Living within our emergent Networked Age – when alliance equals life and valuable relationships can form in a second’s click – can offer untold opportunities for the savvy 21st-century entrepreneur, particularly in multi-level marketing (MLM).
When it comes to the ever popular distribution strategy, also known as network marketing, the ability to maximize benefits has never been more accessible, especially for young and ambitious distributors. With over 18 million Americans involved in direct sales and adding $34 million to the economy in 2014 the attraction is steadily growing.
So what is it, exactly? And how can you benefit from home?
A “multi-distribution company” means any person, firm, corporation, or other business entity which sells, distributes, or supplies for a valuable consideration goods or services through independent agents, contractors, or distributors at different levels wherein such participants may recruit other participants and wherein commissions, cross-commissions, bonuses, refunds, discounts, dividends, or other considerations in the program are or may be paid as a result of the sale of such goods or the recruitment, actions, or performances of additional participants.
So in a business strategy where recruitment offers greater profit potential, the internet has become a powerful tool to drive and sustain growth for the persistent, strategic distributor.
And that’s just the beginning.
Let’s see the complete list of major benefits of MLM for today’s home-based entrepreneurs:
Internet & open digital landscape
The sheer scale of the internet is one of marvel. So too is it’s functionality for MLM distributors. Social platforms for professionals – including LinkedIn, Branded.me, and Angel List – have revolutionized the ways we cultivate valuable relationships.
A hungry 21st-century distributor is no longer hindered by the time lapse of face-to-face meetings; rather, he or she can scan thousands of profiles, pages, and groups to vet distributors in a growing downline. From viewing credentials and interests to finding shared connections, introductions can be made to get important conversations started. In this space, your business is a 1.) People business, 2.) Business of appointments, 3.) Business of helping consumers find what they have the need for, and 4.) Business of helping others create businesses. Employ your network tools and talk to prospects!
Moreover, describing your product can also be enhanced by new forms of media to train, engage, and motivate your downline distributors. Pitches will always be necessary: A well-crafted reason for your product’s value, your target market, and the need to communicate in-person are here to stay. However, this more open digital landscape offers greater chance for connecting with interested distributors, highlighting your past work own professional value (including through portfolio compilations) and increasing overall earnings.
Low Cost of Entry/Low initial operating costs
Unlike many other mainstream business strategies that include high initial entry costs and sustained operating costs, network marketing is quite the opposite.
Traditional “brick and mortar” businesses require a much greater financial investment, including that upfront costs on a physical business (including permits and licenses), labor, and maintenance and infrastructure costs, to name a few. The decentralized nature of MLM allows distributors to save by reallocating costs to solely purchasing the product and training/engaging other distributors.
For a product-centered direct sales company, where the product generates compensation and bonuses, expenses include the cost of a starter kit, marketing, gathering/partying hosting, office supplies, a website domain and maintenance, and travel expenses. These costs for a well-launched campaign could begin at $1000+/annual, but are extremely low relative to traditional brick and mortar.
The network marketing model also benefits incoming distributors by not limiting them to a single physical location (and, by extension, one single market). This accessibility, enhanced by internet communications, extends itself to anyone willing to try regardless of geography. This cuts down risk for all parties while enticing new distributors to join your chain.
Income Potential/No Income Ceiling
With strategic planning and a reusable, consumable product it’s absolutely possible to garner passive recurring income via the MLM model. Contrasted with corporate jobs, there is no “market standard” for someone with your skill set within this model and therefore salary is not restricted.
It’s really up to you to decide how much you want to earn.
*Disclosure*: MLM is not a get-rich-quick scheme. Rather, it is a legitimate business strategy which requires tremendous effort and persistent, particularly in its initial phases, and will grow based on the sale of your products and services which generate repeat sales.
“But how,” you say, “can I do this?” Earning residual income requires a few simple steps, including:
1.) Generating early momentum within your organization
2.) Teaching others to continue that momentum
3.) Developing leadership skills to support the entire organization.
The premise of simplicity, however, cannot be confused with easy.
For the eager and persistent distributor, there’s no limit.
No Employees & Remote Work
Without having any direct employees it’s possible to build a business from the comfort of your own home. Imagine answering the demands of at least 80% of the US workforce who say they would like to telework at least part time. Unrestricted by continuous office distractions, a steady flow of impromptu meetings, interruptions of open-office settings, and the like your productivity has the potential to skyrocket.
Without managing employees, which includes going through traditional protocols of HR, it’s possible to spend more time focused on your downline distributors, too. You can allocate more time on towards sales training, learning about the product, and understanding the needs of reoccurring and first-time customers. As your downline expands, you’ll find that time spend invested in strengthening those relationships will benefit your direct sales and long-term confidence in your company.
Far and away from a get-rich-quick ploy, MLM is being maximized by thousands of American entrepreneurs from the comfort of their own homes.
As you begin your foray into network marketing recognizing the potential for success is not tied to any location, but rather your will and skill to connect, cultivate, and grow relationships is key!