subject: Are Retail MLM Sales Important? [print this page] Retail MLM sales are one of the most important pieces to examine when looking at any network marketing business. If there is not a retail component to the business, you must truly begin to question the true objective. Many network marketing companies come under deep suspicion, because they seem to lack any true retail structure. The line between legitimate business and pyramid scheme becomes very blurry, when money is only made through the recruiting of others who are paying some type of membership fee without some type of retail product tied to that membership.
Another important consideration of the MLM retail pictures is the existence of a market, outside of the company distributors, for their products and services. This past week, I was looking at adding a company to my business line. Many of the rising stars in the network marketing world have joined this company, brining a lot of publicity and attention with them. When I could not see a market for their product outside of their distributors who were fulfilling their autoship requirements, I decided not add this company to my business. In fact their product or service could be obtained through other avenues at a much greater cost savings.
In my business I have been very particular about the presence of a strong retail component to the business. Companies that have great brand recognition and customer loyalty outside of their distributor network are the businesses that I prefer to represent. The majority of retail sales in my own business come from outside of my downline. I have been able to establish a solid retail business in each company that uses a traditional wholesale purchase/retail sale model of operation.
When you take a closer look at the long standing companies in this industry, you find names like Fuller Brush, Avon, Mary Kay, Forever Living, Amsoil, Tupperware and Shaklee. A strong direct sales program was teh foundation for these businesses and the leverage of the network marketing model only enhances the potential for the distributor. These companies do not make headlines for being investigated for questionable business practices and because of this, their names are trusted in the retail market place.
I want to encourage you to use common sense and the mind God gave you when you are evaluating network marketing opportunities. Take a hard look at the "real" business of the company. You may want to step back if the only money being made is through recruting bonuses and initial distributor kits. Even though people make money in these types of businesses, they tend to have a short life span.
Retail MLM sales may not be overly sexy, but they have stood the test of time.
