MLM: The Pros & The Cons
There are several pros and cons of multi-level-marketing. You’ll want to know what the top ones are before deciding to join an MLM opportunity. With that said, below are a few of the top pros and cons of MLM.
The Pros of MLM
1. Low Startup Cost– Many MLM businesses don’t cost that much. Some only have a one-time charge, while others require you to pay a monthly or ongoing fees. If you don’t want to spend thousands starting a business from scratch, then MLM may be for you.
Do bear in mind that some MLM businesses do charge a lot. If you’re considering joining an MLM and their startup costs seem to be very high, then check out reviews. Doing this will help you determine whether or not it’s worth paying their fees.
2. Proven Model– Not everyone is a fan of running an MLM business. However, the business model is proven and it has been done for many years. MLM is all about recruiting people into the business and selling products, while generating residual income. Not only that, but the business model is relatively easy and straightforward to follow.
3. Diverse Opportunities & Products– When it comes to MLM, there is an array of business opportunities you can join, and this means having many products to promote. There are MLM opportunities in just about any industry and niche you can think of. Finding a company that operates in your niche, and has products you’ll love selling should be easy to do.
The Potential Downside of MLM
1. Hard To Recruit– Unfortunately, most of the MLM opportunities out there focus on members recurring other members. This has given the MLM industry a bad reputation, and many people automatically label MLM opportunities as scams or pyramid recruiting, even when a good portion of MLM companies are not scams or running pyramid schemes. This is one of the reasons recruiting new members into a down-line is difficult, even for those who have sufficient sales skills and experience with network marketing.
2. Low Chance Of Making Money– It doesn’t matter how good an MLM opportunity sounds or how good their products are, the truth is that many of their members are not making money. The majority of those who get involved with an MLM company ends up not making any money or barely making their money back. Sure, there are a handful of people who make great money with MLM opportunities, but the truth is the majority do not.
3. Not Your Business– Finally, you won’t be running your own business. If the MLM company you’re promoting goes out of business, then you too go out of business. This means there’s always the risk of being put out of business through no fault of your own.
There’s a lot of good things about MLM programs, but there’s also cons. All you have to do now is weigh the pros and cons of MLM, including the ones discussed above. Then you can decide whether or not to give MLM a try. If you do, then research different MLM opportunities before settling on the one you want to try.