Are you looking to launch a business but don’t want to have spend a lot on startup costs?
Do you desire a career where you can work from home? Would you like to make more money?

Chances are that at some point in your life you’ve come into contact with a multi-level marketing (MLM), direct selling, or relationship/network marketing business opportunity.

Today we will be looking at… the disadvantages and benefits of being an MLM Distributor.

MLM (Multi-Level Marketing) companies need to have the 7 Key Factors equally strong. Before you should even think of joining as a distributor.

The Disadvantages of being an MLM Distributor;

1. One way to be successful in an MLM Company is to be lucky and sponsor 2 brilliant, motivated networkers that have drunk the ‘Cool Aide’ (total one-eyed believers). One on the right leg and one on the left leg (example for Binary Systems)
2. OR You Need to develop the key MLM skills of;
   – Being able to effectively Attract Peoples Attention!
   – Be a good networker! (which most people aren’t)
   – Be a good salesperson (which most people aren’t) A good salesperson creates the need in the other persons mind first before the sales pitch.
   – You need to be an expert on all the products
   – You need to live and breathe the products
   – You need to be a good trainer at training your down line how to replicate you. Be good at Networking, Sales and Product knowledge.
   – You need to understand how to make sure what you do, can be easily duplicated.
   Fact is very few people master all these attributes before they make significant money or they quit.
3. A distributor needs to be a product expert. Understanding the benefits of the product. They need to sell the product as a superior product compared to all other similar products.
4. Products sold through MLM are normally much dearer than competitor’s products. The reason for this is that the company needs to pay to so many levels, in the distributor network.
5. Price perception from online products wasn’t an issue 20 years ago. It is today similar products are now even cheaper online.
6. As a distributor to get paid commissions, you need to continually purchase the company’s products. Commissions are also paid on product volume purchased from your down-line (organisation) Normally a distributor is buying more products every month, than they can use.
7. You are constantly chasing friends and family to be customers or distributors
8. Normally the ROI, Return On Investment is low. Unless you are a superstar sales person and networker.
9. You are heavily reliant on the company doing the right thing.
10. You are also very reliant on your down-line (the people you sponsored into the program)
    – To keep on buying
    – To keep sponsoring and adding to the down-line
    – And not jumping ship and chasing the next shinny opportunity.