What does the term MLM buyers refer too? In my opinion, there are really three popular definitions for this term. The first definition is someone who jumps from business opportunity to business opportunity every few months. The second definition is people who build their organization by purchasing other people’s downline. And the third definition is people who purchase MLM companies. I will cover each definition in more detail below.
Definition # 1: The first and most common definition is people who jump from business opportunity to business opportunity. I label these people as network marketing buyers because they believe in the concept of network marketing. Unfortunately, most of these people do not have the required sales and marketing skills to succeed in this industry. They think the network marketing company itself is the answer to their problems. So they join a new company every 3-6 months because they aren’t getting the results they want with their current company. And they think the next company will help them get better results.
I believe that 50%-80% of all MLM distributors fall into this category. I know I did at one time too. These people either end up quitting the industry or end up working with 10-30 different companies, over a period of years.
Definition # 2: The second definition for MLM buyers is people who purchase other network marketers’ downlines to build their own business. In case you don’t already know this, many MLM Companies allow their distributors to sell their organization to other distributors. For example, Jim Dornan, a famous Amway distributor was known for building his organization by purchasing other Amway distributors’ organizations. In my opinion, this is a smart way to build your business if you have the available capital. Although not all companies allow you to do this, many do. It’s worth doing some research to find out if this strategy would work for you.
Definition # 3: The third definition of MLM buyers are people who purchase MLM Companies. Obviously, this group is much smaller because most people don’t have the capital to purchase a successful MLM Company. The best example I can think of is when Shaklee was sold to Activated Holdings, LLC in 2004. To the best of my knowledge, Roger Barnett (current Shaklee CEO) owns shares in Activated Holdings, LLC. In addition, some successful network marketers eventually quit networking to start their own MLM Company. One couple that comes to mind is Ralph and Cathy Oates of Wellness International Network.
In summary, these are three most common definitions for MLM buyers. If you are a current distributor, you should consider purchasing downlines from other successful distributors. It’s a quick way to grow your business. And if you are an investor, could consider purchasing a successful network marketing company. I hope this helps.
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