Some multi-level marketing (MLM) companies have a pretty bad rap. Most of us have encountered persistent salespeople peddling dubious vitamins and health supplements or asking to join their exclusive buyers’ club. On the other hand, a lot of people involved in businesses that run on a premise of multi-level marketing are able to make decent income; some of them consistently take home exceptionally big check; others merely get by, but claim the business is a lifeline for them and their families.
Traditional MLM companies will always remain a subject of contentious discussions. However, we’ve witnessed a relatively new trend. More and more companies that inherently have nothing to do with MLM are using hybrid marketing model in order to increase their sales and reduce overhead.
Let’s take EXIT Realty, a very well-known real estate franchise brand, as an example. On their corporate website, EXIT specifically claims they’re not a multi-level marketing company, which is true. The company does, however, incentivize their agents by paying them residual income for their recruiting efforts.
What separates EXIT from a traditional MLM company? Merely a technicality. Their residuals and bonuses are paid via EXIT’s head office, and not subtracted from the new recruit’s commissions.
I actually had a pleasure of meeting Steve Morris, EXIT Realty’s Founder and Chairman, and seeing him present at an EXIT-sponsored event in Chicago in 2012. He’s a great leader and there’s no doubt that his vision and insistence of a hybrid marketing model has brought a tremendous success to the franchise.
EXIT goes to great lengths to separate their company from anything MLM, claiming they have borrowed their business model from insurance and music industry. Regardless of where the idea came from, EXIT has demonstrated that network marketing and residuals can revolutionize businesses, even if they were founded on more traditional marketing and sales principles from the get-go.
Most of our clients are not typical MLM companies. They are businesses who decided to disrupt their existing sales models and use recruiting bonuses and residuals as an incentive for their associates. Every single company that we worked with has doubled, tripled or even quadrupled their sales and expanded the network of associates.
Needless to say, we’re not selling business coaching or advising clients on sales strategies. What we do (really well, too) is provide custom developed business management platform for companies daring to think out of the box.
Any business needs proper tools, but network marketing of any form and shape needs robust custom tools in order to build sales organizations, manage sales teams, and run flawless reports. If you decide that some form of hybrid marketing model is for you, then you should consider getting Winberry, which helps with all of the above and more.