So you think MLM is one of the hottest money making business on earth. And you want to join or even start an MLM company.
But before taking any action read this article so that you can have complete idea & know facts about MLM business.
MLM is the short form of ‘multi level marketing’. Its also called as network marketing or direct marketing or chain marketing.
This is one of best way to promote any product provided you have quality products, a great income plan & you are doing everything legally.
MLM is a business of duplication where every buyer is a also a seller or distributor of the company. He uses the product & if he likes, refer to other people (usually their friends & relatives) & if those people like, then they will promote to their well wishers so that it becomes a chain of buyers & sellers & advertising spreads virally.
India has witnessed thousands of MLM companies in the last decade but only a few handful companies are genuine & working till date.
So you need to checkout some of the facts provided below, before you think of joining or starting an MLM company.
Basic Facts About MLM
You mightn’t like to know certain facts about MLM because it might turn against what you thought about MLM.
However, truth is truth you’ve to know the reality even if it’s bitter.
MLM May NOT be a Legal Business
There is no law or controlling body for MLM & network marketing so this mightn’t be a legal business. There could be MLM companies which are present in the market without a genuine product to sell.
They don’t have any product. They just rotate the money taken from new members to old members. To make it look like genuine, they create fake “revenue generation concept” but in reality there is no concept.
They only make money by getting downlines. If an MLM company is able to sell their membership to downlines and they’ve made enough money then they prepare a plan to vanish.
Although they’ll claim that they’ve great products but they don’t. So MLM companies aren’t necessarily genuine.
If you want to join or start a company then your primary focus should be legality & its products. There should be no compromise in this.
A Business Process is Temporary and It Can Fail or Succeed
If you’re promoting or campaigning for a process in MLM then it might succeed or mightn’t.
To succeed you need to have great products, only then you could convince people to buy and get under you.
You’ve to keep in mind a process is temporary and it can be abandon by the company anytime if it’s not worthwhile pursuing it.
Hence, you must be prepared to shift to new process.
MLM is all About Hardcore Selling, NOT Necessarily a Product
It’s a common misconception about MLM that you don’t have to sell a product.
Well! You mightn’t have to sell a product but getting a downline or convincing a new guy to join under your network and paying membership fees is almost like selling.
So you must be a good seller yourself if you are planning to be part of MLM company. If you don’t have this ability, its very difficult for you to create a big network in the company.
Be Ready for Recruitment
To become successful you’re required new memberships under you. If you want to expand your team and get as many as new members then you’ve to recruit professionals just like any other company.
You might’ve to hire a marketing department to run all your marketing campaigns. Then you also have to look for trainer or helper that’s going to help you in guiding new members.
Hence recruitment is required for an MLM business.
MLM is More About Deceiving Rather Telling Truth
In MLM, even if you don’t have a good product or something genuine then also you can make money because it’s all about deceiving people rather telling them truth.
You can lure them to join your membership without telling any reality of your company.
It’s quite natural that an MLM company hasn’t any product but they’re still able to get new members under them just by creating a false impression.
Its one of the harsh reality of MLM company.
But if you are looking for long term future in MLM, you have to honest about the products & income plan.
An MLM Company Could Vanish in One Night
You mustn’t surprise if a MLM company vanishes overnight. You can’t tell anything about them.
Normally, MLM is not a genuine business in India & one can’t say if a company is legitimate. MLM companies are shrouded under great mystery they don’t have any proper registration except few of them.
You might come across daily new MLM companies emerging promising great wealth to their members.
People fell in their trap out of greed to make money quickly.
These MLM companies take your money and vanish.
MLM Companies in India and Abroad
In USA, laws for MLM & direct selling are very strict. Most of the companies in US have very genuine products & they are very strict about their products, plan, management etc. but its just opposite in India.
There is no control on the person who want to start an MLM company. One can even start by buying products from the market & even without any products.
You must be very cautious about that.
There is urgent need for government to bring some strict law for MLM companies in India so that Indians can feel safe about their investment. Only then people will come forward to join any company.
What You Need to Start an MLM Business
Now if you want to start a network marketing company or even join it you must’ve certain qualities in you.
Starting a MLM business could be very challenging.
Choose a Genuine Company That You Want to Promote
Before you start a new MLM company first you’ve to work as a member under someone. If you’re going to start a network marketing business then become a member for a company which is genuine and has some reputation.
You first enquire about the company and then pay any membership fees for it. You shouldn’t pay if a company does not look genuine.
Great Leadership and Teamwork Quality
Once you become a member, you’ve to get new members under your leadership.
Your success would totally depend upon how many members you get daily to sign up. More members you get means more profit you make.
For getting it you must’ve great leadership and teamwork quality. You must be able to command members under you as well as motivate them to expand their network.
Ability to Sell and Get Downlines
You need to have a great convincing power. Only then you’re going to expand your network. To get a member you must persuade him by telling benefits of becoming a member.
Moreover, you need to market well to get new downlines. In order to reach them, you’ve to learn about advertising techniques and attract them daily.
Get one genuine & unique product
A network marketing revolves around a product. If there is no product, there is no MLM. So if you feel, you are a great network leader & can start an MLM company then your first job is to find a genuine & unique product that can sell like a hot cake.
Be Pragmatic to Shift From One Process to Another
MLM is not at all static. If you’re running a campaign for a process then it might become obsolete after sometime and you’ve to choose another one.
Hence, you can stick to just one process. It means you must’ve knowledge of as many as processes.
Therefore, you explain to your customers and get new members irrespective of the process which is currently running.
Money Isn’t Going to Come Overnight
If you’re starting a MLM company or joining it then doesn’t expect money is going to come overnight.
You’ve to build your company slowly and expand your network rapidly. After you’re able to build a large network of affiliates then you’ll be making huge amounts of money.
Thus, you need a lot of patience and ability to learn new skills.
This is one of the least focused area in MLM. Many MLM companies & its leaders don’t promote their products online.
Although few of the people promote through some forums or free classifieds but that is only 5% part of real online marketing.
If you want your company to become a big success then you have to promote your MLM through search engines like Google, Yahoo etc & social media sites like Facebook, YouTube etc.
A Word of Caution for Starting an MLM Company
If you’re going to start a company then you need to overcome the trust deficit of people. In India, after so many scams people don’t trust MLM programs.
There have been many MLM programs which turned out to be a big fraud in recent few years.
Hence, before starting a company and recruiting downlines you need to build a name among the people.