It’s no secret that multi-level marketing (MLM) is a popular marketing strategy among online retailers. Thanks to the success of companies like Amway, Avon, and Mary Kay, more and more people are realizing the many benefits of this type of marketing.
On the other hand, having a physical retail location and selling products in person have always been the backbone of any successful retail business. Whether you’re selling groceries, clothing, or accessories, having a large selection of in-demand, quality products at your fingertips is what makes a store stand out.
So if you’re looking to enter the world of MLM marketing but aren’t sure how it all works, here are some general guidelines that might help you decide which strategy is right for you.
Does The Strategy Promise Success?
One of the first things to consider when deciding between MLM online or retail store is whether or not the strategy promises success. In other words, does it allow you to achieve the results you’re looking for?
If you’re planning on building an MLM business from the ground up, you’ll need to make sure that you’re confident that this particular marketing strategy will bring in sufficient income to support your lifestyle. A common mistake that new MLMers make is that they believe that this will inevitably happen because people want to be helped by those who are better at selling.
However, this isn’t always the case. People want to work with those who help them achieve their goals and satisfy their needs. One of the best things that MLM can offer is a sense of community and helping those in need. In other words, it’s a win-win situation.
Even if you’re already selling a product that you believe will be a bestseller, you’ll still need to determine whether or not this strategy will be successful for your retail business. What is your competition doing? Are they also using MLM to grow their business? Identify the factors that will make or break your MLM strategy and work to eliminate them or minimize their impact.
How Does The Strategy Stack Up With Regards To Money, Time, And Effort?
Now that we’ve determined that MLM offers a promising strategy for our retail store, we need to ask ourselves two important questions:
How much money will I make from this strategy?
How much time will it take to build my business to a level that I’m satisfied with?
If you’ve ever participated in an MLM program, you’ll know that this is a broad question. It depends on a lot on how you answer it. Sometimes, a business can grow extremely fast using only MLM tactics. However, most people (myself included) have found it difficult to just jump into an MLM program and become successful. We’ve all been there, seen the promises of getting rich quick, and fallen for it. But if you’re looking for a legitimate way to make money, you shouldn’t have any problems finding success in MLM.
Building a retail physical store might seem like the easier option at first glance. After all, you won’t need to spend as much money on internet servers or get stuck with costly website hosting. But if you want to build a successful business, you should never underestimate the power of the internet. Especially since many MLMers leverage online marketplaces like Amazon to make or break their business.
With regard to money, time, and effort, we can see that building a retail store is far more difficult than simply selling and distributing products online through an MLM strategy. With many factors at play, from finding enough qualified salespeople to obtaining the right licenses, the effort required to make a retail business successful is immense.
Although many people believe that MLM is a quick way to riches, it takes a lot of effort to achieve success. You might have the talent, the idea, and even the product. But unless you’re equipped with the right strategies and the commitment to follow them through, you’ll never see the results you’re looking for.
As you can see, it’s a common misconception that building a retail store is easier than establishing an MLM business. But in reality, it takes a lot more effort. If you want to build a successful business, you should opt for an MLM marketing strategy where you can.
What Is The Main Attraction?
Another important consideration when choosing between MLM online or retail store is the main attraction. What is it that draws people to your business?
If you look at the growth of brands like Amway, Avon, and Mary Kay over the years, you’ll notice that the main attraction was and always will be the guarantee of earning a steady income. However, as technology evolves and people gain more experience in online shopping, the main attraction might change. People want those online retailers that offer a personal touch with customer service and a sense of community. In other words, people want to feel that they’re not just a number.
But if your main attraction is to simply make money, you might want to consider an MLM business model. In this case, your only responsibility is to recruit more salespeople and earn a commission for each sale that they make. Even if you have the best product in the world, you’ll still need to work really hard to earn that income.
Which Type Of Person Is Best Suited?
One of the best things that MLM has to offer is the variety of businesses that can be done. Even if you’ve never considered entering the industry, you probably know someone who has. It’s a common misconception that MLM is only for rich people. In actuality, there are many avenues for individuals of all economic backgrounds to make money online.
For example, you might choose to start a health and wellness business selling herbal and weight loss supplements. Or, you could create an online store that sells vitamins and dietary supplements. Or, you could choose to become the face of a luxury brand and create an entire line of clothing for men and women that’s fit for a princess.
As you can see, there are many options with regard to what type of business you could establish using an MLM strategy. And since this is a broad question, you’ll need to decide what’s best for you. While it’s true that MLM offers a promising opportunity to earn extra money, you should only consider this strategy if what you’re looking for is a passive income stream.