YBC Academy : MLM – Business of the 21st Century

What is it?
MLM meaning Multi-Level Marketing is where individuals seek to grow their sales base by word of mouth and direct recommendations! The majority of them are privately run companies (i.e no shareholders and everyone involved can earn the right to year end bonuses) and a small number of them are listed on the stock exchange where dividends are paid to the shareholders.

Multi- level comes into play when some of the customers who buy regularly see the advantage of registering with the company direct so that they can receive a hefty discount on their recurring purchases and so on and so forth – this then provides the “multi-level” effect.

Notice I hesitate to use the word “selling” and this is because even though people are happy to purchase MLM products when approached about considering it as a business under the umbrella of the MLM company the first question they ask is – “Is it selling?” In the majority of cases these people are usually already in business. No one seems to like the word “selling” despite this being key in any business structure. So please note that it doesn’t matter if you are selling a service or a product or indeed yourself at an interview without sales there is no business and/or income.

Are MLMs Pyramid Schemes?
This is a popular question that is asked a lot so let’s get this straight from the getgo…

It’s pretty simple really, Pyramid schemes do not involve an actual product or service and are illegal.

MLMs have a product or service to sell directly to the consumer and are governed legally by each country’s Direct Selling laws – in the UK this is the DSA (Direct Selling Association).

Isn’t it only the people at the top who make the money?
This is true of any business and MLM is no different. I often ask people where they are on their current pyramid i.e who their boss is or if they haven’t a boss because they are self employed or owner director then they are at the top of their own pyramid!

Network marketing and MLM – what’s the difference?
Absolutely no difference – as in any business you are simply growing your network and educating them about what it is that you do. MLM is no different.

What is the value of MLMs?
Globally the value of MLM sales was £184b in 2015 rising to £192b in 2018 and hit £200bn by the end of 2020. When you consider this against (say) Google at £182bn or Microsoft “122bn in 2020 then you can safely say that MLM is quite significant and is set to grow exponentially over the next 10years.

Can you make money with MLMs?
Yes is the straight answer however it all depends on how much money you want to make.

It is widely known that the vast majority of people in MLMs make only a few hundred pounds per month. The reason for this is that the majority of these are glorified customers purchasing for their family and friends at discount. For some this extra “few hundred” pounds a month is all they need to provide the luxuries in life and in reality, this takes up very little time and therefore a very attractive option instead of a promotion at work where you would be expected to take on much more responsibility for a small increase.

There is then the next group of MLM-ers who earn on average £800-£1200 per month – this does take more time and patience and when this position is reached you are more likely to go on to achieve greater things as the good habits have been instilled and you can see a clearer way forward. The majority of people still do this alongside a fulltime job and probably requires around 10hrs per week.

Why Choose MLM?
I am often asked why someone would choose MLM over a traditional business model and this year in particular has helped to explain why I believe that MLM is the business model of the 21st Century and has the support of some big names in business such as Richard Branson, Bill Gates and
1. Vey little risk involved. In UK this is capped at £199.99 to get started.
2. The most reputable companies will offer quality training and personal development for free
3. Huge demand for good quality, eco friendly traceable products that most MLMs offer
4. Opportunity to create a residual income
5. There is no cap on the income you can earn
6. It is a willable income unlike a number of traditional income streams/pension
7. There are no “employees”
8. No inventory
9. Low operating costs
10. Portable business allowing you to literally work from anywhere online/offline or both.

Is MLM for you ?
It will be if you meet the criteria below:
1. You treat it like a business
2. You are willing to learn a few simple skills and apply them in practice
3. You are ambitious
4. You are self motivated
5. You are Consistent
6. Positive and happy disposition
7. You know exactly what you are after – ie goals are really clear
8. If the 9-5 depresses you
9. You’re a happy person and really enjoy life!

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