The Right Way to Build a Multi-Level Marketing Business
Create or acquire a product or service that sells
The main reason why people tend to get into MLM in the wrong way is because they are of the belief that you don’t need a good product or service to sell in order to make money. It’s true, but then you’re not dealing with MLM anymore, but are rather dealing with an outright pyramid scheme. It may be a “legal pyramid scheme” in that there is an actual product or service to sell, but that product or service is likely very useless.
The focus ends up falling on the recruitment part of the “business” to generate the required profits, something which inevitably sets you along the path to collapse.
So acquire or ideally create a product or service that actually sells so that you can make money even if there’s no one else to market and sell it for you.
Sell the product or service
Naturally some marketing efforts will have to go into the selling of your product or service and the reason why you may have been looking to go the MLM route could very well be that you don’t quite have the budget for marketing and advertising. Still, the only way to prove that your product or service actually sells is to make some sales. You could partner up with MLM support businesses which have structures in place to fast-track MLM based businesses, but these often require a stake in all future profits. It may not be a bad deal at all.
The important thing is to be able to prove that your offering sells before you can recruit direct sellers who will be willing to market it with the prospect of earning commission.
Solicit direct sellers
Once you’ve proven your offering can sell then it becomes easy to recruit direct sellers to make up your Multi-Level Marketing team. I’ll let you in on a very important factor as well – it should be free for prospective sellers to join your MLM business. Sure, there will definitely be some costs involved with regards to your operation of the platform over which the members’ affairs are handled, but in the digital age we’re living right now that’s as easy as creating a website and perhaps a supporting app, operated in conjunction with unique referral links that are generated for each member.
The ability to offer membership for free speaks to the legitimacy of the product or service you’re selling, period!
Set up an ongoing, two-pronged rewards structure
Aside from the main reward each member of the MLM business will be privy to, which is of course the commissions they can earn for the sales they bring in, complimentary rewards such as handing out birthday gift baskets should be instituted. This will keep even those members who aren’t quite cracking the sales game yet engaged and it will also have them looking forward to trying harder and holding on to the much-needed hope that one day they’ll be successful.
Everything has to be within reason of course and it has to make financial sense.