Hello friends, best wishes for New Year 2025. Today we will discuss about the future of direct selling industries. As we know, the future of these companies depends on how they can face these challenges.
In fact these challenges are more significant for Business Associate than in Direct Selling industries.
Avoid piramid schemes
Pyramid schemes are illegal activities in many countries. In pyramid schemes the company does not sell products to customers rather they make money by recruiting individuals. Associates collect joining fees from downline and this amount is divided among upline as per the business plan, hence it is called (membership joining business). Hence these companies and affiliates of this company tarnished the image of MLM business among people
So, affiliates are expected to leave the companies that follow pyramid model. This kind of business model has no future.
There are some other companies available in the market. They are not working on 100 percent pyramid model but like piramid model. (As pyramid model based companies are not selling the product, they are only collecting recruitment fees) But these companies are selling the product to people at a very high price (sometimes 2 times, 3 times the cost). So when people join the company, they indirectly get the amount for joining people. This is because they show to the government that they are a product based MLM company.
Products are available in their stock have very low quality and very high price, in their ecommerce web or app. Even involved affiliates will never buy your product a second time in their life.
So for the bright future of direct selling business legal MLM companies should create awareness among people against direct or indirect pyramid MLM model. Their seminars are good platform for this work. This will make a large number of people and direct seller aspirants shift towards legal MLM
Quality products at affordable prices
As we have told that product base MLM is legal business. But if the company wants to secure its future then they should maintain the quality of their product in affordable price. Usually the products of these companies are very expensive as compared to non MLM company. If the normal customer asks them about this then the affiliates say that the products are natural. The retail customer will buy the product from MLM affiliates continuously and for a long time when the cost of the product comes in his budget
Roll as solution provider
It is the responsibility of the MLM associate to find his downline associates or consumers of the product from the crowd. Some people may be good consumers and they will never join as associates
Suppose Mr. X is an associate of ABC company and he meets Mr. Y on the street and in casual conversation he comes to know that Mr. Y is a diabetic patient. Let us assume that Mr. X’s company sells kits for diabetic patients, so it is his duty to persuade Mr. Y to buy his kit and he should not approach them to become business partners. If Mr. Y gets benefit from the use of this medicine then he will become a regular customer of the company.
Use and Help of Artificial Intelligence
Artificial Intelligence can play an important role in the growth of MLM business. Here are some ways AI can be used in MLM business
marketing Management
lead generation
Sales optimization
Content creation
Data management
etc
Maintain laws and regulations
The Ministry of Consumer Affairs periodically makes and updates rules for MLM companies to protect customers. Therefore it is the responsibility of the affiliates and the MLM company to stay aware of the updates. And they should always be ready to follow these rules
Continuous new product development
As mentioned in the beginning of the article, the network marketing company will now have to play the role of a solution provider, in such a situation the development of new products can play a big role, but the network marketing company will have to keep in mind that the product not already available in the market.
All companies are making products of daily needs of people, so many network marketing companies are also making products of daily needs of people, but the biggest challenge in front of them is that their brand should have a name. In my opinion, daily needs products are not famous of any network marketing company like we know that Colgate name is famous in making toothpaste and similarly Dabur name is famous in making Chavanprash
Reputation of team leaders
The biggest challenge for a team leader in the direct selling industry is to save his reputation because many times they make false commitments to the customers. Many times, in order to bring the members to their team, they promise to provide them employment, while the employment It is not the job of the direct selling industry to give, sometimes they also give wrong information about the products.
Conclusion
In today’s article, we have analyzed the challenges of the directory selling industries. Many companies are trying to work on them and many team leaders are also making efforts in this direction. The companies which are able to face these challenges will have a better future.
Team leaders should join only such a company which is capable of facing the above mentioned challenges. Apart from this, make only such a leader as your upline who is completely honest and does not hide any information from you, right or wrong.