As retail businesses suffer due to the lockdowns caused by the novel coronavirus (COVID-19) outbreak, the multi-level marketing (MLM) industry is booming significantly. Product manufacturers are partnering with direct sellers as their last resort to generate revenues during the ongoing pandemic. However, this has also created severe competition in the MLM marketplace. In 2020-21, new barriers have emerged to curb the entry of MLM startups in the market.
Established MLM corporations are dominating the markets with their networks. Meanwhile, new businesses in local MLM markets are struggling to tap success. To steer forward in such a hyper-competitive environment, MLM startups are seeking innovative strategies. They need to formulate and implement new ways of doing MLM business.
Considering the conditions derived from the COVID-19 pandemic, here are the top three strategies that can effectively help early-stage MLM startups in maximizing their growth in a short time.
#1 Personal Networking
A lesser-known strategy that works well in these conditions is leveraging the power of an MLM network. To succeed instantly, MLM startups can expand their distributor network with personal networking. They can adopt an MLM software that comes with its mobile application and use it across the network. This MLM mobile app can promote personal marketing through integrated messaging services such as WhatsApp and social media channels such as Facebook and Instagram.
Every member of an MLM startup can use this MLM mobile app to get their family, friends, and associates involved. A simple promotional campaign with this personal network can generate a major buzz in the local consumer circles. Soon, these members of the personal network would be interested to be the distributors of the MLM business. This is a great opportunity for MLM startups to expand their downline significantly during this environment when every other person is confined to their homes.
#2 Trend Marketing
A strong MLM business can easily gain success with the help of a great product. However, consumer preferences in the COVID-19 era have changed to a great extent. The trends influencing sales are now more focused on hygiene, product safety, nutrition, and personal well-being. MLM startups can capture these consumer trends through some new ways of marketing their products.
Here’s an example:
Millions of people around the world have lost their jobs. The source of income for consumers has steeped very low. Hence, it is wise to promote products that are offered at inexpensive prices. Discounts and flat price-cuts can help MLM startups procure bulk orders.
Similarly, an upcoming MLM business can choose to increase the marketing of products in the categories of health supplements, nutrition, medical products, and personal hygiene. Marketing products on such trends can raise significant capital to the users in a short amount of time. As these trends change, MLM businesses can redevelop new marketing tactics accordingly.
#3 Rewards for Direct Distribution
An MLM software can play a major role in the internal growth of a new MLM business. A network of distributors connected to an MLM startup can be motivated and pushed to test their entrepreneurial capabilities. One way of doing so is setting rewards for the direct distribution of products. With the help of MLM software, a startup can update its network with daily rewards on their activities. Instead of focusing only on increasing the down lines, distributors need to stay actively involved in their direct sales. With a rewarding system, every network member would be improving the relationship with the respective customers.
The MLM software would support their activities such as accepting online orders, analyzing competitors and cross-selling on e-commerce platforms. They feel like you’re making it harder for them to succeed, so they may not continue as distributors. Increasing the direct distribution can not only boost the revenues of the MLM startup but also create a robust network of reliable distributors. Such MLM businesses can reap the benefits of funding by showing investors their revenue volumes derived from direct orders.
Growth Hacking with the Best MLM Software
In the above three strategies, the need for effective MLM software is quite evident. Be it for rewarding distributors, executing new marketing campaigns, or expanding personal networks, MLM software is that key ingredient for the success of MLM business. A dynamic, advanced, and best-in-class MLM software such as Ventaforce can help these MLM startups in staying a step ahead in the game.