How to write a Network Marketing business plan – best practices example (Part 2 of 3)
- Articles, Blog

How to write a Network Marketing business plan – best practices example (Part 2 of 3)

Welcome back. My name is Lee Matthews. In this video, I’m going to explain why a Business Plan is your best IRS audit defense and we’ll continue to examine my Business Plan’s Table of Contents and view each page’s content. Let me begin by explaining what’s going to take place during an IRS audit. During the audit, you’ll absolutely be asked two questions: The first — Do you have a Home Office? The second — Do you have a Business Plan? You must be able to answer YES to both questions or, per Section 183 of the IRS Code (the so-called “Hobby Loss” Rule), you’ll be at risk of performing a “not for profit” activity rather than operating a business. If that’s the finding of the tax court, you’ll be liable for all the business deductions you claimed, plus penalties. So let’s continue where we left off in our Business Plan’s Table of Contents. With a Network Marketing business, one of your main goals is to develop a Marketing Team to leverage your efforts. During an audit, an IRS examiner wants to confirm that you have the expertise necessary to build your business. The Training section of this Marketing Strategy really shines in that respect — you’ll be able to demonstrate to the IRS how you’ve incorporated expert advice into your Marketing team’s training methodology. We use 4 well-known Network Marketing experts:Robert Kiyosaki, author of The Cashflow Quadrant, Denis Cauvier and Alan Lysaght, authors of The ABCs of Making Money and Lou Abbott, author of MLM The Whole Truth. The Recruiting Fundaments portion of this Training section teaches our Marketing Team how to effectively present a Business Opportunity. In the Record Keeping section, this Business Plan delineates how our Marketing Team is trained to be in full-compliance with all IRS record-keeping directives and mandates Also highlighted are the tools and resources that help our Marketing Team do that. Success in any business depends on Personal Development. In the Personal Development section, we lay-out the business success formula which we and our Marketing Team members follow. Mastermind Sessions are a key aspect of our team-training effort and we highlight what’s involved as the final element of our Training methodology. The IRS wants to understand how this business’s Marketing Strategy affects its business process. Any Marketing strategy involves a Paradigm, or framework, around which its activities are structured. This section of the Business Plan explains how our marketing process and sales funnel allows us to quantify our results, spot problems and take corrective actions early. A business uses its marketing communications to transmit information within a given market to its prospects and customers. Marketing communication has two objectives — to create and sustain the demand for a product or service and to shorten the sales cycle. MARCOM involves every facet of the marketing and sales process and the delivery format takes various forms depending on the communications media being used — hence the reason why that information is described in this Business Plan. The final item covered in this 2nd video will be the Marketing Tools that are used to fill the marketing and sales funnel. Those tools differ depending on whether we’re communicating with our warm market or our cold market. Now, just like we did in the last video, let’s examine each half-page of this Business Plan, in random order, so you’ll gain a greater understanding of what an MLM Business Plan should contain. I’m sure that the contents of these pages will spark a host of ideas of how to modify this Business Plan to reflect your own Direct Sales Business. Once again, I’ll show a random Table of Contents line item followed by a half-page view of the information being provided. Don’t forget to pause the video whenever necessary to read all the text on each page.

About Ralph Robinson

Read All Posts By Ralph Robinson

1 thought on “How to write a Network Marketing business plan – best practices example (Part 2 of 3)

  1. Hi there, I enjoy your video and found it to be really informative. I have subscribed to your playlist. Looking forward to learning more from you.

Leave a Reply

Your email address will not be published. Required fields are marked *