Reseller
Reseller
Safety Shoes Reseller Business Plan with Downline-Level Commission Structure
1. Executive Summary:
Business Name: [Your Business Name]
Business Type: Safety Shoes Reseller with Multi-Level Marketing (MLM) Structure
Mission Statement: To provide top-quality safety footwear while empowering resellers with a rewarding commission system.
Objective: Establish a robust reseller network across Malaysia, achieve profitability within 12 months, and create a sustainable downline-based income system.
2. Business Opportunity:
Safety footwear is in high demand due to stringent occupational safety regulations. By incorporating a downline commission system, we can create a motivated sales force that drives growth and ensures widespread market penetration.
3. Products and Services:
Product Range:
- Steel-toe and composite-toe safety shoes
- Slip-resistant and waterproof boots
- Electrical hazard (EH) footwear
Reseller Packages:
- Starter Kits: Initial inventory, marketing materials, and training
- Bulk Discounts: Tiered pricing based on order volume
- Custom Branding Options: For corporate clients
4. Downline Commission Structure:
Commission Levels:
- Level 1 (Direct Sales): Reseller earns 10% commission on personal sales.
- Level 2 (Recruit 1st Downline): Earn 5% commission on sales made by their direct recruits.
- Level 3 (Recruit 2nd Downline): Earn 3% commission on sales made by downline’s recruits.
Example:
If Reseller A sells RM10,000 worth of products:
- Reseller A (Level 1) earns RM1,000 (10%) from direct sales.
- If Reseller A recruits Reseller B, and B sells RM5,000 worth of products, A earns RM250 (5%).
- If Reseller B recruits Reseller C, and C sells RM3,000, A earns RM90 (3%).
Bonuses:
- Monthly Performance Bonuses: Extra 5% for top performers exceeding RM20,000 in sales.
- Recruitment Bonuses: One-time RM200 bonus for every 5 new active resellers recruited.
5. Market Analysis:
Target Market:
- Construction and manufacturing industries
- SMEs and large corporations
- Individual safety gear resellers
Competitive Advantage:
- High-quality products meeting Malaysian and international standards
- Attractive commission structure for resellers
- Affordable startup costs and high profit potential
6. Marketing and Sales Strategy:
Reseller Training:
- Online and in-person training sessions
- Provide marketing materials, including brochures and social media templates
Online Marketing:
- Use social media platforms to recruit resellers
- Launch an e-commerce platform with a reseller login portal
B2B Sales:
- Direct outreach to companies for bulk orders
- Offer incentives for corporate referrals
7. Financial Plan:
Initial Investment:
- Inventory procurement
- Website and reseller portal development
- Marketing and recruitment campaigns
Revenue Streams:
- Direct product sales
- Bulk sales to corporate clients
- Reseller package sales
Projection:
- Break-even within 9-12 months
- Profit margin of 20-30% in Year 2 due to downline commission-driven sales growth
8. Risk Management:
- Recruitment Challenges: Mitigate by offering competitive incentives and continuous support.
- Inventory Management: Utilize just-in-time (JIT) inventory to avoid overstocking.
- Compliance: Ensure all products meet MS ISO 20345 and DOSH regulations.