Even though MLM differs quite a bit from the pyramid scheme, this common misconception makes its reputation suffer. They differ greatly in the very business model, since MLM is all about legit retail of a product, while pyramid schemes mostly deal with hiring new members for the entrance fee. So, even though MLM companies often become undeservedly infamous, there are a lot of things SMBs could learn from their example. Here are five most useful marketing tricks MLM companies use.
1. Personal Branding
Many different business use personal branding in their line of work, but none of them pushes it to such an extent as MLM companies do. Seeing how retail in MLM business usually works through representatives, most of these companies try to make people connect a product with the faces of the people they buy it from. Because of this, they insist that every single one of these individuals represents the entire brand. Avon Ladies are a perfect example of how this phenomenon works in practice.
2. Recruiting Customers
Everyone in the business world knows that a satisfied customer is the best advertisement you can possibly hope to get. However, MLM giants usually take this one step further and turn their customers into employees. When you think about it, this is actually quite a brilliant move. After all, they’re already engaged with your business, they know the way your service works first-hand and they are an excellent referral source. Finally, they are usually quite easy to access and even easier to hire.
3. Focusing on Online Promotion
Another thing MLM companies can pride themselves in is the fact that they’re great at adapting to new trends. This makes their business well-represented on social networks and their digital marketers always up to date with all online occurrences. However, they don’t disregard the traditional approach and they are known to use a bit more traditional methods, as well. For example, it’s not that uncommon for an MLM company to resort to telecasting in order to improve the lead generation to their website.
4. Getting Involved into Charity
We already discussed how the image of an MLM company benefits from every individual representing it, but the same goes the other way around. This is why global marketing endeavors are usually followed by a heavy investment into charity events. Many people care a great deal about these things, and if you get labeled as a charitable enterprise, your reputation might undergo a significant boost. Just make sure to protect your business from various scams and do some research on charities that are really worth investing in.
5. Investing in Technology
Finally, as we have already mentioned at least a few times, MLMs are great at keeping up with the flow. This also means that they always invest a lot of effort in getting all the latest tech upgrades, which can take their business to the next level. Their websites are superbly optimized, the platforms they’re working with are always simple and efficient, while their customer service is usually second to none. All these things make doing business online so much easier.
In the era of the internet, there is so many conflicting information out there that it’s difficult to know who to trust. When two different parties give you completely opposite advice, who are you going to listen to? Well, the source with more authority in the niche in question. From this viewpoint, the success rate of top-notch MLM companies more than speaks for itself.