How to Counter the Anti-MLM Movement as a Direct Sales Company
The anti-MLM movement has grown in size as MLMs have risen in popularity. Direct sales companies have always existed, but social media has created more significant brand awareness and expansion opportunities.
One of the biggest misconceptions driving the anti-MLM movement is that these business models are glorified pyramid schemes. While this belief is untrue, many people are adamant about these companies shutting down because of the minor similarities.
With the help of social media, direct sales companies have been able to thrive. Unfortunately, so have the movements against this type of business. To better understand how you can counter the anti-MLM movement as a direct sales company, we give you some tips that will help you successfully dispel the spread of misinformation about how you operate your business.
Be Transparent About Your Product
The anti-MLM movement is fueled by the popular spread of misinformation by other MLMs and their own beliefs about their operations. Seedy companies exist. But you won’t ruin your company’s reputation if you are transparent about your products and your brand’s mission.
Transparency about your product and your direct sales operation will make your company more appealing to potential customers. When making claims about your product and how it can benefit consumers, use facts instead of attention-grabbing lines to boost sales.
You are creating a great image on social media but covering the truth about how your products work is dishonest. This can be potentially dangerous to consumers and upset them when they find out your company isn’t transparent. Dishonesty can be the downfall of your company.
Consumers are looking for companies that they can trust. Being transparent about ingredients and results will help customers decide if your product is right for them. Honesty is what will increase customer retention and brand awareness. Using facts and statistics to back up your product will put customers at ease.
Communicate with Your Audience
Communication is key when it comes to a direct sales company. You have to approach your customers, whether it’s online or face-to-face, to make a sale. You represent your products. Customers will come directly to you if they have questions about the product and whether they can benefit from it.
Since misinformation is prominent in the MLM market, many consumers will be hesitant to trust the legitimacy of your product and the information you put out. Be empathetic about their hesitation. They don’t want to invest in a product that could be harmful to them or not give them the promised results.
Competition is fierce, but honest communication will rank your business above the competition that values profits above its customers. Give your audience information supported by facts and statistics that they can easily research themselves. This lets them learn about the product and come to you for clarification.
Communicating with your audience builds their trust in you as your business grows. Establishing personal connections with some of your biggest clients and even other community members will show that MLMs are about more than just making a profit.
Don’t Be Aggressive with Sales
Direct sales companies rely on heavy marketing. This includes reaching out to people directly to look at your product and consider making a purchase. You don’t want to be aggressive about making a sale to new potential customers.
If a customer does not seem interested in making a purchase, don’t convince them how they would benefit from their product. This can prevent them from purchasing in the future and damage your reputation by looking aggressive.
Don’t send messages out of the blue hoping to make a sale. Building and maintaining strong relationships with people who have expressed interest is the most effective way to boost sales. Respecting customer boundaries will help them feel comfortable coming to you if they are interested.
While you shouldn’t be aggressive with sales, you can open up the discussion on your social media platforms or at vendor fairs. Ease customers into the conversation by getting to know them. Speaking to customers as people rather than customers will make it easier to understand how your product can benefit them.
Explain How MLMs Work
Recruiting is a part of the MLM sales model. This can bring in a lot of cash for members and help the business expand. However, this is also a part of the business that many people have misconceptions about. Although recruitment is an aspect of the business, it is not the same as a pyramid scheme.
As with sales, don’t send messages to people you don’t know out of the blue to join your direct sales team. This is very off-putting and is very rarely successful. MLMs that persistently message people online who have already declined are among the top reasons this type of business has put people off.
Opening discussion about the business and how it operates online or during face-to-face meetings allows business representatives to dispel misinformation. This includes misinformation about the recruiting process and the generation of business. People interested in this type of business model can ask questions to see if joining the company is for them.
Working for a direct sales company isn’t for everyone. The right people will find the company that best suits their needs and sells a product they believe in. Having people in the company who believe in the product and use it will be a greater asset than someone recruited because they believe they can make cash fast.
Create Your Own Content
Creating unique content helps with the expansion of your business. Most direct sales businesses have begun using social media to boost sales and expand their network faster than traditional door-to-door sales. Social media platforms have proven to help the success of MLMs of all kinds.
Sharing content from similar MLMs with permission can help you get into the swing of creating content and expanding your network. Intricate content creation isn’t for everyone, so templates and designs from artists and other creators are a creative way to increase customer engagement.
However, sharing content that you didn’t create is dishonest and considered stealing. Creating content can be a challenge for new users, but there are so many options for creating content that everyone can find something creative they enjoy doing to add to their success.
Content creating is one of the most popular ways companies spread brand awareness. It highlights the unique qualities of your brand in a way that engages customers. For companies not interested in making videos or other time-consuming content, simple things like polls and questionnaires are enough to increase customer engagement.
Dispel the Difference Between an MLM and a Pyramid Scheme
Contrary to the popular misconception, direct sales companies are not the same as pyramid schemes. Many people who work for a direct sales company struggle to produce the information that breaks this misconception. This isn’t their fault because members of the anti-MLM movement are very strong in their beliefs.
One of the biggest reasons this misconception is so rampant is because of the recruitment aspect of MLM companies. While this is a shared aspect, making money is not exclusive to recruitment numbers. Members of direct sales companies also make money from selling the company’s product.
Pyramid schemes are illegal and require members to recruit people to make money. If someone is at the bottom of the pyramid, they will struggle to make money because they will have to fight with more successful members to recruit other people successfully. There is a chance they won’t make any money at all.
If you understand the difference between an MLM and a pyramid scheme, you can explain to customers and others who spread misinformation about these companies. A goal of a direct sales company is to sell a product that customers want with the inclusion of recruitment of members who believe in the mission of the brand.
Final Thoughts
Direct sales companies require a lot of communication with customers and others who are unsure what it means to work for them. The anti-MLM movement is getting strong with the help of social media as more MLM companies use it to boost sales of their product.
If you communicate honestly and effectively with customers, you will have an easier time defending the business practice. Transparency is key to every successful business, but transparency is even more important for being an MLM.
Continue to strengthen a bond with the customers who believe in your product. You can’t stop all of the misinformation spread by the anti-MLM movement, but you can do your part to prove that an MLM is not a pyramid scheme.