achieve success and motivate your partners to work.

It is also important to understand what will differentiate your brand, what value it will bring to the audience, and how much demand there will be for the product. Studying companies that are already working in your niche will help with this. Research their marketing conditions, approach to partners, and product line. This will make it easier to determine what unique product you can offer. It is also necessary to develop flexible marketing and use a modern digital approach. This will allow you to gain a strong position in the market and have prospects for growth. 

The BlooMLM team provides expert support to its partners. At every stage, our specialists pay close attention to the tasks at hand. They analyze the market and competitors, help develop a USP, refine the product concept, and more. All of this gives you a competitive advantage.

Want to see how this assistance works in practice? Then check out the team’s case studies. From these stories of project launches and growth, you will see that our specialists were actively involved and helped various companies achieve sustainable income. Trusting professionals is always good for business.

Step 3. Legal registration and reliability

For a company to exist for a long time and be successful, the business must be legal. This is an important factor to consider. The transparency of the company’s operations will determine whether customers and partners can trust it. According to industry research, about 20% of complaints in MLM are related to an unclear legal basis and “offshore” registration.

Here are some points to consider when legally registering a startup:

• The company must be registered in accordance with the laws of the country in which you reside. If the business is officially registered, this will protect it from unpleasant claims from partners and regulators. This will greatly facilitate participation in the business.
• Provide clear terms of cooperation. It is important to clearly spell out the terms of payment in contracts so that they are understandable. Avoid hidden fees, as these often lead to conflicts.
• Do not register in offshore zones. Otherwise, you will raise doubts among your partners and clients. When a company is registered in a country with strict regulation of such issues, this will speak to your partners about your reliability.

Although such issues can be difficult to resolve, it is worth the effort. This will increase trust in you and you will gain more reliable partners.

Step 4. Creating a company brand

It is important for every company to stand out in some way, because there are many competitors. A strong brand helps with this. It also allows you to build trust with users. It will shape the perception of the company and attract new partners to the business. Research shows that 60–70% of potential partners first pay attention to brand recognition and company values.

What does brand creation involve? Among the important elements to pay attention to are the following:

• Name, logo, corporate identity. It is important to make your identity recognizable to as many people as possible. It is important that your logo is associated with something reliable and stable.
• Clear positioning and company values. For a company to be successful, it is not enough to just sell a product. It is necessary to offer customers and partners a specific lifestyle or the opportunity to solve certain problems. In other words, they should see the maximum benefit of working with you. 
• High-quality presence on social media and the internet. Develop a professional website, increase your activity on social media, and post expert content. All of this will ultimately build trust in your company and increase your audience reach. According to We Are Social, more than 4.76 billion people actively use social media, where you can quickly and inexpensively present your brand.

By considering these elements and working on them, you will be able to attract attention.

Step 5. Develop a business website and software

According to DSN, 80% of successful MLM companies implement comprehensive IT solutions for network management. Often, the effectiveness of an MLM company will depend on its IT solutions. If they are convenient and well thought out, they will ensure ongoing cooperation with partners and customers. What solutions are we talking about? Here are some options to keep in mind and use:

• CRM systems for customer and partner management. This is an excellent opportunity to automate customer service, record orders, payments, and interaction history. This allows for more effective network management. 
• Personal account for distributors. With their account, partners can manage orders, track rewards, and communicate within the team. 
• A platform for automating processes, including payments and analytics. This is exactly what you need to reduce the workload on administrators. It also allows you to guarantee the integrity of financial transactions and forecast company growth.

As you can see, such solutions can simplify the work of partners and make your job easier. At the same time, it is important not only to have these tools, but also to be able to implement them correctly and adapt them to the needs of your network business. For this reason, some entrepreneurs turn to BlooMLM for help. This team is not just developing solutions for businesses, but creating an entire strategic system. This allows companies to grow and develop. 

With the help of the BlooMLM team, you will be able to implement proven tools. Specialists will teach you how to use them to get the most out of them. For beginners, the advantage of working with the company is that they can quickly get to the heart of the business. Experienced distributors, on the other hand, have the opportunity to get good recommendations for convenient and transparent management of their structure. 

What do those who already work with the team say about BlooMLM? Find out from the reviews that will tell you more.

Step 6. Select a promotion strategy

The average time it takes for new MLM companies to reach stable profits is reduced from 2 years to 6–12 months if they actively use digital marketing. It is essential to have a competent marketing strategy. It allows you to attract more partners and customers to your business. As a result, the company scales up and the brand becomes more recognizable. What will help with this? Here are some proven methods:

• Social media and targeted advertising. Promoting your brand through Instagram, Facebook, TikTok, and YouTube is profitable. After all, it’s easier to find and identify your target audience this way. Advertising attracts reliable partners who are already interested in doing business. 
• Promotion through the founder’s personal brand. It’s easier to trust when there is a real success story. It’s better to conduct business publicly so that potential partners trust the project and the company’s founder.
• Content marketing: blogs, webinars, training programs. Practical and expert content attracts an audience. It helps you keep their attention. It also builds long-term trust in the company. 

These are effective methods, the main thing is to use them correctly.

Step 7. Partner training and team support

For a network to be successful, it is important to prepare its partners for work. Even if a distributor is very promising, sooner or later they will encounter sales problems. To avoid difficulties, it is important to provide quality training and support for partners. According to DSN statistics, about 60% of new distributors leave MLM in the first year if they do not receive regular training and support. 

Here is what an effective training system might include:

• Webinars and training sessions. Help your partners understand the product through regular online meetings. This will also help them master sales techniques and teach them how to build their own team effectively. 
• Access to training materials in personal accounts. Guides, video tutorials, and step-by-step instructions are what can help a newcomer adapt to the company faster and avoid costly mistakes.
• Mentoring and motivational programs. Newbies learn well and adapt faster when they have help from experienced leaders. And with bonus programs, you can motivate your partner to develop their skills and make more sales. Direct contact with experienced leaders increases network results by 15–20%.

Why is it important to turn to professionals to build a successful MLM startup?

Every moment is important when launching a network business. You will need a strategic approach and a good understanding of the industry. It is estimated that up to 50% of new startups close before reaching the break-even point due to a lack of expertise. It is also necessary to use modern tools. If serious mistakes are made at the very beginning, this often leads to large financial losses and, even worse, legal problems. The company will then grow slowly. This means that it is important to follow the advice of experts and entrust them with the key stages of building a startup. 

If you are looking for a company with extensive experience in network marketing, BlooMLM can help you. Professionals help entrepreneurs create the best business model that will deliver results and long-term prospects.

Here’s what the BlooMLM team can offer:

• Develop a marketing plan that takes into account market characteristics, partner motivations, and optimal reward distribution.
• Create software, including a CRM system, personal distributor accounts, and a platform for business automation.
• Legal support and advice to ensure full compliance with legal requirements.
• Comprehensive promotion strategies based on modern digital tools and content marketing.
• Training and support for partners to ensure that your network develops dynamically and sustainably.

Conclusion: what will help build a successful MLM startup

Building a successful MLM startup is not just about finding a product and registering a business. That will not be enough. Every stage of the work is important, from choosing a niche to supporting partners. To ensure business stability, a comprehensive approach is needed. Then the company will be able to continue growing, even despite high competition. According to DSN, it is a comprehensive approach that allows you to increase the growth rate of a new network project by 2–3 times and ensure its stability in a highly competitive environment.

BlooMLM is a team of professionals who will help you avoid common mistakes and build an effective network marketing system. Entrust the launch of a profitable MLM startup to specialists. They will develop a clear business structure and provide support at every stage. Achieve success with us!

If you need to scale your network, automate processes, and create a convenient platform for your partners, you can take the first step today. Simply fill out the application form below so that our team can contact you and discuss all the details. This will allow us to find the best solution for your company.