Multi-level marketing is a business model that has been around for decades. In fact, one of the oldest multi-level marketing businesses, Wachter’s, started in the 1930s and is still active today.
The truth is, MLM companies have gotten a bad reputation because of some seriously bad apples. Unfortunately, not all companies that advertise MLM opportunities are on the up and up.
We always recommend doing ample research before jumping on board with a new MLM. However, when you find a good catch, you reach the potential to unlock some great benefits.
What are the benefits of working for an honest, on-the-level MLM? Read on to find out.
What Is the Multi Level Marketing Business Model?
Multi level marketing, sometimes referred to as direct marketing, is a business model that relies on a large number of affiliates to close sales. Most MLM companies do not have storefronts, but instead, make their sales via online platforms or at-home events.
When MLMs first grew into existence, most affiliates (aka salesmen and saleswomen) sold products door to door. This eventually evolved into the at-home party model, which you may recall from the days when Pampered Chef and similar companies were at their peak.
Now, many MLMs have harnessed the power of the internet and social media. This is great for affiliates because it allows them to reach a much wider audience and market products to new customers.
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Benefits of Joining a Strong MLM
Many people join a specific MLM because they love the products. Almost all MLM companies give their affiliates access to free products and discounts that even premium customers don’t have access to. If you love the products, this can be a compelling enough reason to become an affiliate of your favorite MLM.
However, freebies and deals aren’t the only benefits of joining a thriving MLM. Read on to find out what other benefits you may enjoy!
Gain Experience With Sales and Customer Service
One perk of becoming an MLM affiliate is that it gives you a crash course in sales and customer service. In most cases, your income is tied to a commission rate, which provides the incentive to close as many sales as possible. Throughout your experience, you are likely to test out different methods to close sales and provide quality customer service that keeps your customers coming back for more.
In addition, you will also get some hands-on experience with marketing. The best way to succeed with an MLM is to build trust with a large online audience to ensure that you don’t hit market saturation. Once again, you will get to see firsthand what kinds of marketing campaigns succeed and which ones fall flat, which is absolutely invaluable experience.
Learn More About the Industry of Your Choice
Many people who join MLMs do select a company that sells products that interest them. For example, you may love supplements and other dietary health products, and want to learn more about the latest in holistic health. You may love the fashion industry and want to give fashion marketing a shot.
When you join a trustworthy MLM, the stakes are far lower than when you open your own business. This gives you the opportunity to learn more about the industry of your choice. Then, you can take that knowledge and go on to open your own small business or grow your online affiliate presence.
Network With Other Entrepreneurs
Almost every MLM company offers incentives not just for closing sales but also for building a downstream. A downstream refers to the affiliates you are responsible for recruiting who make sales “under you.” When members of your downstream close a sale, you earn a commission from that, too!
When you get serious about building your downstream, you start to talk to other people in your community who have similar entrepreneurial interests. You also get to see who is serious about building a business and who isn’t. This networking opportunity comes in handy both in the present and in the future as you make more moves to build up your own income.
Supplement Your Income
Finally, the most obvious draw to any MLM is that you have a chance to supplement your own income. We say “supplement” because at least in the beginning, you may not want to expect that you’ll start pulling six figures.
Making money with an MLM is not easy. In fact, if you encounter an MLM that markets itself as a “get rich quick” opportunity, walk away. That’s a sure sign that the company isn’t honest with its affiliates.
Instead, look for an MLM that has strong sales figures and is open and honest about affiliate income. Most of the time, your MLM affiliation will help you to bring in a few hundred dollars a month. We like to point out that that extra dough is a great way to pay off bills, grow your savings, or play with some extra spending money!
That’s not to say that no one is making big bucks with an MLM. It’s just important that you approach your MLM affiliation realistically. In the end, you very well could become a top earner!
Is Joining an MLM Right For You?
Multi level marketing isn’t always as easy as it sounds but the benefits can make it worth it. If you’re looking for the opportunity to learn, grow, and supplement your income, becoming an MLM affiliate may be the right choice for you.
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