An economic crisis is a natural state of the market, which occurs from time to time, but inevitably plunges the world into turmoil, but only for some companies. The crisis means inevitable losses! However, for some, such periods can become a springboard and help to take a leading position in the niche. As the Coronavirus pandemic demonstrated, many businesses had to close, but some even pushed through despite the hardships. So what helps businesses survive crises and succeed in any conditions? The answer is a well-chosen business model.
Why do people choose MLM in a crisis?
One of the quickest and easily adaptable business models to the crisis is MLM (multi-level marketing), a system of direct sales in which the buyer is both the seller and the boss at the same time. With this system, you can earn in three ways at once: to receive interest on your purchases, on your sales, and the sales of your structure, that is, the sellers you invite. However, the MLM model is considered the most viable in a crisis not only because it offers such variability in profits. In addition, it has other vital advantages!
Most often, the initial capital for starting a network business is minimal; some projects can be started with just a few dollars. Moreover, the MLM business does not require additional costs for renting a warehouse, office, logistics, or hiring a lawyer and an accountant, since you can work entirely at home. So, deciding to start a career in MLM, you do not risk anything; you do not need to take loans or sacrifice your savings. In a crisis, when every cent counts, this is the best option.
Autonomy and independence
Unlike traditional business, where the result depends on a whole set of factors - from the work of marketers to product development, in MLM, success depends solely on the efforts and motivation of the individual. You sell a ready-made product of a well-known company, tested on a certain audience, so you do not need to worry about demand, trends, external circumstances, etc. Instead, you can entirely focus on promoting this product and making sales, relieving yourself of most of the worries.
High speed of business launch
As a rule, it takes an average business from 3 to 6 months to pay off and make a profit. However, with the MLM business, it is easier since you initially only invest a little in it for your time. Thus, the speed of development of your business depends only on you, on your willingness to learn, engage in networking, create advertising, and so on.
Let's talk about training! MLM companies have a built-in training system, so a minimum amount of time passes from registration to the first sales. Also, the mentoring system is prevalent in MLM - experienced business people conduct free webinars for beginners and sometimes even meet and work with them. Each new member of the MLM company is assigned a mentor who answers questions, motivates, and shares their experience.
What else to know about MLM
In addition to offering individual benefits, this model also helps fight the consequences of the crisis. The main problem is unemployment. During economic downturns, companies are forced to reduce their workforce, but MLM does not limit the number of participants. Network marketing also involves completely remote work, so there are no demographic restrictions for specialists.
Also, you can combine MLM with another type of activity to prepare for the crisis in advance, allowing you to generate additional profit streams. After the structure created by the seller-partner reaches the desired size and stabilizes, the sources can even become passive. So you don't have to be engaged in MLM for the rest of your life - it is more insurance for an emergency than a basis.
However, network marketing also has challenges - it is suitable exclusively for active, disciplined, and enthusiastic people because, as mentioned above, your success depends entirely on you. The importance of soft skills cannot be overstated here: you will need emotional intelligence, negotiation skills, team management skills, leadership, and much more. So, if you are hardworking, longing for financial freedom, would rather not wait until the crisis is over, and start a business now - MLM is perfect for you.