Perhaps at least once in our lifetime we may have encountered friends or friends of friends who invite us, mostly out of the blue, for coffee to discuss a new business opportunity. This “business opportunity” then turns out to be another MLM strategy.
But what is MLM? How does it work? Would it work for you?
According to Wikipedia, Multi-Level Marketing (MLM) is a marketing strategy in which the sales force is compensated not only for sales they generate, but also for the sales of the other salespeople that they recruit. Because of this, MLM has the nicknames “networking” and “pyramid selling”. Several controversies have surrounded this marketing strategy because some MLM companies turned out to illegal and only exploit their members.
In all fairness to MLM companies who may have noble intentions, we won’t be making a conclusion of whether MLMs will work for you. Rather, we’ll be presenting some key points to consider to help you decide for yourself.
Do you believe in the product and the system?
Do not just fall in love with the idea of getting rich and all that. Get to know the system and the product well. Ask questions. Scrutinize. Is it legit? Don’t be content with the idea that you know the recruiter because it might be that he has also not really understood well. Salespeople move fast to close out a deal so that you won’t have time to think about it. But, you should take your time. Sleep on it, if you should, before deciding. If you don’t believe enough, then that MLM company is either illegal or just not for you.
Do you think getting there is easy?
Most of the time, salespeople will advertise in a tone that makes you think that with their MLM company, it is easy to make money. They’ll show you flashy new cars they were able to afford in just a month in the MLM or checks at 6-7 figures in a few weeks. Never. Believe. It. This is what they call “too good to be true”. There is no easy and fast way to get rich! Expect that when you join an MLM company, just like anywhere else that’s worthwhile, you’ll be in for some really hard work.
Is your market saturated?
One selling point for most MLM salespeople is that you have so many friends and friends of friends that it is impossible not to make money. But, the main pitfall for MLMs is market saturation. This happens when there are no longer people to invite. Not everyone will love the product or the system and it doesn’t mean that if you have many Facebook friends, you will sell. Chances are most of them have already been invited but don’t like the idea.
Do you know how to sell?
MLM is all about marketing. It is direct selling. The more difficult part is that you sell the system to gain more members. The product almost doesn’t matter. We know of many people who get into MLM but can’t even keep a good one-minute conversation. If you are not comfortable marketing or doubt your marketing skills, don’t think MLM will ever work.
So, what is your decision? Let us know your thoughts.