MLM Water Filter Business Plan

The Water Factory will be aggressively courting personal contacts. Once contacts have been turned into customers, Aitch Tuoo will then attempt to turn them into sales agents for him. The advantage for them is that they get products at wholesale and receive recurring revenue for sales people they recruit. The Water Factory benefits as it gets the recurring revenue for all sales that are made by Aitch’s customers or the sales agents of his customers. It is a win-win situation and can be easily presented as such.

Competitive Edge

The Water Factory’s competitive advantage over regular outlets of water filtration systems is the ability to generate revenue streams for sellers of the products. This is the virtue of the network marketing system. With network marketing, if buyers becomes sellers, they can receive their products at wholesale pricing and receive a commission for products that they sell. Additionally, if they recruit people to help them sell, they get a commission for every sale that their recruits make. At the same time, Aitch gets a commission of his recruits as well as his recruit’s recruits. This is a relatively easy way to create a recurring revenue stream and creates a competitive advantage that will help gain market share.

Sales Strategy

The Water Factory’s sales strategy will be based on leveraging personal contacts. Typically, an informal meeting will be set up with the prospective customer. A brochure will be introduced with product information about the water filters. Then, quantitative information will be introduced explaining really how much people are spending on bottled water and how much money could be saved by using a water filter. Additionally, Aitch Tuoo will explain how all problems, concerns, delivery, and billing will be handled by him. The ideal situation will be that Aitch Tuoo will be able to sign the customer up right then. 

During that initial meeting if the prospect is especially excited about the idea, or at a later date, Aitch Tuoo will introduce the option of becoming a member of The Water Factory. If the customer understands/believes the cost effectiveness of the Water Genie product, they will appreciate the option of getting the product at cost and making a commission on sales that they make, as well as commissions from sales that their recruits make.

Sales Forecast

The first month will be spent setting up the home office. There will be no sales activity. Additionally, Aitch Tuoo will be ordering products to use as samples.

The second month will be the first month of sales. During this month Aitch Tuoo will have signed people up and revenue will be trickling in. It will not be until month five when revenue begins to get strong. Month six will be the first month when the recurring revenue will come in from Aitch Tuoo’s recruited sales people.

Milestones

The Water Factory will have several milestones early on:

1. Business plan completion. This will be done as a road map for the organization. While we do not need a business plan to raise capital, it will be an indispensable tool for the ongoing performance and improvement of the company.
2. Office set up.
3. First recurring revenue to come in.
4. Profitability solely from recurring revenue.