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The costs of startup vary widely, depending on the type of product/service being offered and the need for infrastructure. It is obvious that a company which is engaged in its own manufacturing, ownership of warehousing and distribution facilities, etc. will expend much more than a company which is furnished by suppliers of private label products or is involved in a service-type product. With respect to the initial infrastructure costs of a startup MLM, it may be reasonably expected that a company will expend, during the first year, $100,000-$200,000 for four key infrastructure elements:
1) Legal
2) Software
3) Compensation plan design
4) Creative design for online and offline promotional materials
Beyond these costs, the variables are far too extensive to predict without the development of detailed pro forma projections. Companies that are looking to launch very quickly will also need much more funding, while slower-moving launches will take more time but perhaps not involve as much initial capital investment.
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