Are there Common Denominators?

16 Jan

MLM or Drop Shipping

I recently heard someone say that MLM and Drop Shipping were in the same category. While there are indeed some similarities they are actually different. I am going to do a short comparison for fun.
While I love MLM and the fact that it is truly one of the easiest ways to start a business from home with the least amount of upfront dollars, it is not that easy to maintain those steady high incomes unless you are a rock star with 100 customers! So, what I am saying is do not enter into MLM lightly. Expect to WORK at it every day. If you can do that, you can succeed.


Drop Shipping is Hugeness on overload since the pandemic with COVID19! So many businesses that were strictly brick and mortar are now finding that to survive they have to go online. This makes your job equally as difficult as starting out in MLM. You will have to WORK at it and make sure your ‘online store’ is attractive, easy to navigate and trustworthy. For many people who do not understand the process, this could be harder than doing a live video presentation of your MLM products.


Before we move on and do the actual comparisons another thing to consider, which applies to both MLM and Drop Shipping, in my opinion, is you have to love your products or your chosen niche! If you don’t absolutely love, love love what you do and what your products can do for others you may not survive the initial work-really-hard part.

I am talking about people who are just like you and me, not those seasoned marketers who know how to set up funnels, lead pages and up-sells ( oh how I hate upsells!) and can sell anything because they know how. NO! I am talking to you. The person who actually gives a damn.


And yes, I have tested some of these sites and boy was I disappointed in the products I got. Total junk but they knew what they were doing and they were selling boat loads of the stuff without a care about their customers or re-orders. They had no intention of sticking around long enough to get any re-orders! Well, not for that product anyway. Have you ever ordered one of those two for one kinda deals especially around Xmas time? Yup!

Let’s Get to that Comparison StuffI am going to bullet list the comparisons for each one to make it easier and a quicker read.

MLM

MLM Today
  • low cost to get started
  • no inventory to purchase or stock
  • website and back office at minimal cost
  • company ships direct to your customer
  • support offered to all customers and members
  • one time or ongoing orders…optional in a lot of cases
  • to get paid you will need to meet monthly quotas/personal orders
  • products directly related to the niche… weight loss, beauty etc.
  • you can market on social media sites as well as friends and family

Dropshipping

Dropshiping
  • low costs to get started
  • no inventory to purchase or stock unless using Amazon
  • company ships direct to your customer
  • support is offered depending on the platform you choose to use
  • monthly costs will vary depending on your chosen platforms $0 to $100 is common.
  • orders can be one time or optional
  • less product and suppliers when you have chosen one niche.
  • perfect for the NFF Club. ( no family no friends left)
  • your marketing will be targeted to your niche

Exceptions

As you can see above, they are indeed similar. The exceptions come at the end of each model and the monthly costs. I think it really comes down to you and how comfortable you are with sharing/selling your wares and what you can comfortably afford to spend as you build your business. A few good questions to ask yourself:

  • Are you comfortable with approaching your friends and family?
  • Are you good with cold calling strangers or messaging strangers about your products? They say if you are 100% IN and you love love love what your products have done for you and your customers then it should be no problem getting yourself in front of hundreds of thousands of people on social media.
  • are you cool with not taking rejection personally?
  • are you cool with building a team? Recruiting others to join you…
  • is this model affordable for a few months ( give yourself 3-6 months as you build?

If you are not, that is okay too. We are just doing the comparison model here. But if the above is really not you and you know it…like you just cannot for any amount of would be profits get in front of your phone and record a live video or do a home party, then perhaps the Drop Shipping Model is the better choice for you. So much comes down to personality and where you are most comfortable.

Here is what you can expect from Drop Shipping:

  • U will work solely on your own
  • you can join some of the Drop Shipping groups on FB for feedback as you begin
  • build out your store ( website ) at your own pace ( or have it done for you at a cost)
  • choose a niche you love to share and chat about ( a blog on your site is helpful )
  • marketing on Social Media platforms using target markets ( Facebook is great for this)
  • no monthly or weekly meetings or home parties to attend.
  • you will have to tend to your store daily…keeping an eye out for sales and products no longer available or sold out. In short, stay on top of things and make sure it is all running smoothly. A couple of hours daily should be good.
  • can I manage the monthly costs without any sales as I begin my marketing efforts with advertising & platform costs such as Shopify & Sprocket? ( at least 3-6 months )

I found that giving myself a time-line to make those sales really helps. You have a target to reach and if you are not reaching it then you have some decisions to make and some hard questions to ask yourself.

  1. Did I really give it my best shot?
  2. Did I do everything I could to make it successful?
  3. What could or should I have done differently?

These kind of questions apply to whatever your choice is. MLM, or Drop Shipping.

Is There More?

Yes, but for today I didn’t do a comparison for Direct Sales here as it is a bit different. Usually and without any pandemics in the picture, Direct Sales involves buying a kit when you sign up and a home party plan is used as the platform for sales rather than individual/one-on-one sales. This is a great way to have a home business as well, just can be a bit more costly with that kit purchase, but you may have more leeway when it comes to monthly quotas and sales. This can prove to be very helpful if you are doing your home business as a hobby or part-time.

Again, it comes down to you and your personal preferances. I hope this gave you some insight or at least a few questions to ask yourself before you begin any new adventures. Listen to your ‘gut’ and those first initial reactions when seeing a potential home business idea for the first time. Follow that lead and you will probably be right in your choice.

Please be sure to leave us a comment or a question below. We love reading your comments and a reply is always promised. Perhaps you have tried one or the other or maybe life got in the way and now you are not sure which way to come back. Did you try MLM and your sponsor ditched you? Do you find it hard to work completely on your own? Let us know. Isn’t MLM one of those Pyramid thingy’s?

And that’s what we call A WRAP for today! I Hope you enjoyed reading this post as much as I did making it.


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