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Should You Engage Yourself In MLM Business?

Cloud mlm software

To start off, we will explain what is MLM and its definition of it. MLM stands for multilevel marketing. There are many terms to MLM and they are:

  • Direct selling
  • Network marketing
  • Social selling
  • Team marketing
  • Referral marketing
  • Consumer direct marketing


Many people do not engage themselves in MLM business due to the nature of the business and many have the impression of MLM being an illegal pyramid scheme.


How does it operate?

The problem with MLM is the nature of the work as mentioned in the points above. You do not make profits from the products you sell. The money you earn comes from recruiting people as sellers under you, which will be your downline. You will get to make extra commissions from their sales which is your recruit’s downline


Can you succeed in doing MLM?

You can actually succeed in doing MLM but the percentage of it is low. A study 

conducted by AARP Foundation concluded that 44% of MLM participants dropped out in less than a year doing MLM. More detailed research conducted by Taylor’s shows that 

  • 50% of MLM representatives drop out within the first year
  • 90% drop out within five years 
  • 10% did not drop out and they are usually someone who is at the very top.


Job difficulty


It is not easy to do MLM. The reason why many did not succeed in doing MLM is because of the job scope. The difficult part about doing MLM is finding people to be your downline. Not just that, if you do not have many contacts to begin with, you will be at a disadvantage when doing this kind of business.


Company structure

Compared to a business owner, you are not involved in setting the pricing of products and overseeing the product development and any decision making. The structure of MLM is that everything has already been set for you. You do not have a say on what and how it can be improved, as everything is controlled by the MLM company.


Ways to promote direct selling

Gone are the days where you can go door-to-door to do direct selling. Nowadays, there are tons of unique ways where you can promote your MLM business. You can promote it on social media where you can talk about the product and how it can be beneficial to your target audience. And in order to keep track of your MLM business, you do not have to do things manually anymore as with cloud mlm software, it can help you to keep track of your MLM business with accurate data and also help you with your multilevel marketing. Not just that, it can also ease off your burden as you can easily keep track of your downlines’ performance.



So at the end of the day, should you engage yourself in MLM? Though, it has shown that it is not easy as even statistics show that many dropped out within a year. However, if you got what it takes to handle the MLM business, there is no harm in trying.

Cloud mlm software

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