Advantages of Multi-Level Marketing
Posted: Sun Jan 05, 2025 8:56 am
Multilevel marketing, despite being subject to prejudice due to being confused with financial pyramids, can offer good income opportunities as long as the chosen company is serious and has a good reputation.
Multi-level marketing is a business model adopted by many companies to have a network of resellers of their products. It is a practice that causes controversy and even a bit of distrust, after all, there are salespeople who are quite insistent on recruiting people for teams. In addition, multi-level marketing is often confused with a financial pyramid scheme. However, those who put this prejudice aside can have good income opportunities, since multi-level marketing moves around R$40 billion per year in Brazil. Therefore, it is a business worth considering.
You will learn in this article:
What is Multi-Level Marketing?
Advantages of Multi-Level Marketing
What to take into account?
Difference between multi-level marketing and pyramid scheme
What is Multi-Level Marketing?
In the multilevel marketing model, there are two ways to resell products. Directly, where the salesperson interacts directly with their customers, and indirectly, when a sales team is formed . Those who only sell directly have fewer responsibilities and only receive commissions. Team leaders, on the other hand, must offer support, such as training, guidance, and rewards to keep their resellers motivated and engaged. This increases the workload, but so does the potential for earnings. Companies such as Mary Kay and Herbalife invest in multilevel marketing and have reseller networks all over the world.
Autonomy
Flexible working hours are one of the advantages of this type of activity. You can even combine it with another activity, especially when your network of contacts is large and consolidated. It is important to remember that the gain is proportional to your dedication to the business.
Scalability
Many sales team members can create their own teams after gaining experience. This way, the company's sales network will expand and become increasingly stronger and more present. Leaders should only be aware of the number of sales groups that can be created, which usually does not iran whatsapp number database exceed five due to company limitations. For this type of business, it is not enough to simply create teams; it is also important to maintain the focus on sales.
Support
Generally, companies that use this type of sales, Herbalife, Mary Kay, Amway, Jequiti, among others, offer training structures, commission and bonus policies and support for their sales network.
What to take into account?
Long term
You can't get clients overnight, nor can you create an efficient sales team without experience in the area. To evolve in multilevel marketing and have a financial return, the work must be planned in the long term, perhaps for months or years.
Initial capital
Depending on the company, the reseller may be required to purchase products in advance and then resell them. This is not the case with catalog sales, for example. You should think carefully before making this investment given the uncertainty of having customers to sell to.
Difference between multi-level marketing and pyramid scheme
Multi-level marketing is often confused with pyramid schemes, but there is a difference between them. The most important difference is that while multi-level marketing is a regular and legal activity, pyramid schemes are illegal practices. In marketing, products are sold, not financial transactions are made. Finally, when there are no more people to recruit, the pyramid scheme ends and is dismantled. In multi-level marketing, profits are associated with product sales.
A good way to avoid problems is to check if the company you are considering is a member of the Brazilian Association of Direct Sales Companies, ABEVD . Researching the company's reputation is the first step to making your sales without fear.
Multi-level marketing is a business model adopted by many companies to have a network of resellers of their products. It is a practice that causes controversy and even a bit of distrust, after all, there are salespeople who are quite insistent on recruiting people for teams. In addition, multi-level marketing is often confused with a financial pyramid scheme. However, those who put this prejudice aside can have good income opportunities, since multi-level marketing moves around R$40 billion per year in Brazil. Therefore, it is a business worth considering.
You will learn in this article:
What is Multi-Level Marketing?
Advantages of Multi-Level Marketing
What to take into account?
Difference between multi-level marketing and pyramid scheme
What is Multi-Level Marketing?
In the multilevel marketing model, there are two ways to resell products. Directly, where the salesperson interacts directly with their customers, and indirectly, when a sales team is formed . Those who only sell directly have fewer responsibilities and only receive commissions. Team leaders, on the other hand, must offer support, such as training, guidance, and rewards to keep their resellers motivated and engaged. This increases the workload, but so does the potential for earnings. Companies such as Mary Kay and Herbalife invest in multilevel marketing and have reseller networks all over the world.
Autonomy
Flexible working hours are one of the advantages of this type of activity. You can even combine it with another activity, especially when your network of contacts is large and consolidated. It is important to remember that the gain is proportional to your dedication to the business.
Scalability
Many sales team members can create their own teams after gaining experience. This way, the company's sales network will expand and become increasingly stronger and more present. Leaders should only be aware of the number of sales groups that can be created, which usually does not iran whatsapp number database exceed five due to company limitations. For this type of business, it is not enough to simply create teams; it is also important to maintain the focus on sales.
Support
Generally, companies that use this type of sales, Herbalife, Mary Kay, Amway, Jequiti, among others, offer training structures, commission and bonus policies and support for their sales network.
What to take into account?
Long term
You can't get clients overnight, nor can you create an efficient sales team without experience in the area. To evolve in multilevel marketing and have a financial return, the work must be planned in the long term, perhaps for months or years.
Initial capital
Depending on the company, the reseller may be required to purchase products in advance and then resell them. This is not the case with catalog sales, for example. You should think carefully before making this investment given the uncertainty of having customers to sell to.
Difference between multi-level marketing and pyramid scheme
Multi-level marketing is often confused with pyramid schemes, but there is a difference between them. The most important difference is that while multi-level marketing is a regular and legal activity, pyramid schemes are illegal practices. In marketing, products are sold, not financial transactions are made. Finally, when there are no more people to recruit, the pyramid scheme ends and is dismantled. In multi-level marketing, profits are associated with product sales.
A good way to avoid problems is to check if the company you are considering is a member of the Brazilian Association of Direct Sales Companies, ABEVD . Researching the company's reputation is the first step to making your sales without fear.