Why MLM is still a sound marketing strategy?
Market strategy is at the top list of every entrepreneurial regardless if a new business venture or existing business.
Before we look into Multi-Level Marketing as a strategy, first let’s have an overview on their marketing strategy applied by businesses in today’s market and what are the market strategy.
- The classic Business-to-Business-to-Consumer (B2B2C), this model involved the roles of distributors distribute products regionally to retailers in different locations in order to reach the customers, bricks-and-mortars are inevitable as locations are needed for customers to view, feel and touch the products. High inventory and minimum-order-quantity (MOQ) are needed to meet the suppliers’ orders requirement.
- The modern marketing, online business. Selling online is no longer a nice to have strategy but mandatory in today’s marketing footprint. While online marketing often sounds easy and too good to be true, the fact that online selling is much more than setting up your own online stores.
Both models above may seems to be different in terms of skills, knowledge and network required is different, but the destination of getting your products, services or brand name to the end consumer is the same. Regardless which model you’re currently pursuing, marketing the product or services itself to the end-consumer is inevitable. What’s better than having your customers to talk about your products and share their experience with another potential customers?
Let’s look into why Multi-level-Marketing is still a sound strategy to consider as part of your business plan.
- Low riskThe amount of finances required and financial commitment is lower compare to traditional versions. Online selling doesn’t require a lot of investment too? Think twice! The investment amount of online selling could be significant if marketing cost is included such as, online celebrity endorse, digital marketing, content. Online marketing is all about content, content and content!
- Lower operating costStaff amount required is much lower than conventional businesses. With the help of our MLM Software Solution, most tasks are streamlined in the software solution such as Commission calculation, managing commission pay-out, network tree tracking are all automated in the system and transparent too.
- Salesforce mobilityThe biggest advantage of MLM is the salesforce mobility, by having your customers to become a spokesperson for your product or services, the networking effect is enormous. Imagine your first 10 customers are turning into your sales person and selling to the next 10 person, your customers instantly grew up by 10x and they’re literally everywhere as compare to other business model.
- Better LoyaltyLoyalty programs in the modern business are getting sophisticated, consumers are getting demanding nowadays. Buy 5 free 1, buy 3 get 20% discount or giving out 10% discount by having a membership cards can no longer satisfy the demanding customers. What’s better than plugging customers into your compensation structure and getting paid in cash rewards when they or their referrals make a purchase?
- Word-of-Mouth-Marketing (WOMM)The presence of social media made word-of-mouth marketing become essential than others marketing method. Self-advertising are no longer a thing in today’s business, audience are sceptical in conventional advertising. Millennials don’t want to be sold by a brand, they want to be shared from a trusted sources, their friends or family.
Despite the advantages mentioned, network marketing or Multi-level-Marketing (MLM) are not shortcut as compare to other business models. Miracle doesn’t happened just because you adopt MLM as part of your marketing strategy. Team management, marketing education, company policy, products, reward scheme, branding strategy, a user friendly software solution are important for a successful MLM company. A well-planned business plan is needed in order to stand out among other competitors.