How Trends Will Define The Future Of Multi Level Marketing Business?

How Trends Will Define The Future Of Multi Level Marketing Business?


Multi-level marketing (MLM), also known as network marketing, developed to target consumers who were simply out of reach of traditional brick-and-mortar stores or wanted to be persuaded face-to-face by someone they trusted to purchase expensive, high-involvement items.

The most profitable MLM companies in the world have been similarly successful in two aspects. The first step is to develop goods that customers want to purchase through network purchases rather than other networks. Multi level marketing software developed by an MLM software company can help businesses in identifying and analyzing trends in the industry.

Multi-level marketing (MLM) backed by a multi level marketing software developed by an MLM software company is characterized by a pyramid-like structure. However, unlike shady pyramid schemes, MLM pays salespeople only when new members sell goods, not for recruiting new members in and of itself.

The MLM sales team, which is largely reliant on face-to-face contact and partnerships, usually employs one of two formats: person-to-person and group plan. In Asian countries such as Singapore and Malaysia, the former is preferred.

The party plan format, on the other hand, focuses on one-to-many participation in the context of a party or gathering to solicit purchases and hire new participants “downline” in the multi-level marketing chain. In this post, we will have a look at trends defining the future of the MLM industry.

This form of direct sale usually necessitates the agent meeting with the client one-on-one to negotiate specifics. Multi-level marketing software built by an MLM software company can help immensely in managing the sales team for any MLM business .

Multi-level Marketing in Emerging Markets
MLM companies have turned their attention to Asia in recent years, encouraged by the popularity of multi-level marketing in OECD countries. Their sacrifices have been rewarded. In 2007, Asia reported USD 37 billion in MLM commodity revenue, making it the world’s largest area for multi-level marketing.

One of the main reasons why governments in Brazil and Malaysia encouraged the growth of MLM was to allow underserved rural consumers to purchase “urban” consumer durables. In Brazil, the strong regional penetration of multi-level marketing, combined with the booming Brazilian economy, saw the industry expand by 20% in 2010, with optimistic predictions for the next few years.

Asian communities are more geographically cohesive, with many generations living in the same neighborhood, district, or even house5. This makes it possible for MLM salespeople to locate clients, “downline” salespeople, and references by tapping into familial networks.

Having said that, the resilience of MLM lies in its adaptability to economic ups and downs. Its adaptable nature enables seasonal “employees,” who are really micro-entrepreneurs, to generate an additional income source not just during economic booms but also during recessions.

Anecdotal data from Singapore shows that the sales force of MLM firms increased during the 2009 crisis as more people looked for ways to augment their profits. The extra income stream is particularly appealing to the gray-haired community.

Best World, a Singapore-based publicly traded dietary supplement producer, directly hires older customers to market their drugs. The majority of its customers are in their forties. Over 55s account for more than a fifth of Best World’s sales.

Multi level Marketing Trends in Asia
MLM businesses have started to sell wellness brands to meet the demands of Asian customers who are becoming more health-conscious. NUTRILITE (Amway) and Herbalife have all made their way into the homes of the health-conscious, with varying degrees of popularity.

Herbalife, a diet and weight-management firm headquartered in the United States, announced a 100 percent growth in net revenue to USD 152.3 million from 2006 to 2009 after extending its activities to more than 20 provinces in China.

Amway has also had tremendous success in China and India, with its NUTRILITE category exceeding USD 4 billion in revenue in 20105. Not only did NUTRILITE significantly contribute to the overall category rise. In addition, the company implemented a worldwide marketing campaign to highlight the nutritional benefits of plant ingredients.

Many Asian cities are becoming more environmentally aware, especially among higher-income segments8. To appeal to the burgeoning eco-friendly consumer market, MLM brands are expected to emerge in the future around re-usable goods and energy-saving household products.

Although this is still a relatively new movement, the popularity of items such as fiber shopping bags suggests that this may be a lucrative market. It cannot be more emphasized the importance of multi level marketing software built by an MLM software company in the growth and development of the industry globally.

Urbanization should be approached with caution. More than half of the world’s population currently lives in villages, and by 2020, 70% of Asia’s population will as well. The benefits of MLM in rural and semi-rural areas would diminish as developing Asia becomes more urbanized. As a result, multi-level marketing firms must continue to adapt and reinvent themselves in order to stay important to the demands of urban customers.

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