How much will it cost to fund your MLM Company?


Starting a new company is like jumping on a swimming pool. The water stands for money so don’t jump on the pool with out the water because it will hurt you. Jump on the pool with water will make you able to swim but with out experience; not knowing how to swim will make you drown. Don’t jump on the pool with out knowledge or start your MLM with out knowing how it works.

The typical MLM business needs products, systems, management, legally registered and office to handle transactions. Let me show you how to estimate the starting fund for new business or MLM Company.

Business Registration

The first thing to do first is to register your company for legality. It will only take time and effort to do this. This can cost you not less than 25,000.00 to process your SEC, DTI, Barangay Permit, Business Permit, BIR Registration, and Product Registration like BFAD etc. Also consider how much you can fund your bank for bank certification needed in your applications.

Information Technology Infrastructure

Develop a good system that will help you to monitor and track everything in your business. Your accounting, product inventory, sales record, members’ information and payout incentives must have a good database to reference. You can outsource the system from Software Companies and make them your provider if you can afford their price. When you are looking for cheaper price, look for freelance developer and the also provide good system not less than 200,000.00.


Check how many products must be sold out to cover up the company operational expenses every month and it will be basis how much is your minimum fund for the products. Let say that your company expenses are about to be 100,000.00. When the company gets the 10% from product cost for the operational expenses then you have to fund 1,000,000.000 worth of inventory sales to be sold out every month.

Management Team

You and you’re team must be compensated fairly. The key people in your management team are the board members, lawyers, accountants, IT Professional, and Marketing Leaders. You can fund at minimum salary rate of 20,000.00 each key person. Make them satisfied and they will work accordingly.

Office Maintenance

You can start with small office then move to the bigger space when you’re company is ready. Find the space where you can have training room, stock room, comfort room, and private rooms for office works and meetings. Prepare your budget for electricity, water, rent, and other miscellaneous bills. Let’s say that we have to fund 100,000.00 – 250,000.00 for office space and other bills. Make your office location accessible and easy to navigate.

Now you have the idea how must will cost it you to have your own MLM Company. This budget will be a good start for starting new business. It will always depend on your management and marketing team to make more sales. With out sales your company must add more funds or invest more money to survive.

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