For those who need economic prosperity and aspire to make their dream of entrepreneurship a reality, the multilevel business can become an alternative idea because it is characterized by its low investment and flexibility in terms of the use of time to undertake this activity.
What a multi-level business?
The multilevel business consists of a business model based on the construction of a network of independent distributors or entrepreneurs, which generate income through the direct sale of several products.
The reduction of staff by many companies in order to increase profits and combat competition is turning multilevel or multilevel marketing into a viable alternative employment.
A proposal designed from the first decades of the 20th century
Known at that time as “La Venta Directa”, the multilevel business would be a proposal designed to undo the expenses caused by those intermediaries that increased the price of a product when it reached its final consumer.
In the 1940s, the first company linked to the concept of direct sales called NUTRILITE was created, which created the first concept of Multilevel Business, the strategy of satisfying customer requirements through the creation of a network of independent distributors.
In order to have a vision of the development of this type of business, in the USA the people who dedicate themselves to this type of activity are concentrated in more than 38% in the food sector, while 16% realize it through the marketing of beauty products dedicated to women.
The commercialization system of the multilevel business has two foundations: firstly, to sell through a scheme of distributors and second, to make the sale directly to the final consumer.
The ideal of this business lies, in part, in that each of its members get commissions for the products sold. This, benefiting both the direct seller and the network of distributors to which it is linked.
In essence, this system is based on a sales methodology that achieves the satisfaction of customer requirements based on the creation of a distribution network made up of independent distributors not belonging to the company. This, in a constant manner and depending on whether there is dynamism in the participants of this system.
Through the multilevel system, the company seeks the loyalty of its traditional customers and the recruitment of new consumers at the lowest possible cost, constantly increasing the profits of the parent company and independent distributors that are part of the marketing network.
Multilevel Marketing is a proposal that manages to make thousands of people directly and indirectly obtain profits through a direct and integral purchase and sale process.
Advantages of the multilevel business
Among the most important advantages of the multilevel business we can mention:
- There is no risk of uncertainty about the profitability of obtaining profits. The ability to find customers will be one of the determining factors in the success of the members of the sales group. In that sense, the member will depend exclusively on their sales capacity and that of the participants in their sales network.
- The interested in this type of business does not require a large investment of money. Thanks to the fact that the company, through a small investment, provides its employee with all the elements he needs to make his first sales, thus making use of an inclusive system for anyone who is interested in participating in the multilevel system.
- Opportunity to be trained by the company. Multilevel companies offer training in the sales area. In this way seeks to retain those people who have excelled in the marketing and sale of the product.
Disadvantages of the multilevel business.
- The interested party must have knowledge in the area of marketing, sales and communication. The sale and marketing of products is based on the tools that the seller has to obtain new customers as well as communication as a means of convincing.
- The multilevel business requires a high degree of motivation. This aspect is important because many times the participant in the search for customers can be found in a first stage in the rejection of the product offered.
- Error on the part of the participants in thinking that with the multilevel business they will obtain a quick income. Everything will depend on the time spent on the activity, as well as on the ability to obtain clients to obtain commissions.
- Do not track customers. Not only is it enough to present one or several specific customers to offer a product, it is necessary to keep track of the customers of the product sold in order to know if he liked it and specify it as a fixed buyer.
In the multi-level business, for those who are interested in participating, there is a significant variety of world-renowned companies that can offer an alternative to undertake and obtain the economic independence desired, among which it is possible to mention:
- Younique: specializes in the commercialization of products for skin care and cosmetics whose ingredients are completely natural.
Do Terra: company dedicated to the commercialization of essential oils.
- Herbalife: company specialized in the commercialization of nutritional supplements. For the year 2016 its sales reached 4.188 million dollars.
- Mary Kay: company specializing in the marketing of products in the area of cosmetics, makeup and sun protection. For the year 2015 its sales reached 3,700 million dollars.
- Anway. Company marketing products for the home, for the health and beauty of women. For the year 2017 it obtained gains in the United States for about 8,000 million dollars.
The multilevel business is a proposal made for the passionate in the sale and marketing of products and / or services. Many have been the companies that today have an important participation in different markets. Are you ready to be part of this proposal?