Earthly Clean is a new start-up that sells environmentally friendly cleaning products using multi-level Marketing (MLM). Devon McGregor founded Earthly Clean. The company has been registered in Illinois as an LLC.
The Products
Earthly Clean sells all types of non-toxic, eco-friendly cleaning supplies. Earthly Clean has reached a contract with a major manufacturer of cleaning supplies to produce a complete line for private label products. Product prices will be quite competitive since Earthly Clean is buying direct from the manufacturer. Earthly Clean will also benefit from the manufacturer’s willingness for Earthly Clean order as small as $150. This will assist Earthly Clean in their goal of efficient inventory management. The first product line will include an all-purpose soap and bathroom cleaner. Earthly Clean products are competitively priced and of the highest quality.
The Market
Earthly Clean products will be sold to two customers segments. Individual consumers who purchase the products for their own (household) use are the first segment. These consumers are concerned about the environment and are searching for non-toxic cleaners to clean their homes. This group is made up of young, politically-liberal people who are keen to make an individual contribution towards the betterment and protection of our environment.
The second target market segment is a group selected from the individual customers. Some of these individuals can be recruited for distribution 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. This segment pays a commission to the distributors who are able recruit new distributors and make sales. This is how MLM business models work. Earthly Clean sells directly to consumers. Some consumers are then made into distributors and earn revenue for Earthly Clean. Distributors can then make money by attracting more sales people.
An Efficient Distribution Model
This distribution model is efficient and effective. The products are bought private label directly from the manufacturer, ensuring high quality and low prices. They are then delivered directly to the consumer. The traditional bureaucratic distribution model, which generates huge corporate profits, is now gone. MLM businesses often get confused with pyramid schemes that are illegal in America.
Pyramid schemes offer compensation for new salespeople. The promise of financial rewards is made to people for referring more people, regardless of the sales. This is the critical distinction regulators look at when determining whether a business is a pyramid scheme. It is the way that compensation is rewarded. It is illegal if it is based upon recruitment. Earthly Clean pays distributors for sales. This is to ensure that the distribution and sales channels are efficient and effective.
Earthly Clean is an innovative new business that channels people’s passion to make a positive impact on the environment. They also have the opportunity to make a profit while sharing their passion with family and friends. 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 those years will be 4.19% and 8.66%, respectively.
1.1 Mission
Earthly Clean’s mission involves the creation of a sustainable distribution company that makes use of grassroots and network marketing to sell the product. Earthly Clean exists in support of its members and to protect the environment.
1.2 Objectives
- To start a company that is profitable and sells environmentally friendly cleaning products.
- Create an organization where sales are rewarded to individuals who refer others.
Success keys 1.3
- Distribute only the highest quality products that are also environmentally friendly.
- Rehire new employees to help with the sales of the product.
- Establish the company on solid foundations of integrity.
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