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Why do people join MLM companies

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Multi-level marketing (MLM) has become more than just a way to earn some passive income these years. And with good reason too. A lot of people are in fact turning to MLM companies and taking on the roles of distributors full time when they understand the full potential of this opportunity. There are more than a few reasons why people join MLM companies even though we hear a lot of stories of failures now and again. And I would like to discuss some of the important reasons here.

Inexpensive to start

The barrier of entry is tiny compared to other businesses. You can get started with a network marketing company for less than $100 usually. If you are someone who wants to own a business but don’t have a lot of money to start with, network marketing is perfect for you.


This can also be a problem because as it is not expensive, anyone can join, even people who are not qualified enough or interested enough. These people won’t take the business seriously as they haven’t invested a lot of money in it compared to traditional business owners who have to invest over $50,000 or more just to get started.

Work from anywhere

With multi-level marketing, you are no longer a slave to your business. You don’t have to hustle physically and move around everything to run your business anymore. You don’t have to commute to a specific location to get things done. You don’t have to be a 9-5 worker or show up at a set time anymore. With MLM, you can work from anywhere anytime.


You can go on a vacation and still keep up with your MLM business and make some income on the side while you have fun. You can work pretty much anywhere you want as long as you have your cell phone, a laptop and a good working internet connection.

Passive income

Most of the people earn a linear income from their day time job which is their active income. They work for a set period of time every week to get paid a set amount of money. If they somehow lose the ability to work or lose their job, then they will be in trouble.


But if you have a passive income of at least $500 a month, it will make everything a whole lot better. Everyone needs a passive income. One must not rely on a single source to sustain them forever. Residual income is the money that comes every month for something you did one time. Pensions, insurance premiums, etc are examples of residual income. Network marketing lets you make some residual income without having to invest a lot of money and effort.

Personal growth

Some people say that network marketing is a personal development business with a compensation plan combined, which is actually very true. Personal growth and development is a major plus of network marketing. In this industry, you are encouraged to grow as a person.


You have mentors who really help you along the way to grow the business and since business growth, in this case, involves networking, you learn valuable people skills. You are instructed to do proper research and get a deep understanding. You are encouraged to attend events and to spend time with people who uplift you. You are taught to set goals and ways to achieve them.

Tax advantages

This is a minor but important advantage offered by multi-level marketing businesses. You don’t have to be a CPA to know that having a home-based business will save you a lot of money per year in taxes. Network marketing gives you an easy and low investment plan to start a home-based business with which you can get the same pay off like any other business, provided you put in the effort. Even if you don’t think network marketing is for you, it is always recommended to consider running your own home-based business which will be very beneficial for you.

No billing/accounts receivable

If you have ever owned a traditional business, you know the problems of having to draft the bills and waiting for your customers to pay the bill on time every month. You can only stay in business if you make profits which in the case of traditional business means your customers have to pay up on time.


In the case of multi-level marketing, you don’t have to bother about accounts receivable and bills to be drafted. There is no billing involved or accounts receivable. Everything gets taken care of by the parents networking company. You only have to refer people to buy products with them and they will handle the rest for you.

No territories

If you own a local business, say a fashion store or a food stall, you are more or less restricted by geographical factors. You can only do your business within a set perimeter unless you put in extra effort to grow your business beyond the location which can be cumbersome. But this is not the case with network marketing.


If you are an MLM business owner, you can do business with anyone anywhere in the world. Geography is not an issue anymore. You can recruit distributors from anywhere in the world. You can also sell products to people anywhere in the world as long as your company products are legal there. And you can do everything online. That is the beauty of multi-level marketing.

No Quotas

Most businesses have to make some X amount of money to actually break even and stay in business. But with network marketing, because of the low cost of starting up and even lower cost of maintenance and overhead, this is not an issue. You don’t have any quotas that you have to stick to here. Even if your business doesn’t produce much income in a month, you are not facing any loss because you simply consumed your personal purchase which you were going to buy anyway.

Final thoughts

These are just a few advantages of multi-level marketing among a lot of them. Of course, there are some things to consider before you jump into anything. So give all the points some serious thought, assess everything and always make informed decisions.

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