MLM Cleaning Products Business Plan

Earthly Clean

Executive Summary

Earthly Clean is a start-up organization using the multi-level marketing (MLM) business model to sell environmentally friendly cleaning products. Earthly Clean has been founded by Devon McGregor. The company has been registered as an Illinois LLC.

The Products
Earthly Clean sells a complete line of non-toxic, environmentally friendly cleaning supplies for all possible household uses. Earthly Clean is finalizing a contactual agreement with a major cleaning supply manufacturer for the production of a complete line of private label products. Product prices will be quite competitive since Earthly Clean is buying direct from the manufacturer. Another feature of this relationship which is of significant value to Earthly Clean is the willingness of the manufacturer to allow Earthly Clean to place orders as small as $150. This will assist Earthly Clean in their goal of efficient inventory management. Products that will be part of the initial product line include: all purpose soap, bathroom cleaner, basin/tub and tile cleaner, detergent, window cleaner, bleach, laundry liquid and a variety of different air fresheners. Earthly Clean is able to offer competitively priced products that are of the highest quality.

The Market
Earthly Clean will sell products to two customer segments. The first segment are individual consumers who are purchasing the products for personal (household) use. These individuals are environmentally conscious consumers who are looking for non-toxic cleaners for their home. demographics for this group are younger, politically liberal people who are interested in making an individual contribution to the betterment of our environment.

The second target segment is a select group from within the first segment of individual customers. Some of these individuals will be recruited to become distributors of Earthly Clean products. A distributor is a person who sells the Earthly Clean products on their own to their own set of customers. This segment is taken from the actual consumers that purchase and use products. This creates a sales force that passionately believes in the products that they sell. The distributors that make up this segment receive a sales commission if they are able to recruit new distributors who then make sales. This is how the MLM business model works. Earthly Clean sells to consumers, some of those consumers then become distributors earning revenue for Earthly Clean as well as themselves. If these new distributors attract more people to sell, they then make money on their specific sales as well as money on everything that their recruited sales people sell.

An Efficient Distribution Model
This is an efficient and effective distribution model where the products are purchased private label direct from the manufacturer ensuring the highest quality and low prices. They are then sold direct to the consumer. The traditional bureaucratic distribution model with huge corporate profits is eliminated. MLM businesses are often confused with pyramid schemes which are illegal in the U.S.

Pyramid schemes are business forms that offer compensation specifically for the recruitment of new sellers. People are promised economic rewards for the more people they recruit, independent of what these people sell. Herein lies the crucial distinction that regulatory authorities analyze when determining if a business is a pyramid scheme: the way compensation is rewarded. If it is based on recruitment it is presumed illegal. Earthly Clean only compensates distributors for sales, an effective and efficient sales and distribution system.

Earthly Clean is an exciting new business that channels individuals’ passion for making a positive contribution to the environment and the ability to make money while sharing this passion with friends and colleagues. By carefully using the efficient multi-level marketing business model, Earthly Clean will quickly generate sustainable revenue. Sales forecasts indicate that sales for years two and three respectively will be $90,000 and $125,000. Net profit for the same years will reach 4.19% and 8.66%.

Mlm cleaning products business plan, executive summary chart image

1.1 Mission

Earthly Clean’s mission is the development of a environmentally friendly distribution company that uses grassroots and network marketing techniques to sell the product and make a meaningful contribution to the environment. Earthly Clean exists to support its members and to support the environment.

1.2 Objectives

To create a profitable company that sells environmentally friendly cleaning products.
Design an organization that compensates individuals for sales made by other people that they recruit.
Design a more efficient marketing machine that does away with the inefficient traditional distribution systems.