What is MLM?
Perhaps you know someone who sells certain products to friends and family and tries to recruit other people to do the same. They're everywhere, especially on social media networks like Facebook. That's what MLM is usually about.
Multi-level marketing (MLM) is a form of direct sales where an independent distributor (sometimes called contractor or participant) sells products or services by telephone, in the customer's home, or online. It is also known as network marketing. It may also refer to consumer-direct marketing, home-based business opportunity, and referral marketing.
Sellers or distributors are rewarded for the sales they produce personally as well as by the people they recruit. The commissions you will earn are based on what your new distributors buy and their sales to retail customers. The goal of attracting new sellers is to keep the money steadily flowing into the business.
Sounds like easy money? Well, we're not done yet!
The Businesses Structure
The promoters of multi-level marketing might try to recruit you with pitches on everything you will learn. They may tell you can change your life by selling the products of a company they're working on. But of course, you have to shell out dollars first to get those products and earn some perks. Some companies may say you can get too-generous rewards, such as bonuses and prizes.
Your journey now starts here. You will begin hindering the social media feeds of your friends and relatives or come to them face to face and share your "new venture towards financial success." The more products to sell and the more people to recruit, the higher the payout.
So, is multi-level marketing worth it or just a waste of money?
Yes and no.
MLM can prove to be a good business opportunity if you are able to spot a reliable company that 'walks the talk.' This means all of those promised amazing incentives are real and not fake. And of course, patience and persistence are your keywords. Remember that earning money doesn't happen overnight. You have to wait and wait until the fruits start to grow.
On the other hand, multi-level marketing is a complete waste of money if it's a pure scam. So make sure to explore it first. Are the products or services being sold highly reliable? The company might be safe. What if it's requesting high investments without real return? That's where your instincts should alert you.
Those with "sweet tongue" or are well-communicative have an edge since you'll spend the time attracting potential buyers and new sellers.
Advantages & Disadvantages
Why you should try your luck in multi-level marketing and why you shouldn't?
- The products are high-quality. Take Avon cosmetics, for instance.
- Low investment to start with. You can spend as much as $200 or even below to enroll the marketing system and eventually earn a 6-figure per year (yes, seriously!), providing, of course, to put your soul in work.
- The time is all yours: no time outs and no prying eyes from a competitor.
- It can be your excellent way to start your own business at the right time.
But on the dark side...
- There are several scams. So, be mindful!
- You'll experience lots of rejections (and that's pretty normal).
- It takes time before seeing concrete results. Be committed and patient. That's what matters most.
To conclude, MLM is a good investment which anyone can benefit from if you have the right attitude and clear goals in mind. Just don't expect to get rich with it, and don't believe distributors that claim such. Again, it depends on your hard work.
Does the idea of involving in MLM ever occur in your mind? What's your other side of the story? Share us what you think with our comment section below!
