Multi-layer marketing (MLM) is a cunning business technique where companies and their independent representatives work together at their mutual benefit.
Seeing how everyone stands under the banner of the same brand name, any marketing campaign, being local or global, reflects on everyone. In the past, this method of doing business has performed flawlessly, but according to some, 2016 is going to be the greatest year for MLM companies so far. Here are several reasons why.
Shift in the job market
Even though some companies have operated as an MLM for almost a century now, today we have the greatest population of people working from home than ever before. The reasons for this are of course all the perks that the Internet and the technological improvements of the 21st century have brought. Seeing how this type of business can be quite convenient, there is no reason why anyone should miss this hype train. The best thing is that although it is great for the companies itslef, their employees perhaps benefit even more.
Broadening the scope
When the first MLM started to become a trend, the most popular niches dealt with selling products such as cosmetics, as was the case with AVON, or nutritious products and supplements, as was the case with Herbalife. As more time went by, more and more niches started to open up. The best example of this is the fact that last year one of the most successful MLM companies in the world was Pure Romance, which specializes in selling sex toys, lubricants and other bedroom furnishings. Another example to support this claim is the Organo Gold company, which uses a mushroom called “Ganoderma” to make great tasting coffee and other products.
Everyone knows that even though MLM has always been present and available, it has never been as startup-friendly as it is today. Unfortunately, coordinating an MLM company requires a lot of experience, which no startup has when it is first established. Still, even this barrier was successfully breached with the help of technology and businesses now use multi-level marketing software to aid in all the most difficult MLM tasks. This gives even the newest and smallest businesses a fighting chance.
2016 MLM Titans
If however you are not willing to risk making your own fortune, why not enjoy someone else’s protective wing. For those who hate being on the losing team, there are companies that are more or less a safe pick. The first place goes indisputably to the aforementioned MLM poster child Avon Products, Inc. which is your best bet. Seeing how both Avon and Oriflame are ranked high on this list, one could say that MLM is still favoring the beauty industry.
Another thing MLM is renowned for is the number of legal companies that operate in this manner. Namely, Pre-Paid Legal Services, Inc. is another MLM company that has been performing admirably in the previous period, but is expected to skyrocket in 2016. Of course, for years now, Legal Shield, has represented its trade faithfully in the MLM world. As one can notice, this method of doing business is not only for those who dabble in sales, it is adequate for the service industry as well.
Finally, what makes most people turn to MLM is its reliability. Namely, your expenses are only as big as your performance, meaning that your risks are reduced to a minimum. When your performance is higher, you offer more services, and if your expenses are greater and so are your profits. Once business starts slowing down, there is no traditional workforce infrastructure that you will have to support. Either way, it is a clear win-win scenario. This and much more are all reasons enough why MLM will continue to dominate in 2016 as well.
Marcus is an IT support professional. He’s running his own business, working with companies that outsource their IT maintenance. He often writes about technology, business and marketing and is a regular contributor on several sites.