Common Challenges Faced in MLM Business

Every business and every job faces its own challenges in today’s world of cut-throat competitions and social media influence. There are challenges, when we start our own mlm business and there are challenges when we are running our business successfully but those reach to the Top who face these challenges in positive spirit and bring out the solutions.

Let us see what are the most common challenges faced by any MLM company:


Finance is the most important factor for starting any business. In MLM too, money at the time of starting off do matter. In Network marketing, when you approach a prospect, it may happen that they may not even listen to you and out rightly say that they do not have money to invest in your product. Hence without investing quite a lot in marketing and promoting your products, you cannot achieve prospects/distributors/leads. For that, you need to distribute free samples to people who you meet, keep free seminars/webinars etc. You have to assure people that they will be benefitted by investing in your product. In second case, suppose you want to join an mlm company offering various packages. If you finances are short, you may end up taking a small package which may not bring big business to you.

Insufficient Leads and marketing strategies:

MLM business is a business of Network. More number of people you meet and introduce your business, it is better. Initially it is tough to convince people about why should they join you or why should they buy your products because most of the people have negative notion about network marketing. However, thanks to WFDSA and respective countries’ Direct Selling Associations, who work considerably to make people assure about authenticity of the mlm by bringing in code of ethics in every country. Hence, one have to be continuously vigil on finding leads and spreading about their business. In today’s digital world, one has to adopt the internet technologies and take its advantage of popularising their business. Also it is imperative to have presence on various social media sites and be active on it and continuously look out for lead generation. Social media site like Facebook, have special tools for promoting network marketing. Hence leverage these facilities to spread the knowledge about your business.

Lead generation totally depends on your social skills and how efficiently you leverage various marketing channels to reach out to mass of people.


After generating leads and spreading around your business, it is equally important that you follow up with each and every person you met. This is another step in your social skills. You have to remove that inhibition and regularly carry out follow-up either personally or by autoreply system and various other MLM tools.

Stay updated with Industry Trends:

Consider that you have been successful in setting up the business and is running but it is not only that. You will be out of the market, if you keep yourself and your downlines updated about the recent happenings and trends of the MLM industry. You have to be extremely alert on the various changing laws and regulation around the world. One should keep on gaining knowledge from various sources like meetings, seminars, reading success stories of Top mlm companies and try to understand how you can evolve by considering the developments in your business model. It is even more important that you encourage your downline also to stay updated so that all are on the same page on achieving a particular goal for your business.

In-competitive Downlines:

If your downlines are not motivated or they do not follow you, then achieving your goal becomes a one man mammoth task. To overcome this complacency, you have to encourage your downlines, have awards and reward schemes and work as team rather than having a boss-manager relation. Your mission has to be understood and followed by each every distributor in the downline- this is very critical.

In the end, whatever the challenges are faced, if you have the passion to turn you dream of doing something great, you can overcome these challenges by systematic understanding of the problem and bringing solution. But if you are not passionate enough, then whatsoever strategies you follow, you cannot make it big. When you are a newbie, you will need guidance from the veterans of the industry. Do not hesitate to take the guidance of the working of the industry. There many online materials and videos available for gaining insights on functioning of network marketing and its rules and regulations.

Besides all these resources, companies like Sankalp, providing MLM software (Ventaforce) which ensures smooth functioning of business, also provides in and out knowledge on various aspects of the industry.



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