The deadly Covid-19 pandemic has affected the economy world over and continues to impact retail and consumption negatively. But despite all the pandemic woes, the Multilevel Marketing activities have continued to blossom. In the process, the Multilevel Marketing (MLM) companies, also known as Direct Selling or Network Marketing companies, have improved the quality of their products and gained customers’ trust. Despite the world economy still being in a depressive mode, the Network Marketing companies continue to flourish. Let us discuss more MLM companies and how they have continued to grow their business.
Direct Selling Industry – Attracting More People During Pandemic
Traditionally, Multi-level Marketing companies have relied on person-to-person sales. Further, the Sales Representatives, also called Independent Representatives, either bought products from their inventory or sold them in their known circle or close acquaintances. It helped them to earn handsome commissions from the Network Marketing Company. They also earned by recruiting new Sales Representatives – called their downline, and further a percentage on the sales made by their downline – this earning called as the residual income.
As noted earlier, the sales representatives sold their products via door-to-door sales and conversing with prospects and giving them demos or presentations. However, the Covid-19 pandemic induced lockdowns and social distancing norms restricted them. Their business did not stop; using technology and the power of the Internet, Direct Selling companies and Sales Representatives invented newer and innovative means to sell their products – they leveraged social media, emails, messaging tools and other online methods to showcase and sell the products. The tech-savvy consumers reciprocated and found purchasing to be convenient and fun. Thus, the Direct Selling Industry attracted more buyers – online, and offline-and increased their salesforce as more people got inclined to Direct Selling to earn their livelihoods as most were rendered jobless due to the employment crisis.
Multilevel Marketing – A Home-based Business
The Multilevel Marketing business is a home-based one wherein the Independent Representative can work from anywhere and during convenient hours. Apart from that, there is little risk due to the minimal investment required to start the business. The Covid-19 pandemic resulted in mass layoffs due to the economic downturn. People who struggled to earn their livelihoods found solace and comfort in the Direct Selling Business that enabled them to gain financial freedom and become their own boss. Some people whose employers compelled to take salary cuts got drawn to Direct Selling to earn extra and as their second income.
Adopting New Norms is the Reason for MLM Companies Flourishing
The Covid-19 pandemic has changed the entire scenario for the consumers and the businesses selling their products or services. Businesses that have adopted the new norms of selling and innovative ideas have survived the pandemic woes. The Direct Selling Industry has been a big beneficiary. Amidst adversities, it has emerged as the dark horse. The MLM companies adopted some of the below methods that enabled them to stay afloat.
Customer Reassurance: Your customers are your biggest backbone and business support. Keeping them informed and updated about your products and interacting with them to know about their requirements or asking for suggestions can induce a feeling of reassurance in them – makes them feel that all is okay with the company. And using online means like emails and social media makes it even easier for you.
Being Creative: Due to the lockdown and social distancing restrictions arising from the pandemic, you cannot continue with the old marketing strategies. You need to be innovative yet creative. You need to market your products or services uniquely, making them stand out from your competition. For example, you can promote Do It Yourself kits, Wellness Packages, or use virtual ways to conduct classes or showcase your products to attract customers.
Increasing Online Visibility and Leveraging social media: You can increase the online presence of your business by optimizing your business website and content marketing strategy, carrying out SEO research and incorporating appropriate keywords on your web pages, engaging with prospects in online forums, and most importantly improving the user experience (UX). Even further, you can leverage social media by regularly interacting with your followers, posting paid advertisements, sharing your content, introducing online contests, and updating your readers about your new launches.
Conclusion – A Word of Caution when Collaborating with an MLM Company
In their frenzy – either out of panic and picturing a rosy picture or an escape route to grow rich fast, many people make a hasty decision in partnering with a Direct Selling network marketing Company. There is often a thin line between the MLM model and a Pyramid scheme. Many companies spring up suddenly in the guise of an MLM company and incorporate the Pyramid scheme that does not involve selling any product or service but just earning by recruiting people. Such companies vanish in no time, and therefore you should make an informed decision by verifying the credentials of the company you wish to partner with. It will give you confidence and pave the path to your business sustainability in the future. Wish you all the success.
