What is Multi-Level Marketing?
We all probably know someone that is involved in an MLM company. While Multi-Level Marketing companies have been around since the 1940s there has been a surge in their popularity with the rise in Social Media users in all age groups.
According to MSG, “The concept of Multi Level or Network selling seems to have emerged accidently when the Distributors discovered that they were generating more sales for the Company by referring their friends and known people to the business opportunity available with Nutralite,” (Juneja, n.d.).
So How Does It Work?
“Multilevel marketing (MLM) is a strategy some direct sales companies use to encourage existing distributors to recruit new distributors who are paid a percentage of their recruits’ sales. The recruits are the distributor’s “downline.” Distributors also make money through direct sales of products to customers,” (Tarver, 2020).
The ability to sell directly to your immediate network from the comfort of your home has been enticing for many, especially Stay at Home Moms (SAHM). Many are looking for ways to be home with their children while still contributing to the family income. The popularity and success of these businesses has led to a widespread acceptance of new businesses across stations and age groups.
How has Social Media changed the game?
Social media allows us to have an expanded network of connections that we “keep in touch with” even though we are rarely face to face. Thus, the familiarity makes MLM so successful. People trust Word of Mouth marketing and their peers’ reviews more than cold-call sales. Joining one of these companies offers not only the appeal of monetary opportunities but possibility of comradery and personal development.
“The opportunity to own a business, work from home, and make money are just a few of the reasons people decide to join an MLM'” . They go on to say, “Think Tupperware parties, but now turbocharged by social media. Today, sellers can host virtual events and sales, and reach far beyond their immediate friends and family,” (Silverstein et. al, 2019).
By posting testimonials and selfies on social media platforms sales are generated on team members are gained. “Parties” can be virtual. They can be live or pre-recorded messages to attendees, giving the party host more flexibility of schedule.
Videos, pictures, stories- it is all becoming crucial to an MLM business. One must understand Social Media Marketing to succeed.
What are some of the successful MLM companies today?
MONAT. -a vegan, all-natural hair and skincare product company, US launch in 2014.
Meet Staci Lee. Her journey with Monat began when her best friend was gifted Monat products after fighting Stage 4 Cancer. It was important to her to use products free from harsh chemicals. She introduced Staci to the products. Staci had just had a baby and was looking for something of her own after making the hard choice to leave her successful career to stay at home with her children.
“It gave me purpose and identity outside of being a mom,”- Staci Lee
Staci has quickly risen through the ranks of the Monat company due to her enthusiasm for what began as only hair products. She began by using social media to spread her love of the products that were changing her hair. By using testimonials, specifically BEFORE & AFTER stories, she grew her team and created a business for herself while getting to enjoy being a stay at home mom.
She has used Instagram, Facebook & YouTube to increase her sales and grow her team. Her love for her new found business was infectious. By simply spreading her story and asking friends to “Come have fun with her’ it all happened faster than she had ever planned.
Staci’s advice? Show up with Love & Service first!
If you are looking for fabulous hair and natural products, check out @chic_roots on Instagram.
COLOR STREET.- “Color Street is a creative beauty brand with limitless possibilities. We believe in supporting and empowering a person’s spirit & individuality. We celebrate entrepreneurs and inspire them to pave the road to personal success,” (colorstreet, n.d.).
I experienced Color Street through a friend and colleague, Lindsey. The nail strip sales company has a multitude of colors and nail art to mix and match. This is an amazing way to have beautiful nails without the constant cost of the salon.
I always love seeing what her new manicures look like, and her posts have most definitely led me to try these gorgeous nails for myself!
Younique,- an all-natural beauty product/ makeup company focused on making women feel beautiful inside and out.
I had a brief stint in the MLM world. While there are many conflicting stories of people’s journeys online, I have nothing negative to say about my experience. I met some wonderful women, learned more about social media and got to experience quality products. I witnessed the experience truly change the lives of some of these women. Younique is a Utah based makeup/ beauty product company. It was an excellent way for me to earn income while I stayed at home with my young baby.
The social media aspect of the business structure with Younique made a social media marketer out of me quickly. With the help of my mentor, I learned to host virtual parties, schedule my posts on a dashboard, and set up my network to engage the right clientele in the most efficient way. Plus, I LOVED their makeup.
Telling my story and letting people join me to "get ready" felt natural and easy.
This brings me to an important point…
IF joining a MLM company interests you, find a product you are passionate about so the recruiting process comes naturally to you. Recruiting truly is the key to these companies and monetary growth.
Other noteworthy MLM brands: Beauty Counter, Arbonne, Beachbody and so many more.
If there is a topic or hobby that drives you, I guarantee there is an MLM company that you could incorporate into your journey/ story. Whether it is supplements, essential oils, makeup or nail polish- these opportunities are exactly what some people are looking for; be it for a short term goal (vacation, wedding) or extra long-term income.
It takes hard work and dedication, no doubt. But with the added awareness and engagement provided by tapping into one’s social media community, the ability to reach the top ranks is at your fingertips.
Juneja, P. (n.d.). Management Study Guide: Brief History of Multi-Level Marketing. Retrieved from: https://www.managementstudyguide.com/multi-level-marketing-history.htm
Tarver, E. (Sept. 2020). Investopedia: Multi-Level Marketing (MLM). Retrieved from: https://www.investopedia.com/terms/m/multi-level-marketing.asp#:~:text=Multilevel%20marketing%20(MLM)%20is%20a,sales%20of%20products%20to%20customers.
SIlverstein, S., Lee, J. & Kosciulek, A. (Aug 2019) BusinessInsider.com: People who sell for multilevel marketing companies look wildly successful on Facebook, but the reality is much more complicated. Retrieved from: https://www.businessinsider.com/mlms-use-social-media-facebook-portray-financial-success-2019-7
Lilyquist, M. (Jan 2021). the balance small business: The Likelihood of MLM Success. Retrieved from: https://www.thebalancesmb.com/the-likelihood-of-mlm-success-1794500
Monat.com (n.d.). The Science of Monat. Retrieved from: https://monatglobal.com/the-science-of-monat/
Colorstreet.com. (n.d.). Color Street: Our Mission. Retrieved from: https://www.colorstreet.com/home/about