What are the Pros and Cons of MLM?

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What are the Pros and Cons of MLM?

MLM (multi-level marketing), also known as network marketing system, is a sales scheme used to generate income without launching your own product. On the other hand, if you have something to sell, but lack marketing skills, you can use MLM to your company’s advantage. Your item will be promoted and sold by non-salaried workers who earn a small commission from every purchase made through them. It is quite similar to affiliate marketing; however, affiliates use digital resources to market products, whereas MLM agents primarily rely on face-to-facemarketing.

MLM may benefit a stagnant business and help marketers generate a handsome income. However it is recommended to learn about the potential pros and cons of this scheme before you decide to become a part of it.

Pro: Easy Money

Anyone with basic marketing skills can participate in MLM schemes as a part-time job. It is great way to earn some extra cash by selling a third party product. You are not required to make any investment, and the business that recruits you will provide you with marketing materials. Once you prove your skills and start generating substantial sales, you can even turn it into a full-time career.

Con: Risk of Scam

Unfortunately, many agencies offering MLM services are fraudsters, so beware. Work with a well-reputed company that can equip you with qualified professionals. Some individuals have turned MLM into pyramid schemes that can be troubling for your business. As a marketer, make sure that you are working for a certified firm that is representing legal products. MLM scams can give you a bad name in the market and possibly lead to commercial litigation.

Pro: Association with an established Business

MLM marketers often get to work with established businesses that provide effective training and resources. This helps them gain valuable experience and equips them for better jobs in the field. Associating with prominent brand names is good for one’s resume and provides the marketer with a competitive edge.

Con: High rate of Rejection

Some people say that MLM is outdated and tedious, which can be accurate in certain scenarios. Digital marketing is preferred due to the convenience and safety it offers. Face-to-face marketing is not ideal for every kind of product, and overall requires greater individual effort. Marketing agents face a high level of rejection, which is more frustrating when dealing in person.

Pro: Cost-effective

Since MLM does not require businesses to pay agents a monthly wage, the scheme is quite cost-effective. Agents will only get paid when they successfully sell a product. The commission based marketing strategy is usually favorable both ways; agents have the opportunity to earn as much as they can (as opposed to a fixed salary), whereas businesses do not have to shell out empty payments.

Con: Slow Development

Adjusting to the MLM system and using it to generate considerable revenue takes time. It is comparatively slow-paced, and thereby requires patience. There is no guarantee of success, as it all depends upon the viability of your product and the communication skills of the marketing agent.

Pro: Flexibleworking hours

Working with an MLM firm allows an individual to adjust working hours at their convenience. You do not have to work a hard-and-fast shift, which lets you treat it as a side gig. Businesses do not have to provide agents with benefits owed to full-time employees.

Con: Lack of Training and Support

Most businesses do not offer any regular training or special resources for the work. Marketing agents may have to be entirely self-sufficient in conducting the job; also, they cannot expect any payment unless and until they make a sale.

Author Bio

John Adams is a technology enthusiast, lifestyle blogger, and paralegal at a business law firm. He writes about widespread social and legal issues, aiming to help readers solve problems the smart way, rather than the hard way. He also loves sharing personal views on technological developments and trending life hacks.

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