Multi-level Marketing is a business model that has helped countless people fulfill their entrepreneurial dreams. Many have made huge profits in the MLM space. Although the industry is old, recent technological advancements are reshaping the MLM sectors.
Every day innovations are being adopted by the network marketing industry to power its business operations, expand its reach, and bring in more profits. Developments in AI, automation, and machine learning have radically changed the face of MLM space and charged it for more productivity, and efficiency.
Let’s discuss the major MLM industry trends that are poised to revamp the network marketing segment and accelerate business growth and profitability for members and distributors.
Trends in the MLM Industry
MLM is a rapidly growing sector and the growth is mostly driven by the innovations and trends that are supercharging the MLM industry.
Let’s learn about them;
More attention on e-commerce and online sales
The first and foremost trend that is reshaping the MLM space is the shifting attention to e-commerce and online sales. For MLM companies, e-commerce provides a perfect avenue to increase brand awareness, maximize reach, and increase sales.
Here’s why e-commerce is a game-changer for MLM business;
Global Reach – Online e-commerce enables MLM companies to reach out to global customers easily.
- 24/7 Availability – There’s no time boundation with ecommerce. Your store is open 24/7 meaning you are available for your potential customer at all times.
- Better Brand Awareness – E-commerce combined with digital marketing helps MLM companies increase brand awareness.
- Lower Marketing Cost – Digital marketing allows several avenues and specialized tools to market products. It helps lower marketing costs.
- Enhanced Convenience – Customers can purchase products anywhere. No need to visit physical stores which leads to enhanced convenience.
The introduction of subscription-based models
In recent years, several MLM companies have adopted the subscription-based model. Its popularity has amplified so much that it has become a trend in the MLM space. The subscription-based model offers several advantages that have added to its popularity;
- Steady Revenue Stream – The subscription-based model provides MLM companies with a steady revenue stream. It’s a win-win situation for distributors and companies alike. Distributors get access to marketing tools, training material, and support, while the company has a stable revenue model.
- Priority Product Accessibility – An MLM subscription allows distributors to have access to all the premium products that the company has to offer. It provides them with a competitive advantage and helps them grow faster.
- Better Member Retentions – Members who have purchased a subscription are more likely to stick with the MLM company. Furthermore, subscriptions also encourage distributors to put in more effort and continue recruiting more members.
Blockchain in MLM
The greatest innovation of the present-day digital era is blockchain technology. It is gradually making its way to the MLM space too.
Let’s learn why blockchain is the latest trend in the MLM space;
- Transparency – With the help of blockchain, companies can make the MLM process more transparent, especially regarding transactions. This could motivate more people to join the MLM network.
- Enhanced Security – Blockchain principles can also be used to make MLM systems more secure. With blockchain cryptographic features it will be almost impossible to break into the MLM system.
- Global Expansion – Just like e-commerce, blockchain also facilitates global expansion for MLM companies. Members can easily initiate or receive payment without the need for traditional banking intermediaries.
- Anti-fraud Measures – The immutable nature of blockchain can help prevent fraudulent activities in MLM.
AI and Machine Learning Integration
Of all the innovations in the MLM industry, AI and machine learning integration are the most impactful. It helps MLM companies effectively track audiences, get business insights, provide recommendations, and more.
Let’s explore why this trend is the most impactful of all;
- It helps with customer segmentation – With the help of AI, MLM companies can easily segment customers depending on their behavior. It enables them to craft tailored strategies with the possibility of the highest impact.
- It helps with personalized recommendations – AI can learn about the buying preferences of a particular customer through machine learning. With this information, MLM companies can provide personalized product recommendations that customers are most likely to purchase.
- Predictive Analytics – Based on the sales numbers and other key indicators, a machine learning AI could easily predict the future course for the MLM business. It could help businesses with better resource allocation, training, and support to the distributors, and sales and inventory management. Armed with business forecasts, MLM companies can adjust their course to maintain the growth momentum.
Social Selling in Network Marketing
Businesses across several sectors are leveraging social media to power their growth operations. Incidentally, social selling in network marketing has become a major trend.
There are several compelling reasons why!
Better Online Visibility – The growing proliferation of social media in everyday life has made it a gold mine for getting more customers. MLM companies can leverage the high footfall on social media channels to boost their brand’s visibility.
- Build Personal Connection – Social media helps MLM brands interact directly with millions of people. It helps forge strong relationships that lead to more sales.
- Easy Content Marketing – Social media enables seamless content delivery. MLM companies can utilize the facility to deliver targeted content to the audience encouraging them to make a purchase.
- Cost-effective Marketing – Social media enables targeted ad campaigns. With a minimal marketing budget, you can reach out to a massive number of people. It offers a cost-effective way to promote and sell MLM products.
We have discussed the latest trend in the MLM industry. If you are venturing into the MLM sector, it is crucial to be aware of these trends. Only with awareness can you implement these trends into your business process and benefit from them. While innovation is an ongoing process and one trend will succeed another, innovations like blockchain, AI, and social media are poised to continue influencing the MLM industry for a long time. Therefore, the time is now to leverage these powerful innovations and take the step towards long-term success.