Writing Your Direct Sales Marketing Plan – Samples
|In the corporate world all businesses have a marketing plan in place.
A system that works in one business will work in other businesses as well.
Utilizing a direct sales marketing plan is a sales strategy that always generates success.
All successful businesses are based in a solid well-written business plan that includes how they plan to market their business.
As direct sales and network marketing professionals, we are no exception. Without a written ACTION based business marketing plan in place, success will be elusive because you have not mapped out your course(s) of action.
EVERY successful business has a sales marketing plan and so should YOU!
Click here to jump straight to sample marketing plans
Click here to jump down the page to IRS Compliance.
This image is the results of our ongoing survey regarding consultants and their direct sales marketing plan or lack of one. Click here to get to the survey quickly.
Marketing Plan For Small Business
Marketing a small business like a home party plan business is just like marketing any other business model.
You must have a plan, take action and create desire for your products, opportunity and services. When you put systems into place that create desire you will begin to attract people who want what you have to offer.
It is easy to find business for your home party plan business when you put simple systems in place.
Your direct sales marketing plan is a strategy that creates a cycle of actions that will grow your business.
It will include systems that cycle through the following:
- Your Goals, Mission And Intent
- Business Actions And Activities
- Documentation Of Activity
- Earn A Commission & Reduction In Income Taxes
Please note that the above system indicates intent to profit*.
The business does not have to show a profit.
You must only show that you intend to profit.
The cycle goes like this: Intent –> Activity –> Documentation –> Tax Savings & Commission –> WOW! That was great! Let’s do it again!
The Power-UP Home study is a direct sales and marketing training program that includes an IRS-compatible business plan template written by my friend and tax expert direct sales accountant Steve Spangenburg.
How To Write A Business Plan For IRS Compliance*
When you write your business plan, keep in mind the three main goals of a business plan. It serves three very important purposes.
1. IRS compliance = Reduce income tax liabilities. You are entitled to all the deductions you earn and it is important to have a business plan in place to show that you are a serious professional.
2. Gives you a clear picture of why you are in business = Create direction, clarity and purpose for the company.
3. Gives you a road map to business success = A written business strategy or plan is a system of achieving your goals. Like a road map, it will give you clarity and guide you on your trip.
Your business plan is a perpetual work in progress. It will change from time to time.
Your Direct Sales Marketing Plan Allows You To Pay Less Taxes!*
Being a direct sales or MLM sales consultant is like having two streams of income.
- One is the commission on the sale of the product or service that your affiliate company offers.
- The other is the legal reduction in income taxes your household owes as a result of being in the business of networking.
Hence, your “job” brings in income by generating sales and it retains income by reducing tax liabilities.
The system of intent, activity, documentation and results is what makes it happen. Who wouldn’t want to reduce their income tax liabilities at the same time that they create income?
The Home Office Tax Deduction*
The home office deduction is also something that many home business owners are afraid to take advantage of. A good business plan is written in such a way as to be the shield that protects you from the IRS.
This is usually foremost on peoples’ minds between January and April but it is something that should be considered all year!
I often hear people say that they do not want to take the home office deduction because they do not want to send up a red flag to the IRS. Or, even that they were told by their accountant that they should not take it!!!
Well, that is hogwash… If your accountant said that then maybe you should get a new accountant! (Read how to pick a tax accountant.)
The IRS does not operate on a flag system. They have very specific rules and provided you follow them (no matter what country you live in), then all will be well.
The IRS looks at several factors when determining if you have a home business and are eligible for the home office deduction.
They are looking for your intent, your activity and the documentation.
- INTENT to profit. That doesn’t mean you have to have a profit, it only means you must show an intent to profit and not show expenses that are disproportionate to your income. A written direct sales marketing plan shows an intent to profit, even if you show no profit.
- The next area the IRS is looking for is ACTIVITY. You are not eligible if you do not take ACTION!!
- RECORD KEEPING is the third thing that the IRS is looking for. This proves your actions and includes things like: mileage logs, calendars, checkbooks, basic documentation of your actions.
These three things combined with your written business plan will ensure that you are in compliance with IRS rules when you take the home office deduction.
Reduce Income Tax Liabilities*
The MLM-er is entitled to more deductions due to the nature of the business.
A good MLM rep is always promoting and networking everywhere they go.
Every person you encounter is either a potential customer, sales rep or source of referrals.
Based on IRS code this allows us to convert otherwise personal expenses into business deductions. Many networkers take the income reduction strategy of the business for granted and just willy-nilly look for and take any deduction they think of.
This is not a good business practice. Your networking activities need to be documented and legitimate. Don’t leave money on the table and always be ready for an audit!
*NOTE: While we are referring to the US tax code by mentioning the IRS – most developed nations have some variation of the tax codes discussed. No matter what country you live in, you should always check with a professional to discuss your personal situation.
Other Resources On Writing A Direct Sales Marketing Plan
- The Power UP For Professional Results direct sales and marketing program includes an IRS home business accountant approved-business plan template in the training program downloads and on a data disc for easy editing.
- The article includes an audio recording on writing a direct sales business plan from a past radio show.
- Another article on the direct sales consultant and the home office deduction.
- A list of just a few of the direct selling tax deductions.
- Read how to pick a tax accountant if you are doing your own taxes or your accountant said no!
Example Of Your Business Plan
Download this example of the first page of the IRS-approved direct selling marketing plan.
The full business plan template is included in the Power UP For Professional Results direct sales and marketing program.
When you start writing your marketing plan you should start with your Business Structure such as this: (Modify this example to your situation.)
“I am operating as an Independent Representative of the MyFantasticCompany direct sales company. I started this business on April 15, 2003. I will operate as a sole proprietorship for income tax purposes.
The name of my business is MyName’s MyFantasticCompany. This name is registered with the state of PA.
I have started my business with the intent to profit from sales of retail items as well as override commissions from xyz company for sponsored recruits.”
Next comes your Mission Statement, followed by the Active Participants which may include family members whom you will pay out moneys to for work contributed to your business. Then put a section in on your Home office & Car, for example:
“The mission of MyFantasticCompany is to teach MyFantastic skills, and make a difference in the lives of others now and into the next generation. I will do this in such a way as to make a positive impact on someone’s life each day. I strive to achieve MyFantastic goals with by…. whenever possible. MyFantasticCompany’s specific areas of focus are on education and training of others in the areas of….
The MyFantasticCompany direct sales company provides no office space to operate my business. Therefore, I will set up an office in my home.
All marketing and sales functions will be performed from my home. I will have a designated area in my home in which to operate.
Such essential items include, but are not limited to, a computer, desk, fax machine, internet connection, and a phone line. Products that can be purchased from my company will be used and displayed in my office and home. This shows potential customers that I use my products and support my company.
My entire family is involved in my work at home business. I plan to have the following people actively participating in my business:
Husband Pete LastName - will help me promote my business both at home and in his workplace. He will accompany me on business trips and to the national sales convention. He may also make deliveries…..
Daughter Jenny LastName – She will be responsible for many activities around the home including stuffing envelopes, stamping catalogs…. “
The following are other categories that you should include. Go into as much detail as possible thinking about who, what, when, where, why, how often, and how many, steps and actions to be taken to market your business in all of these categories:
- Mission Statement
- Start Date
- Overview Of Strategy
- Start up Costs/Ongoing Costs
- Marketing Plan & Sales Projections
- Business Activity Including Recruitment Goals and Sales Volumes, etc.
- Documentation & Record Keeping
- Business goals
Do you have a sales and marketing plan in place for your home business? No business is too small!
If not, then why not?
A business plan is one of the best-business-practices that all successful businesses utilize.
A home party or network marketing businesses should be no exception. You will have a much more difficult time achieving your goals without a road map to get you there.
Please Take Our Direct Sales Marketing Plan Survey
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