Colombian people interested in generating an additional revenue stream are increasingly turning to multilevel marketing businesses. The first half of the year has been described by the Colombian media as one of financial uncertainty, with the markets projecting only a moderate economic growth.
Under this scenario, Colombians are seeking additional income options to help ensure a more liquid future and Network Marketing or MLM is seen as an attractive option.
According to the Colombian Association of Direct Sales (Acovedi) on average over the last decade, the industry has grown 8% annually and has generated 14,000 direct jobs. There are an estimated 1.5 million people engaged in various MLM businesses in Colombia. Last year, the Colombian direct selling industry generated nearly $3 billion in sales with cosmetics and personal care accounting for 59% of the revenues.
The association recommends the following four elements to consider, to help guide people in selecting the right MLM opportunity.
FOUR ELEMENTS FOR A DECISION
- Choose the Company carefully. It must have a strong financial standing with a sufficiently powerful logistics infrastructure. The company must be committed to working in the Colombian market, making investments to ensure local presence and comply with all existing legal regulations in the country. It is important that it is regulated by the Super Administration of Industry and Commerce (SIC), the Dian and is affiliated to the Colombian Association of Direct Sales (Acovedi). If it markets products for human consumption, they must have the necessary Invima records. It should also have media collections in the Colombian financial system and banking partnerships for commission payments.
- Consider the product. The key question here is: do you like the product to be promoted? Would you consumer it personally if you were not getting paid to promote it? This is essential if you want to have extraordinary results in your business. In addition, you must consider whether the product actually works, if it does what it says it does. If the product is for human well-being, you make sure it has an impact on the health of people.
- The Compensation or Commission Plan. This is the formula through which the company will reward you financially for your efforts. This aspect is a bit technical and requires a thorough study when making a decision. But in general it is important that the commission plan meets three basic elements: initial fees, which you should be able to recover fairly quickly and generate attractive additional income for all future business prospects. Second, commissions that encourage team building, which allows you to earn money while you help and train others. Third is residual income. Once you have created a large network of business owners and consumers, the compensation plan must ensure that you can receive passive income for the rest of his life and that of their descendants.
- Support system provided by the company and the leadership team. Do they have a working system that has been proven? Do they have experience with coaching the independent distributors? Are there success stories in the Colombian market? Are there events that allow you to educate and exponentially grow your team? Are there physical and virtual tools that allow you to multiply your time and effort?
As a Colombian, if you are going to consider the MLM business to secure your financial future, consider these points before making a decision. Multilevel marketing is not perfect, but it is an excellent way to move toward new goals. It is a way in which you can earn a lot of money and also develop new skills, grow as a person and help others do the same.