The brick-and-mortar retail stores are losing their sheen. Those companies that are leveraging technology and incorporating eCommerce are witnessing a significant boost. The Covid-19 pandemic has suddenly pushed the Direct Selling method of retail into the limelight. And many people want to understand this method of retail and its sustainability. Direct Selling, also interchangeably referred to as Multilevel Marketing (MLM) or Network Marketing. It is a sustainable method of retail that this article delves into.
The Rise of the Multilevel Marketing
The advancements in technology and the tech-savvy consumer with heightened online expectations. This has compelled many companies to increase their eCommerce activities. During the economic recession induced by the Covid-19 pandemic, the Direct Selling industry was quick to sniff the consumer needs. They stepped up their online activities that the consumers welcomed with glee. The online purchasing power not only put the consumers in their comfort zone, but the company too made significant savings. The companies could save big on ads and extra costs and did not have to hire salespeople. Instead, they recruited salespeople – commonly known as Sales Representatives or Independent Representatives, on a commission basis. The Direct Selling Industry continues to rise on the back of the omnichannel commerce trend that is reshaping the world of retail.
Embracing eCommerce – Sustained Advantage
The Direct Selling Industry is known for its thin margins. In an environment where there are increased transportation and labor costs involved, it can pressure retailers. ECommerce has opened the door to significant opportunities. Traditional approaches could be a thing of the past as new changes usher in. Now is the time for you to rethink retail. It is the time to define new aspirations and make fundamental changes to your business operating models. The Covid-19 pandemic was a blessing in disguise for the Multilevel Marketing companies. For those who grabbed the opportunity with both hands to thwart the negative effects of the pandemic it is a blessing. When most industries were on the downturn, the Direct Selling Industry sustained its revenues and stood firm. Similarly, in future, those companies that embrace leverage the Internet, and incorporate eCommerce will be the ones who will enjoy a sustained advantage.
Functioning of a Multilevel Marketing Business
The working of a Direct Selling company is quite simple. It involves a company that sells a product or service. The company offers you a chance to join its marketing or distribution network to sell its offerings without you buying or storing them in your inventory. Once you complete a sale, the company pays you a lucrative commission. Further, companies incentivize you beyond the commission on the sales you execute – they reward you for recruiting more salespeople like you – known as your downline. And some companies even compensate you for the sales executed by your downline. There are three categories of the MLM business model that companies usually incorporate as part of their business strategy.
Multilevel Marketing – Transparent and Sustainable
The concept of Direct Selling can be observed in almost every business sphere without us recognizing it! Unlike in any nine to five jobs where you need to be designated at a higher level to take home a fat salary, you do not need that with Direct Selling companies. Your earnings completely depend on the efforts you put in – you have the option to earn limitless!! However, you need to choose your MLM company wisely by making an informed decision. You need to verify the company’s credentials, its existence, and the MLM business model it implements.
The new Government regulations safeguards the interests of those wanting to partner with the Direct Selling companies as Sales Representatives. The Direct Selling Industry has indeed evolved – there is transparency, and if done rightly, it is highly sustainable. If you wish to attain financial freedom and enjoy your life it is the right time for you to step into Network Marketing.
