Is Multi-Level Marketing a Good Way to Earn Retirement Income?

Mult-level marketingIf you’re retirement age, most likely a friend or acquaintance has approached you with the opportunity to get involved in selling a product or line to your friends and neighbors. Most likely this product or company comes under the heading of multi-level, direct, affiliate, network or matrix marketing.

Most people fall into two camps concerning multi-level marketing. They either love it or hate it. Instead of selling products in a retail store, companies pay individuals a commission to not only sell the product, but to enlist others to work for them. Often referred to as a pyramid, an individual earns commission from the people they brought in as well as any individuals below them. For example, if you get Aunt Harriet to sell a product and she gets Cousin Sid to sell also, you make a commission from what both Harriet and Sid sell.

One of the good aspects of network marketing it’s fairly inexpensive to get into. Unlike a franchise, the initial cost is usually under $500.00. Most companies have extensive training programs that are great at getting you excited about their products.

The model of this is kind of selling is to reach out to your friends, family and neighbors to get them to not only purchase your products, but also become sales associates under you. This may put pressure on you and your relationships if people see you as only wanting to connect to sell them something.

This model has come under scrutiny by the Federal Trade Commission (FTC) and most states’ attorney general. There is a concern when commissions are paid for recruiting and not for goods and services.

If this is an area you are interested for earning retirement income, research the company and products thoroughly. Make sure they are reputable and have a product line you wholeheartedly believe.

Try to get a sense of how much the ‘average’ sales person makes a year and what is involved in earning that income. Does the money come from selling product or recruiting other people? Check with the Better Business Bureau and your States’ Attorney General to see how the company rates.

How good are you at selling? In addition to sales skills, the work requires paperwork you will need to complete. The characteristic most common in successful people in multi-level marketing is persistence. Keep in mind, for every person who loves this model, there are five times more that don’t like it.

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Comments

  1. Bobbi Raffin says:

    Great article!! I think the key is to have something you love… No matter the venue. If it is your passion – you love the product, the service, what it stands for – then you will love promoting it. :) ~ Bobbi Raffin – ApronTalk.com

  2. Cathy Severson says:

    Exactly, Bobbi, which is why I included it even if I personally am not crazy about the model . I have a friend, who I admire and respect who thinks this is the greatest thing since sliced bread.

  3. Cathy says:

    It’s too bad that this industry has been diluted and confused when it’s the most lucrative and most effective way for anyone to create a residual income. Because of technology there are other ways to connect with people beyond your friends and family. That was how this industry started, but we are way past that way of doing business. Recommend doing your due diligence in looking at the comp plan and the company itself before jumping in; make sure you understand what it takes to build the business and understand the culture of the business! We all work on referrals and this is basically all you are doing with this type of business. my 2 cents!

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