Why MLM Is Good: 5 Great Things about the MLM Industry

by Chuck
(MD)

Are you trying to learn why MLM is good? If so, I can share a few things that I like about the industry. Obviously, this is just my opinion. I’ve been in love with this industry for ten years now. I’ve owned traditional businesses, online businesses and have also been a MLM distributor. Compared to traditional business, I truly believe that MLM is a great alternative.

Here are the reasons I know why MLM is good.

1. Low Entry Cost: Most traditional businesses cost tens of thousands of dollars to start. After you figure in the fees, lease or mortgage, inventory requirements, utilities, employee salaries, signage, and all the other costs, you will quickly realize how expensive it is to start a traditional business.

Unfortunately, most people who want to start their own business do not have the required capital (or can’t get the financing). On the other hand, anyone can start their own MLM business for less than $500 (sometimes much less). That means they have very little financial risk and don’t have to go in debt to start a business.

2. Residual Income: Very few business models offer the opportunity to earn a residual income. Also known as passive income, residual income is money that comes in month after month for something you did one time. Common types of residual income include rental properties, storage units, author and musician royalties, and insurance premiums for insurance agents. In most businesses, the business owner is trading hours for dollars, which means that when they stop working they stop getting paid. As a result, they must keep working forever to keep their income coming in. The MLM industry is the complete opposite. You can build a significant residual income within a few years.

3. Tax Incentives: Employees have few tax incentives. In fact, the tax code in the United States is written to benefit people who own businesses. When you own your own business you can legally deduct your expenses, which reduces your taxable income. Many of these expenses are expenses you might have already been paying before you started your MLM business. I recommend you sit down with a CPA or tax professional to find out how much money you could save by starting your own business. Of course, you have to have intent to make a profit. You must treat your business like a business, not a hobby.

4. Leverage: Leverage is a powerful word. Typically, people leverage themselves through money, or other people. One example of leverage is real estate investments. In many cases, you can pay nothing down, or even a small down payment, and leverage your money. However, real estate investing does come with some risk. On the other hand, in network marketing you can leverage yourself through other people. You can build a sales team and earn overrides and commissions from your entire team. This allows you to work smart.

5. Business School: MLM is the greatest business school out there. In 2-3 years of actively building a MLM business, you will learn more about running a business than you ever would at any university. You will learn taxes, book keeping, sales, marketing, recruiting, leadership, communications, operations, and so much more. You can take this knowledge to build a large MLM business, or you can even use your knowledge to start a traditional business later on. My favorite thing about this industry is the personal growth.

In summary, these are my top five reasons why MLM is good. Obviously, our industry isn’t perfect. No industry is. There is always a chance you could lose money. All businesses come with some level of risk. However, I truly believe that MLM is the best opportunity out there for someone who wants to start a business, but doesn’t have much capital. Of course, you should do your homework and research before you join a company. And you must treat your MLM business like a real business and work it consistently for a few years. I truly believe that if you get started, keep learning, and never quit, you will achieve success. What do you think?