The Great Thing About MLM Start Up Costs
Posted On July 11, 2019
When you consider that a business franchise cost several thousand dollars, or even into the millions of dollars to start, MLM start-up costs are ridiculously low. This can be both good and bad. On the positive side, if you join an MLM company that doesn’t work out, you have not lost a lot of money. You may have invested some time that you will not be able to recoup, but that’s going to be true regardless of any business you start. On the negative side, because it is so inexpensive to get started, people tend to quit sooner than they would if they had more of their own money invested.
This is true in other business models such as affiliate marketing, or providing an online service such as blog writing. Affiliate programs are free to join, so people do it every day. You can start a blog writing business with nothing more than a PayPal account to get paid in. You might set up a free blog to showcase your writing samples. The critical thing in network marketing is to find a product line that you will use even if you’re not a distributor.
If you like the product and want to make money telling people about it, then go ahead and become a distributor. There’s a pretty good chance that the MLM start-up costs are not going to be prohibitive, and the savings you get purchasing the product at wholesale can allow you to recoup your business investment over time. The retail markup on most MLM products is going to be 20 to 30%. It could be less or more, depending on the cost of the product. Rather than purchasing the product at retail, you might as well buy at wholesale.
This is one way to overcome the initial MLM startup cost. Of course, another thing is to make a profit in selling these products. This is not hard to do if you like the product because you’re going to be telling people about it naturally. You can even build a group of distributors in your downline and make even more money. This is also easier to do if you have a good story about how you are making money, and you can help them do the same thing.
MLM startup costs are not real high in most network marketing businesses. This is a good thing when you take advantage of them in product savings, retailing products, and building your own MLM business.