The nice and the dangerous of multilevel. Are you for you?

0
17

A multilevel level consists of selling various products (often from transnational companies) and receiving a commission for each individual sale.

Grow your business, Not your inbox

Stay up to date and subscribe to our daily newsletter now!

December
17, 2020

4 min read

This article has been translated from our Spanish edition using AI technologies. Errors can occur due to this process.

The opinions expressed by the entrepreneur's contributors are their own.

When you enter the business world and your main dream is to be an entrepreneur, you can face various obstacles. Create a new model, hope it works, start capital, etc.

As an alternative, one of the most common modalities is multi-level store or catalog sales, direct or network sales.

As a result of the pandemic, several people have reached out to me asking about multi-level as they are considering this as an option to earn extra income or as a part-time job.

A multilevel level consists of selling various products (often from transnational companies) and receiving a commission for each individual sale. As well as generating income from new people who help you join the network.

Sounds good, right?

But just like there are advantages to this modality, which is perfectly legal when it comes to a direct sales model supported by a recognized brand rather than a pyramid scheme, there are disadvantages as well, and I'll talk to you about each one.

The good

Some companies don't ask a lot of capital from you or just buy the catalogs. Anyone can take part in this modality (no age limit, schooling, etc.). In some companies they offer valuable training to their salespeople. The more you sell, the more you make. You are your own boss, you can sell to anyone you want and at your own pace. In some companies, you are rewarded for reaching a certain sales area. You can exit this mode at any time. If you already have a job, this can be your second income.

The bad

There is no fixed salary. If you don't sell, you won't lose money, you will only not make money if you have built a network that generates constant flows. You can get into trouble for people who don't pay you on time or just don't pay you. There will be many times that you will meet people who do not want to buy from you and you will have to look for new customers. Many of your prospects will think it's the same as a pyramid. The quality of the products does not depend on you. So when complaints arise, your reputation as a seller will go down. You need a lot of perseverance, persistence, and patience; the results are not immediate. They will never be your own products so you will not be able to advertise as if they are yours or modify them. You are going to have some limitations when it comes to marketing.

One of my recommendations is that before you get into this business model, you research the company's reputation.

Not all multilevels are from transnational corporations and, as with anything, you will find scams or poor quality products.

I can list a lot of good and bad points for you, but you are the only person who makes this business model work for you.

If you're entrepreneurial, consistent, and persistent, then every business model is for you.

Don't stop training yourself on how to improve your activities and sell more. This is the only way to distinguish yourself in this business model.

And most importantly, fall in love with what you are selling. If you don't like the products, how are you going to sell them?