And although much has been said about them and there are thousands of pages on the Internet that talk about the negative aspects of this kind of systems, it is also fair to recognize that there are many men and women around the world who, thanks to multilevels, have reached the desired level. financial freedom and today they enjoy a much more than comfortable life.
For those unfamiliar with the term, a multilevel marketing business it has to do with marketing products through a network of people who support each other to build a residual profit system.
This means that as your partner networks grow that way, so do sales and revenue. Generating among them a very interesting dynamic of joint growth that translates into great financial benefits.
Some of the most serious and successful multilevel companies that I know are Quixtar, Avon, OmniLife, Amway Y MaryKay. (Among other).
Of course not all of them have the same model and even some of them are considered only direct selling companies instead of network marketing systems.
Hence, a good entrepreneur with the ability to analyze and see beyond the negative comments of people will be able to find in this business alternative an extremely attractive option that may be the option you are looking for to start a business. entrepreneurship low cost and that requires few hours of your time.
In this post I present an analysis as impartial as possible about MLMs summarized in 5 advantages and 5 disadvantages so that you can draw your own conclusions and decide if this could be one of your potential investment options.
To begin I will say that in multilevel market businesses The products or services are marketed through networks of people who register in the system and where each person obtains greater benefits according to the growth of their personal network or the number of referrals who buy or register in the system.
Hence its name “multilevel“or multilevel marketing systems.
While it is true that the system in its legitimate conception is very intelligent and allows people (as well as the company) to obtain good income, unfortunately bad experiences are the product of people who in an excessive desire for ambition or “quick wealth” They pervert systems causing not only the desired results not to be obtained but along the way many people are left with a bad taste of having been part of the network of someone who did not know how to lead them to success.
Here are the 10 points for and against MLM systems.
5 Advantages of multilevels:
- The initial investment is quite comfortable and affordable compared to the income potential that can be obtained. You usually buy a starter product kit that can even be recovered with the first few sales.
- You do not need to have a formal company infrastructure such as premises, employees, inventories, warehouses or a formal commercial base.
- You can start at any time and develop your business at the rate you want according to your activities and time availability.
- There are a variety of network marketing systems to choose from such as: vitamins, cosmetics, clothes, books, the Internet, etc. You can choose the product line that is of your greatest interest.
- Develop a network marketing Over time it can represent very substantial income and even travel, residual earnings and royalties.
5 Disadvantages of multilevels:
- The network marketing systems they usually require attending meetings, seminars, and special events fairly frequently in order to promote team building, a positive attitude, and an entrepreneurial spirit. While this is part of a corporate culture, many people consider it a nuisance.
- If one does not have patience and does not rigorously follow the methodologies and procedures of the MLM systems, you risk simply wasting your time and money. If you have the patience, you can win both.
- Unfortunately there is a lot of pseudo-leader running network marketing. People with little tact, preparation and usually with excessive ambitions. It is difficult to recognize who can truly guide you correctly to build a successful business.
- Some regular investment is required in books, audiovisual materials, courses and the consumption of products that are part of the system. This helps to know the products and understand the systems, however although this is necessary we do not always appreciate the immediate benefit.
- Many times the network marketing systems They require that certain minimum sales goals be met to obtain the points and benefits, which if not reached, cause some frustration in the Independent Business Owner.
Finally and as a conclusion, I will mention that network or multilevel business, They are having great success in several countries in Europe, in India, the USA and China where people are less distrustful and therefore achieve better results in these endeavors.
So if you are part of a multilevel business or are you considering being a part of one, then your chances of doing very well are high. Perseverance, an open mind and smart work are key elements in these business models.
And if that wasn’t enough, the Internet means that today there are many prospecting tools that could boost your business to unimaginable levels.
As I always clarify, the fundamental basis for success in this and any networking business It is to respect the systems and comply with them according to the indications of your leaders who will already have more experience and vision in this regard.