Multi-level marketing is a legitimate business structure with thousands of independent owners worldwide. Unfortunately, MLM companies have gotten a bad reputation due to being confused with illegal pyramid schemes. The difference between the two in simplest terms is that an MLM offers a real product for sale whereas a pyramid scheme does not.
Like all independent businesses, turning a profit with a multi-level marketing company will require some investment and a lot of work. Additionally, in order to succeed you will need to be very comfortable and highly skilled at selling. If that doesn’t make you nervous, and you are interested in going into business for yourself, MLM may be something that interests you. Here are a few tips about what you should be looking for in an MLM opportunity.
Find a Product You Believe In
You will be spending a lot of time learning about your product and marketing it to others. It is essential that you believe in what you are selling and will eventually ask a downline to sell. There is a good reason why so many of the most successful network marketers started as customers. If you are passionate about a product that has been beneficial to you then it will be much simpler to promote it to others.
If you’re unsure of a product, look to your interests. For example, if you have a passion for health and wellness, LeVel is a nutrition-based MLM that has been in business since 2013. A simple internet search for LeVel Thrive reviews will reveal that they have an impressive rate of customer satisfaction for their products.
Look for an Established Company
New businesses pop up every day, the MLM industry is no different. If you are preparing to invest your time and money into a business, you want it to have a history of success. Do your research and only go into business with companies that have been around for a while, have demonstrated a market for their product and have a reputation for being honest with both their customers and their distributors.
Research the Numbers
Each MLM company will have different start-up investments and offer various levels of gross profit and discounts on products. Companies that require exorbitant initial investments and low levels of profit on actual sales may be suspect.
For instance, Mary Kay, one of the oldest and most successful MLMs, offers its consultants a gross profit of 50% on any products sold. Nu Skin, a network marketing company in business since 1984, has no minimum investment required to start as a distributor. Conversely, DoTerra, another MLM success, has start-up costs that range up to nearly $3,000 but they have overwhelming customer satisfaction and a stellar reputation. You’ll need to identify what start-up investment you are able and willing to make.
Be Realistic In Your Expectations
As with any small business, you need to decide what your income goals are and what level of time commitment you can make before you start.
If you simply want a little extra income, then a part-time commitment to becoming a distributor for an established company with a great product might be enough. However, if your goals are more expensive, you will be looking at considerable time investment and you will definitely need to expand from simply selling a product to recruiting and supporting a successful downline. Financially successful MLM professionals must be excellent salespeople, inspirational speakers as well as possessing an impressive work ethic.
Essentially, the requirements and challenges for being successful in network marketing are no different than beginning any other business. The fact that you will need to invest time and money and that success will only come after a period of effort does not mean that the MLM opportunity is invalid in some way. Before you move forward you’ll need to assess your comfortability for the work required, identify an established parent company, find a product that you are passionate about and set realistic business goals.