Top Trending Strategies of MLM Business Expected in 2021
MLM, or multi-level marketing as it is commonly referred to, is a means of selling (or promoting) goods or services by leveraging a network of individuals connected in a hierarchical manner.
The unique aspect of multi-level marketing lies with the fact that it entirely eliminates the need for middlemen and aims at transferring maximum value between the consumer and the seller in question.
MLM companies, usually backed by an MLM software company, vary in terms of their product offerings and compensation plan but each and every one of them have one thing in common. The products are directly dealt with amongst two parties with zero involvement of middlemen. This creates an efficient system that aims to maximise value transfer.
Today, we have MLM companies that are worth billions of dollars and have millions of independent distributors who are directly connected with them. According to a report published by KPMG, it was predicted that the global multi-level marketing industry is supposed to reach INR 645 billion in India alone. This figure demonstrates the immense potential that the MLM industry has to offer.
Emerging MLM business should always be on the lookout for trends that can help them in accelerating their business growth. Although there are several ongoing trends that are being leveraged by industry players, we have carefully analysed and compiled a list of top 8 business strategies that will drive the MLM industry forward in 2021.
Top 8 Trending MLM Business Strategies in 2021
If you are involved in an MLM business or exploring association prospects, these strategies will definitely help you in scaling your business to the next level in 2021. Although the emphasis of these trends is focused on emerging MLM companies, an organisation or any scale and adopt these trends for scaling their business.
Here are the top 8 trending MLM business strategies that are expected to be prevalent in the year 2021.
- Digital-first services
The COVID-19 pandemic has pushed the envelope for the digitisation of services and the MLM industry is no different. The year 2020 witnessed a tremendous spike in digital transactions as people were confined to their houses and carried out their purchases by leveraging digital platforms.
This has given birth to a snowball effect that has pushed every industry to embrace digitisation at any possible business flow. Consumers are increasingly looking at digital options to make purchases, get support or product information, etc.
Hence this is perhaps the most prevalent trend that will affect the MLM industry. MLM businesses rely on an MLM software company that promises them the best MLM software. These specialised applications help MLM organisations to track their overall business metrics and provide a high-quality service to the end consumer.
The best MLM software enables the possibility to build custom services that are in line with customer and business requirements. Therefore, we will witness that the MLM industry too will lean towards offering digital-centric services in 2021.
- Brand Building Endeavours will Prevail
Marketers have conducted several studies that analyse the brand preference of consumers and have found that purpose-led brands take the lion’s share in consumer preference. People want to be associated with meaningful brands that serve as a bridge to a deeper cause.
Moreover, businesses that emphasize branding witness higher customer loyalty and subsequently, a higher revenue. Budding MLM companies and MLM start-ups that are looking to generate brand recognition and differentiate their products should emphasise deeply building a brand.
This will require targeted marketing endeavours that help emerging businesses in garnering attention and driving customers. However, it should be noted that brand building is a long & tedious affair. MLM businesses usually go to great lengths to ensure that their brand name stays relevant in the industry.
Globally recognised businesses such as Amazon, Walmart, Amway, Herbalife spend millions of dollars every year on their marketing strategies that help them in retaining the top spot in brand recognition and attention.
Emerging MLM businesses usually don’t have access to boatloads of money for brand building and this calls for innovative strategies that promise maximum returns for the marketing money invested. Therefore, brand building endeavours are expected to prevail in the MLM industry in 2021.
- Blockchain and CryptoCurrency
Blockchain-based technology solutions are probably the latest innovations in the MLM industry. Historically, overseas transactions have suffered from delayed settlement times and enormous currency conversion costs.
Established businesses have special arrangements with banks and financial institutions that promise them competitive rates and accelerated settlement times, but emerging MLM players even if they are backed by the top MLM software company usually don’t have access to such services.
This has called for the integration and deployment of crypto-based payment solutions for MLM businesses that deal with overseas payments. In fact, crypto currency payments can be enabled for domestic transactions as well.
In 2021, we will surely witness an enhanced acceptance rate for crypto currency in the MLM industry. An existing MLM software company can build crypto functionality and build the best MLM software. Moreover, if you are an existing MLM business looking to change with the trends, an MLM software company can help you immensely regarding the same.
The best MLM software available today already has cryptocurrency integration and MLM businesses can leverage the power of blockchain technology right now! According to a PR from India based Antier Solutions, it was stated that the firm has processed transactions worth $100 million until 21st January 2021. This figure speaks of the widespread adoption of crypto in the MLM industry.
- Influencer Marketing will pick up Steam
Teaming up with socially relevant influencers can help in scaling your MLM business to great heights. When people hear about a product from someone they know or like to hear from, it can work wonders for business growth.
Successful network marketing individuals or even companies frequently associate themselves with influencers who work on a commission or a one-time payment basis. The influencer marketing approach in the MLM industry has been relevant in the past and will be relevant in the upcoming year 2021.
According to veteran marketer Gary Vaynerchuk, influencer marketing is one of the easiest means of consumer persuasion and it can prove to be highly effective for driving awareness and facilitating sales. Therefore, influencer marketing is here to stay and will play a pivotal role in the growth of the MLM industry in 2021.
- Unique and Innovative Products will capture the Market
Although the MLM industry primarily deals with selling products that are not only useful but also aim at solving key problems that people experience in their daily life. However, adding an innovative touch to an already existing product and enhancing its appeal can work wonders for budding MLM ventures.
The range of products offered by the MLM industry is highly diversified and there are literally hundreds of thousands of unique product SKUs circulating globally. These emerging MLM businesses are in the perfect position to carefully evaluate the market offerings and develop innovative products that seamlessly capture the attention of the consumers.
The best MLM software can provide emerging MLM businesses with information regarding the best performing product categories and MLM businesses can then leverage this information to push out in-demand products. For example, there is an ongoing consumer trend toward natural products.
As a reaction to this trend, major MLM businesses backed by the best MLM software have already launched natural alternatives to their popular chemical-based products and consumers are increasingly enjoying their new choice. This proves that there is immense potential in the MLM industry for unique and disruptive product ideas and this trend is poised to continue in 2021.
- Effective CSR will Rule the Market
With the enhanced focus on CSR, and the tendency of Gen Z to emphasize brands that have a long-standing commitment to social well-being and responsibility, MLM companies need to have a properly documented CSR in 2021. Historically, many MLM companies have established their business structure centred on philanthropic causes.
The millennial generation thrives on social media and if they witness a company or brand that is leveraging a social issue for their twisted marketing requirements, they are more likely to call them out. High performing MLM businesses such as Amway and Herbalife have well-documented and operational CSR guidelines.
For instance, Amway states that the company has been actively engaged in contributing to social welfare and its CSR initiatives have impacted more than 5 lakh individuals globally. Other leading MLM companies have their own CSR guidelines that effectively helps them stay in the limelight and indirectly drive in more consumers.
Therefore, it becomes immensely crucial for emerging MLM businesses to have an effective CSR policy in place that will help them stay relevant in 2021. The best MLM software backed by a reputed MLM software company enables a seamless implementation and trackability of any MLM organisation’s CSR efforts.
- Social Media will drive Immense Business Growth
According to the 2017 Direct Selling Consumer Attitudes survey, it was found that businesses that leveraged social media for their business growth witnessed around 50% higher return rate. Another study by AvsLeads concluded that more than 90% of consumer’s purchase decisions are driven by social media.
These studies portray the potential that social media platforms have for the MLM industry. Social media platforms such as Twitter, Pinterest, etc. have billions of monthly active users and exposing MLM products to this audience can work wonders for existing, as well as emerging MLM players.
Moreover, social media platforms help MLM companies in conquering multiple frontiers in a single go. Firstly, these serve as excellent promotional mediums, and secondly, social media platforms serve as an outreach avenue for customers and a support channel for MLM companies.
An MLM software company has the capability to integrate social media functionality and create the best MLM software experience for its users. Social media platforms have effectively established themselves as a robust and multi-faceted solution, and MLM brands have been quick to realise that.
Emerging MLM players have gone to great lengths for ensuring a robust social media presence and this has benefitted them to an enormous extent. This makes it extremely crucial for any company to have an effective social media presence in 2021.
- The GIG Economy will go Mainstream
With the latest trends surrounding the employment state globally, it is safe to assume that the gig economy is here to stay. People are increasingly looking at gig-based jobs that promise payments as long as certain performance metrics are met.
MLM being a gig-based industry, witnessed a significant upturn in the pandemic year. With corporate jobs in shambles, people relied on the MLM industry to earn their livelihood. In fact, it was the least affected industry due to the pandemic.
Today, as more and more people are leaning towards gig-based employment services, the prospects of the MLM industry couldn’t be any better. To handle this rapid surge in the gig economy, it is highly suggested that emerging organisations deploy the best MLM software backed by a credible MLM software company.
Moreover, an MLM software company can help traditional MLM enterprises to build effective working portals for freelance network marketers which can prove pivotal in scaling their business to the next level. We will witness this trend to deeply influence the growth of the MLM industry in several coming years.
Hence, the inclination towards a gig-based economy will be another noteworthy trend that the MLM industry will witness in the year 2021.
The MLM industry is potentially sitting on billions of dollars’ worth of revenue. If the current trends are any indication, the global MLM industry is poised to reach more than INR 645 billion in 2025.
More and more emerging MLM companies that are backed by the best MLM software built by a cutting edge MLM software company are joining the bandwagon every day and experimenting with unique ways to enhance their market footprint.
The above-discussed trends are sure to stay relevant in 2021 and emerging MLM businesses must certainly leverage each and every one of these trends if they want to pursue a path of unhindered business growth.