Why The MLM Business Model Works

Photo by Moiggi Interactive (CC BY-NC)

After all these years the MLM business model is finally getting more time under the spotlight and in a positive way too. People see that it works with more and more distributors signing up everyday. But why does network marketing or multilevel marketing really work?

Three words – WORD OF MOUTH.

Done properly, word of mouth marketing (WOMM) adds great credibility to the product or service being talked about and by “done properly” I mean shared with passion and not simply to make a sale.

Jake signs up for an MLM company and starts using the products. Jake genuinely gets positive results from the products he is using and is so happy about the results that he begins to tell Alex about it. Alex sees the results and Jake’s genuine enthusiasm which triggers him to ask where he could buy it so he can use it himself. Jake makes a sale.

Then Alex sees good results as well and begins to tell others.

Word of mouth is a very powerful way of spreading the word because people hear positive news from other people they really know and not just from some popular endorser or a perfectly crafted internet ad.

That my friend is why the MLM business model works.

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