Multi-Level Marketing or MLM is a business model where the companies recruit distributors for selling their products. The distributor can then build his home based business by recruiting more members and by selling the products of the parent company. The ultimate aim is to sell products to the potential customers. MLM requires the distributor to stock the products to sell to the customers. The distributor is paid commission based on the sales made by his organizations.
Though MLM is a great income opportunity, many people are failing because they associated themselves with a wrong MLM company. A legitimate MLM company will require only a small startup fee. When you find an MLM company asking you to invest a huge sum of money claiming that you will get more by investing more, don’t choose the company as it may be a scam.
The illegal MLM companies use the pyramid scheme where you pay a fee for joining the company. Then you need to convince others to join your downline by paying the fee. This goes on and the upline will get paid each time a member joins in the downline. After some time the last person in the pyramid is left with nobody to join and the earnings stop. This pyramid scheme concentrates on recruiting members rather than selling products.
A legitimate MLM company requires the distributors to sell their products rather than building a downline. The distributor builds his downline with the desire to make more money. The emphasis is highly on the products. These products are all consumable and they may not be available in the market. When you are able to explain the benefits of the products and if your downline members trust you then you can get repeated sales bringing more money for you.
When you have decided to get into MLM industry, search for a company that requires a small startup cost. Pyramids schemes require large investments and you can just walk out as they are scams.
MLM companies will insist the distributors to buy the products initially. Check for companies that can buy back the unsold products. The company may buy back for 80% of the value but check for buy back policy. Otherwise you may be let with unsold inventory which is a loss for you.
Check for the demand of the products. If the company is telling you make money by recruiting more people avoid it. You have to look for MLM companies that insist you on selling products.
Study more about the company before investing your money. The products that are to be sold must be useful to the consumers. Otherwise you can never sell them. Communicate with your upline to know what help you will be provided. Once you are into MLM business, you must dedicate your time and put in efforts to develop the business by building a downline and selling the products at the same time. Keep your downline happy and provide all assistance they want as your downline is your treasure which will bring you more money.