There is often a debate whether you are a small business owner if you are a part of the Multilevel Marketing (MLM) industry by partnering with a Direct Selling company. MLM is a business where Independent Representatives earn income by selling their products or services. Still, major income comes by recruiting more representatives like themselves called the downline for that Independent Representative. Let us discuss ahead how the MLM business is just like any other small business.
Reasons Why Your MLM Business is Like a Small Business
Even if you do not have control over the quality and features of the products you sell, even if you are considered as an independent contract worker legally, even if the MLM business model is profitable by increasing the sales force via recruitment by the Independent Representative; there are valid and robust reasons why your MLM business is more like a small business as shown below.
Independent Representatives Need to Incur Own Expenses
Like any other traditional small business, in an MLM business, too, you must pay, track, and deduct your expenses related to your MLM business. With the flow of consistent revenues and profits once your MLM business starts growing, many MLM Independent Representatives see the need to hire their own accountants and bookkeepers to manage expenses like any other small business.
Independent Representatives Need to Generate Own Leads
Your MLM company is not responsible for finding prospects or generating leads for you. And that is the reason why a prior experience in a small business comes in handy. Once you partner with an MLM company and have its products in your hand, it is entirely up to you to find customers to sell them. It is the main reason why the MLM business is considered a small business.
Independent Representatives Need to have Home-based Insurance
Though legally you are an independent contractor, you still need to make insurance for your business as a home-based one. It is even more valid if you must store products at your place or client visits to your place happen frequently. Examples of how your Business Insurance can help you protect against claims and lawsuits are: your inventory is damaged due to water leakage in your storeroom, or you are accused of false advertising on your social media business page, etc. MLM Independent Representatives need to check out general liability insurance that covers your inventory along with home-based business insurance.
Independent Representatives Have to Manage Own Administration
Even if you partner with an MLM company, you still must run your day-to-day operations like any other small business. You need to take care of all your admin activities, online and print advertisements, gathering prospects over lunch or coffee, tracking and delivering products to customers, along other things that go on to do a successful business.
Embrace Multilevel Marketing Business with Confidence
The revenue of the Multi-level Marketing (MLM) company, interchangeably referred to as Network Marketing, Direct Selling, or Referral Marketing company, is derived from a non-salaried workforce. This workforce individuals are called Sales Representatives, Distributors, or Independent Representatives who sell the company’s products or services and earn via a lucrative commission-based system. The Independent Representatives who are dedicated, work towards a goal, and implement effective marketing strategies by leveraging the benefits of the internet are the ones who derive smart returns from the MLM companies. These representatives consider the MLM activities they undertake like being their own business, which makes a difference to the output they generate. Yes, indeed, the MLM business is just like any other small business; embrace it with confidence and achieve the financial freedom you are yearning for. Wish you all the best.
