Rich Devos and Jay Van Andel created the MLM business model over 50 years ago when they started Amway. It is still going strong today for several reasons.
1. Easy to start. When you join an MLM company you are in business for yourself as soon as you complete the application and pay your start up fee.
Oftentimes this is done on the Internet. If you are meeting with someone you may be completing the paperwork in person.
Regardless it doesn’t take much to start an MLM business. This is one of the true advantages of this business model.
2. Inexpensive to start. Generally for less than $100 you can be in business for yourself.
Some programs encourage you to make an initial purchase and this may cost a couple hundred dollars more. The advantage to this is you have everything you need to get started fairly inexpensively.
3. People actually make money. There is a little bit of a misconception in terms of how much money people actually make.
There is no disputing that if you actually sell products the company provides you will make money. If you recruit new distributors, and teach them to do what you’re doing, you will also make money.
The downside is many people who join an MLM business have no sales experience. They also do not have enough confidence to recruit new members. This can lead to people to quit their business before they earn any money, but that is not the fault of the MLM company.
4. It is easy to duplicate. This is one of the main benefits of this business model.
When you recruit a new member, and teach them to recruit new members, your business is growing. This duplication can really take off the further new members are being added in your downline.
5. Leverage your time. If you have 10 hours a week to work in your business that’s a 10 hours your business is growing.
If you have 10 people in your downline working 10 hours a week your business now has a 100 hours being spent on it every week. There’s very few business models where you can really leverage your time as easy as you can doing network marketing.
Think of MLM as a business before you join any network marketing opportunity. You are going to have a good time working with people and making money, but the bottom line is you will do better if you approach it as a business.