The Differences in MLMs
Updated: Aug 28, 2019
Posted on August 21, 2019 by dragonspitapothecary
MLM or direct sales companies are not all the same. There are some that have been around a long time and others that come up new every day. There are hundreds of different companies to choose from but selecting the right one for you needs some careful research and consideration. I honestly don’t think you can or should make that decision at a party or class but rather take some time to do your own research and really think through what starting a small business like this would mean for you and your family.
When I started using doTERRA is was for helping improve my skin. As I’ve written on this blog before I was over 40 and still having extreme breakouts that were just out of control. I had done all the expensive treatments, creams, prescriptions and more to no avail. It was horrifying to be a professional working person with broken out skin that I would try to cover up with makeup only to worsen the effects of the breakouts. A friend suggested doTERRA and feeling really deflated and disappointed at everything I had tried I said ok. It took some time but today I rarely get a breakout and they are nothing like I had before.
So here I was exploring how to use essential oils to fix my face and make it look better for work and decided I should sell these to other people. It was good and I was growing in my experience using these oils and the natural products doTERRA offers. Things were changing for me and this seemed like a why not epiphany. I however did not just sign my name and start a business. There was a lot of research and questions I asked to make sure this really did make sense and I wasn’t just caught up in the excitement of having my face finally be clear of constant breakouts.
What you need to know before you sign
What is the realistic income potential?How many people are at the top ranks of the company and how many new ones join them each year?How long has the company been in business?What is the company’s reputation?What is the company’s financial picture look like?How much have their product prices changed year-to-year?What is the culture of the company like? Is that demonstrated by their corporate leadership and the ranks?How can people buy the product? Can they buy from the company or just through a representative?What are the minimum requirements to be considered an active representative?What training and on boarding materials are available for you?Is there a cost for a website?Do you need to keep inventory?How much do the catalogs and collateral cost or is everything online?What is the upline line? Do you have access to them for mentoring and help?What is the product quality? Is it something people are buying?What is the customer service experience like?How are returns and complaints addressed?Does the company host training, a convention or other gatherings?Are there incentive trips, bonuses and rewards for top performance?How much customization can you do to the materials you buy to make them your own?What is their retention rate of representatives?
Knowing this information helps you understand this company and make an informed decision if this is a company and product you’ll be proud to have your name on. See people don’t buy that product or company they buy from you. You are the face of your business so if it is not a company that is reputable or has done some shady stuff or doesn’t take care of their representatives do you really want your name associated with it?
Go with the company and products that stand out. Go with the company that is making a difference and that takes care of their representatives. Go with the company because it is successful and where you see others are being successful too!
Let’s talk a minute about retention rate and why this is so important to know when you’re researching companies. Most MLM companies see a retention rate of 5% to 12%. That means for every 10 builders you get to start a small business with you, you’re going to need to replace 8 of them within the first year because they will quit, stop, move away form the business. Are you prepared to replace that much of your business each year and do you have the leadership skills to keep a team like that motivated to continue?
The incredible difference with doTERRA is they have a 65-70% retention rate! That is vastly different than your typical MLM company. What’s even more incredible is that even if someone decides they don’t want to sell doTERRA anymore there is a 80% chance they will still purchase as a customer from that company regularly. People trust this company and are loyal to it as customers and builders. It is a debt free company that shares resources to help their representatives also live debt free with the message that if we are all debt free we can all help others around the world. That was powerful for me to see. doTERRA doesn’t just tell us that but it is shown and there is a story tied to every product they produce that touches families that really aren’t that much different than mine. That is what sold me that this was the right company for me.
Would You Stake Your Name on It?
It’s not the MLM company but you that are the face to that small business you are establishing. Please be sure the product, company and offerings you have are something you are proud of sharing with others. Reputation is everything in a small business. Please don’t risk yours because of a product or company that is shady, questionable, lacks integrity, ethics, quality and the things that matter when you think about service, commitment, paying it forward, taking care of their own and more.
It’s important as a small business owner that you are proud of what you have and are building. It’s important that when you tell someone what you do for a living you can say confidently you have a small business that shares wonderful products and services that it helps a lot of people in the world. Too many people who start a direct sales small business are embarrassed or shy away from telling people what they do and this not only prevents sales from happening but it makes me question why. Is it the company, product or something else?
Interested in more?
It should feel exciting and inspirational to start your own small business. This is a super big adventure and one that should wake you in the morning excited to face the challenges and goals awaiting you!
If you currently have a direct sales small business that isn’t making you feel that way or you are having second thoughts of the one you’re with, let’s talk. I’m happy to help you find out if doTERRA is right for you.
Contact me!
If you’re ready to start your own small business and are seeking a collaborative, supportive group of like-minded individuals then we welcome you to join us! Click here to get started!