The Network Marketing companies and the Independent Representatives associated with them usually advertise high earnings in their promotional materials and make big promises at open meetings. So, the first question that any new entrant wishing to join the Network Marketing business is, “Can you make quick money in an MLM business”? Well, the immediate answer to the question is YES. However, only those Sales Representatives can realize their dreams that put in sincere and appropriate efforts. Some do not make any money, and some even lose money. So, what is the reality of making money in the Network Marketing Business? Let us find out.
Why People opt for Network Marketing Business?
There are a lot of pluses associated with joining a Network Marketing business. You can do it as a part-time activity along with continuing with your current job. You can do Network Marketing during convenient hours that are suitable for you, and most importantly, there is a little investment to start the business. Further, you do not need any space to store the inventory, nor do you worry about delivering products to your customers. All that is taken care of by the company you collaborate with – thanks to the advancements in technology and the affordability of the Internet!
How Do You Earn in a Network Marketing Business?
Before knowing the reality of making money in the Network Marketing business, also referred to as Multilevel Marketing (MLM) business or Direct Selling business, you need to know how you earn in the business. The action begins when you join the MLM as a Sales Representative, also called the Independent Representative of the company. You sell the products or services of the company, and in return, you earn handsome commissions. There are several ways to market those offerings – in person, during parties, via the Internet, etc. Most Direct Selling companies incorporate the MLM business model. As the name suggests, you are compensated not only for your own sales but also for your recruits and their recruits’ recruits! And you are also incentivized for hiring salespeople like you – known as your downline.
Legitimate MLM Companies Charge Negligibly
The MLM companies that are legitimate charge a nominal fee for their starter kits. They sell products that are unique and innovative and a rarity in the open market. Also, legitimate companies usually offer their representatives a full refund for unsold items.
However, some companies operate in the guise of an MLM company, but actually, they incorporate the illegal Pyramid scheme. The companies that incorporate this scheme rely solely on recruiting representatives, and no product or service is involved. And these companies also charge the joining representatives a hefty upfront fee and compelling and convincing them to buy a big inventory of products that do not have much value and are also non-returnable to the company. It should be noted that most people who join the Pyramid scheme lose their money. So, beware of such fraudulent companies that have given a bad name to the Direct Selling companies.
The Futility of Guessing the Earnings of an Average Independent Representative
Can you guess the amount of money that an average Independent Representative makes? Unfortunately, contrary to your likely guess, the Direct Sales Representatives do not make as much as you believe and is shockingly low. The main reason behind this that more than eighty percent of Direct Sellers undertake the Network Marketing business as their businesses part-time and work less than ten hours a week. Other Direct Sellers join the business without any intention of selling or recruiting but mainly to buy their favourite products at a discount and earning something to have fun!
The Direct Sellers who join the Network Marketing business and earn serious money make a sustained effort. They implement effective marketing strategies, go all out to expand their network of people, and use the internet optimally to widen their reach and visibility. And those who are serious about their goals in life are the ones who make a fortune for themselves in the Network Marketing world and getting recognized as entrepreneurs in their circle and locality and beyond! So, the right thing for anyone is to not get confused or scared from the failures of the loser but look at the success journeys of the winners and emulate them.
Conclusion: Making money in the MLM business is all about the efforts
As we conclude at the end of our discussion, the reality of making money in the Network Marketing business depends upon the efforts you put in – seriously and effectively. The government, having realized the potential of the Direct Selling Industry, especially after it sustained and further prospered even during the Covid-19 pandemic and contributed significantly to the government revenues, have taken several initiatives to boost the industry like Make in India, Vocal for Local, Women Empowerment, Skill India, and Startup India. To safeguard those collaborating with the MLM companies, the government has recently drafted regulations that make it compulsory for the companies to register, have a legitimate office address, and blacklist companies that implement the Pyramid scheme. It is indeed an opportune moment for you to step into the Multilevel Marketing business with trust.
