Multi-level marketing (MLM) is a great business model for entrepreneurs as it lets you earn extra income by being independent distributors. In no time, you are able to run your own MLM business and generate a separate stream of income. With the help of MLM or network marketing business, you can find a viable way of improving your financial situation.
In the global direct selling industry, dozens of MLM businesses are launched every month. Entrepreneurs from across the globe are readily adopting the MLM business model due to its ease of operations and lucrative benefits. It is easy to start an MLM business, however, ensuring that it survives the market competition is extremely difficult.
To make sure that your MLM business stays active in the network marketing industry, you need to set an efficient timeframe. And, for that, you also need to be aware of why it is a good idea to start an MLM business.
Why Start an MLM Business?
MLM companies are involved in the direct sales of products and services. Through various network marketing techniques, an MLM business can expand its customer base and get more number of products sold in the market. With the support of social media and communication technologies, it is easy to operate these marketing techniques. There are two key reasons why now is a great time for you to start your MLM business.
Today, the world is more connected than ever. This one of the main reasons why you should start an MLM business. The year 2020 is ideal for entering into the direct selling industry. With the growing adoption of e-commerce, retail sales are plummeting and customers are buying products directly from the manufacturers. The global consumer-base has become hyper-connected and there are independent influencers who are instrumenting the direct sales of products.
- Over 70% of influencers on social media platforms such as Instagram and Facebook are promoting products
- Social media websites are brimming with marketing content
- One out of every three customers in the world is preferring direct purchasing to save money on retail charges
- The global MLM market has grown rapidly at 20% CAGR over the past five years
- By the end of 2025, the global direct selling marketplace is slated to touch US$ 200 billion valuation
Currently, the undercurrents of the direct selling industry would certainly favour new market entrants. Hence, one should make profits by grabbing this opportunity and starting an MLM company.
The second reason why you should start an MLM business is changing consumer behaviours. In the past decade, the purchasing power of an average consumer has improved significantly. There is a growing demand for premium products. At the same time, the trend for discounted pricing is also active.
Hence, network marketing professionals can meet these market dynamics half-way by selling premium products at discounted prices. The direct-to-customer feasibility of MLM companies makes them a hot preference for product manufacturers. Local product manufacturers are readily partnering with MLM companies to boost the presence of the products among consumers. By starting your own MLM enterprise, there is a strong chance that product manufacturers would partner with you and share their profits through the growth of your direct sales.
What is a Realistic or Practical Timeframe to Start an MLM Business?
Becoming an independent distributor is easy. You could simply join an existing, established MLM company. However, starting your own MLM business is a different ballgame altogether. To be successful in it, timing is critical. You need to find the most realistic timeframe to start your MLM company.
Here’s how you can set an effective timeframe for the commencement of your MLM venture:
The timeframe is decided on the duration of the launch. How long will your MLM business take before it gets launched? To answer this, you need to be ready with the plan of action that specifies how your business will be managed. And, managing an MLM company is also easier than before. You can use the best MLM software and streamline your marketing operations. This will not only bring efficiency in your business but also help you gain visibility on the real-time growth of your MLM company. Hence, you can consider this time period as anything from one day to forty days.
The look and feel of your MLM business are dependent on your web application and mobile application. The design and functionalities of your MLM company’s website need to be standout. For best designs, you can partner with an established web development company. Ideally, your web development timeframe could take a couple of months. You should at least keep a three-month buffer period for your website and mobile application to become up and running. The majority of your time in this phase would be consumed by UI and UX development, logo design, SSL certificate (web security), and website backend services.
You also need to finalize the compensation plans that’d be supported by your MLM company. This could take up a week’s time. There are several compensation plans which could be integrated into your MLM business. Either, you could use the basic MLM plans – binary and generation, or choose hybrid MLM plans and combine one or more compensation plans together.
Lastly, you need to fix the payout cycle for your network marketing professionals. People working for you would expect a payout from the first month itself. But if you choose quarterly payout cycles, it would give you more time to keep your enterprise running. You may not translate high profits in the initial months of starting an MLM business, but maintaining a monthly payout cycle would also be profitable. At the end of the day, you’d want your MLM business to stay afloat for at least five years.
Simply put, you’d need from around 45 days to get your MLM business started. You could also save time by working on multiple things simultaneously. The testing phase and the deployment of your MLM business should be complete within three months. So, keep this timeframe in mind and get started accordingly!