Is MLM over-saturated at the current market? - Seedly
 

Entrepreneurship

Is MLM over-saturated at the current market?

Is MLM such as insurance, Amway over-saturated at the current market? I see a lot of such products are moving to an online platform to cut the commission and omit the hard-selling approach.

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Insurance as a product is not MLM. The recruitment structure for advisors are.

But many of these direct selling products still require a manpower base. They're products that are sold and not bought.

Only when such companies become massive and consumers are buying on their own volution, will the direct sales structure reduce. See Tupperware as a great example.

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Chia Ming Ho
Chia Ming Ho

4w ago

Hi Hariz, with all due respect, i agree Insurance product is not MLM but risk management tool, the business structure is , just like any other direct sale company like Amway. I agree that some product is not sustainable by itself over long run - look at lamberger. My question is in the context of enterpreneur ship, is MLM structured type of business still profitable? Is it over-saturated now in the current market given that there are massive supply of agents compared to shift of demand appetite from conventional to ecommerce or independent advisor.
Hariz Arthur Maloy
Hariz Arthur Maloy

4w ago

Direct sales would always work. MLM will not. There's a distinct difference. When members get remunerated more to recruit than to sell the product, it becomes MLM. Those never last. But direct sales businesses, will continue to work. It's just two Ps (promotion and place) in the 4Ps. Direct sales is not a "business model". It's a means of marketing and distribution.