The Pros and Cons of Running a Multi-Level Marketing Business
When we talk about Multi-Level Marketing, it reminds us of the original Pyramid Selling. Although the Pyramid Selling got a poor reputation back in the day, Multi-Level Marketing is much more sophisticated.
Multi-Level Marketing, is also known as MLM, network marketing and direct sales.
To pull off a successful multi-level marketing strategy you must have a solid business plan. Herbalife is a prime example of multi-level marketing that’s a good business and brings in plenty of money for the initial founders.
What is Multi-Level Marketing?
I suppose you could think of it as referral marketing in a way. For example, the owner of a business has a product to sell, in this case, we’ll say a digital training course.
The owner wants the course to do well and bring her in plenty of sales. So, she enlists the help of avid followers of her website. She offers them a percentage of the cost of the course for every course they sell. These followers are now her referral marketers.
Now if the referral marketers enlist the help of other marketers to help them generate sales to make more money, then it’s Multi-Level Marketing.
It’s a marketing strategy that extends two levels deep, or indeed three or four. The primary focus of running this style of marketing business is to generate sales of the digital training course that the original business owner is selling.
Pros and Cons of Multi-Level Marketing
Finding the perfect business for yourself requires you to consider what you wish to accomplish from the business.
Becoming a multi-level marketer can provide you with the techniques you lack to run your business to a successful level. With the support of your marketing manager, you can either succeed or fail (depending on how efficient they are at their job) in the marketing world.
But the effort you produce will need to be at maximum capacity. Multi-level marketing is a style of business model that requires you to invest in everything you have, to make it work.
The Pros of Multi-Level Marketing
In any business, there is pros and cons with how that system works. It’s up to you to determine if you think the pros outweigh the cons.
If you think it’s a business you’d like to get involved in then great, go for it. But make sure you know all the facts and have read the small print before signing up for any business model.
• It’s A Way to Sell a Product That Gets Results – For example, Herbalife. The people who sell the product to earn extra cash do so because they themselves have had impressive results with the product. With their own experience of losing weight, they are perfect marketers for the product, thus making big sales for the company.
• It’s a Straightforward Way to Start a Business from Home – With no initial expense and just plain old hard work, you can choose a product you yourself believe in and have had remarkable results with using and market the product to make extra cash.
• It Can Solve a Childcare or Health Issue by Being Able to Stay at Home and Work – Many people, for whatever reason need to work from home, and having a networking business can offer them the chance to make money without leaving the house every day.
• Great Bonuses Can be Made from Marketing a Product Repeatedly – Companies give incentives to make higher sales by offering bonuses to the marketers with the highest sales. This incentive drives the marketer to hit their personal target and achieve the income they want.
• You Can be Given Plenty of Help to Achieve your Selling Goals – in Multi-Level Marketing, you will have a mentor or marketing manager to guide you through the steps in producing the best from your own marketers while accomplishing your own financial goals.
The Cons of Multi-Level Marketing
With any business, there are bad points of Multi-Level Marketing and good points to running this style of business.
Although not everyone will agree with you on the bad points of this marketing system, it’s advised to take these points on board before going ahead with any sales contract.
• It’s Not a Get-Rich-Quick System – You won’t make money overnight with this style of marketing. You will need to put in a lot of work to achieve the results you want.
• Many Products Need Face to Face Selling – The products that need face to face selling tend not to do well. Because this style of selling requires you to meet people, talk to them and persuade them that the product you’re selling is the right product for them, most people end up selling to their family and friends and make little money.
• You Need to be in it for the Long Haul – Multi-Level Marketing takes time to grow. You need to prepare yourself to give everything you have for your business to grow and experience any results.
• It Can Feel Like a Negative Business in the Beginning – You won’t have everyone jumping for joy at the thought of your product the first time you mention it. They say it takes the average person seven times to see or hear about your product before they’ll even think of it as something they could enjoy. So, getting quite a few rejections could spread negativity within your business and make you want to throw in the towel before you’ve even begun.
• There are Many Scams Online – If you choose the online option of running a Multi-Level Marketing business, make sure you take plenty of time to research the company you’re thinking of marketing. Even better if you’ve used the company yourself and had an amazing experience then you can be confident the company is legit.
As you can see, running a Multi-Level Marketing business can be a challenge. Yes, it can provide you with a secondary income on top of your full-time employment but you must prepare to apply all your energy and patience to make this style of business work.
Finding a marketing business that isn’t a scam can bring you significant volumes of stress and possibly lose you a lot of money.