These businesses are like regular businesses that sell product(s) and/or service(s).
Their approach in distributing the products and services is called multilevel marketing (MLM).
As such, the businesses don’t usually sell their products and services on stores.
Their members are the ones doing the selling as the independent contractors.
They sell through door-to-door direct selling.
Nonetheless, most of the contractors are using online networking in making sales.
There are three main types of MLM opportunities out there.
These are MLM businesses that sell product/products, MLM businesses that sell a service/services and MLM businesses that sell membership. Nonetheless, the majority of the MLM opportunities today combine selling memberships and products and/or services.
People are enticed to join any of the MLM opportunities mainly because of the earning potential. MLM businesses usually have their own pay scheme. Members can earn through sharing the business and referring other people to join as part of their down lines.
They also earn commissions with each sale they make and from that of their recruits. When their down line was able to recruit a new member, they will also earn a percentage. Some MLM companies offer overrides on the 2nd to the 4th generation of recruits while some companies offer overrides on the entire down line of the member.
MLM Opportunities and Companies
There are MLM companies that also manufacture their own products. However, there are also those that outsource the products from 3rd party providers especially health supplement, cosmetic and household cleaning products.
The reason for this is taking advantage of the brand name. The best MLM opportunities are those that sell products with highly reputable and recognized brands that lend themselves to the MLM businesses for repeat purchases.
There are many ways by which the products will reach the buyer – be it a member or not.
Some members maintain a product inventory so that the products will be immediately available when someone purchases them. However, some members take orders and go to the main office to purchase the products if it is logistically possible to do so.
They are also the ones responsible for distributing the products to the buyers. There are MLM companies that ship the orders directly to the member or buyer.
Certainly, members may buy the products with hefty discounts for them to earn compared to non-members who have to purchase the products at retail prices. The member will earn an amount in each product purchased. The more other members and non-members will purchase and the more products they purchase, the higher the income.
Selling Services through MLM
When the MLM opportunities focus on selling services, there will be no need to go to the main office. The member has to promote the MLM business. He or she will earn with each new member who signs up for the service. Some of the most common services of MLM firms are legal and financial services. Some are selling educational plans and club memberships.
Furthermore, there are different types of members. First is the enthusiastic participant. These participants actively seek for various income opportunities. These are the people who willingly participate in orientation meetings to determine the right MLM opportunities for them. Sometimes, they attend at least 3 meetings before deciding which MLM business to join.
Second is the desperate participant. These are the participants who will easily jump into the networking business because of the earning potential. They usually think that these MLM opportunities will improve their current situation. They usually join the first networking business presented to them. In due time, however, they learn to discern whether they are in the right program or not.
Third is the ambitious participant. These are those who find residual income irresistible. They don’t think of entrepreneurial chains. Instead, they are focused on earning thus they devote time in learning the system and how they can take advantage of such financially. They often look for MLM opportunities with products that can be easily sold to other people like vitamins and supplements.
Fourth is the wise participant. These are the participants who often seat on orientation meetings to analyze the strengths and weaknesses of the MLM opportunities. Eventually, they will join the business with several strengths and very few downsides. They need not be mathematics or economics savvy to understand how they can maximize their earnings in joining an MLM business.
Fifth is the perceptive participant. These participants focus on the legitimacy and reliability of the MLM opportunities. They often look for business permits and registrations. They have to make sure that the MLM company is a legal entity before they will decide to join. However, even if the company is legal, its payout system and products and services must still be outstanding.
Sixth is the persistent participant. These participants never grow tired of joining various MLM opportunities in the past and failed at doing so. Even if they failed before, they realized the financial and non-financial benefits of joining a networking business.
Millions of people are earning because of various MLM opportunities. Some members earn enough from their overrides and commissions to pay for the monthly bills. There are also those who are able to buy their own houses and cars from their earnings. The bottom line is there is money in these MLM opportunities. However, this business kind is not for everybody.
While it is a business, MLM is a different kind of business that requires financial and time investments. Before joining an MLM company, make sure that you have already exhausted all the MLM opportunities in your area.
Do some research on which opportunity offers the best products or services or pay schemes. The two basic things that you’d be doing are recruiting others and selling products. If these don’t come naturally to you, then think twice about joining. If they do, go ahead and join any of these MLM opportunities.
Ultimately, you need to join the program that you believe in otherwise it would be very difficult for you to recruit and sell. Also, you should know that these MLM opportunities are not get-rich programs. They are good for extra income, and the best candidates are those who like to have a home-based business like stay-at-home moms and dads.