Corona Virus Effects on Network Marketing or MLM Industry

According to Softwaresuggest:

MLM industry is operable in more than 100+ countries, and it is one of the best industries to stay profitable. Currently, the MLM industry is valued at around 167 billion USD, which is estimated to reach around INR 645 billion by 2025.

This is an estimate before Corona Virus come in. But I feel these stats are subject to change(increase) because of the effects of coronavirus.

Here are some effects or changes that are occurring or will occur throughout the industry:

1. Companies are focusing on Health and Wellness product. But why companies are doing that?

Here is the current status of different industries from which you can clearly see, why direct selling companies are also focusing on this segment.

This segment stays unchanged even when bad economic times. Because people are always going to take care of their health. And in this type pandemic times, demand for health and wellness product always increases.

According to Statista statistics, Wellness is the largest product category in the direct selling industry.

When coronavirus hits, we all feel the need for vitamin C supplements and other immunity booster products. So companies who were selling these products earned a quick buck. That is the advantage of quick move maker.

2. Digital Meeting:

Meeting and interacting with people is the heart of this business. Before the Corona Virus outbreak, we mostly meet and greet people in person. And companies organised meeting in offline. Now the whole concept is changed.

And I personally love this change. Now meetings are organised in Online and entry is completely free.

In India, a typical network marketer pays INR 300-1000 to attend an offline meeting. Which was an overhead cost to get proper education and excitement.

Here are some highlighted points:

• Free Entry: Most of the companies are providing free Product training and Personal Development Training. 
• Flexibility: Now, MLM Entrepreneurs have the freedom to juggle meetings and works because they aren't tied down to a fixed schedule. In traditional meetings, times are set, and the entrepreneur has no power over this, forcing them to work their schedules around these dates. 
• Fearless Interaction: In a crowded place, we feel fear to ask questions. But in this digital platform,  we can ask questions/doubts more easily. 

Read: Best Free Online Platforms for MLM Conference

3. Current Scenario:

Many people lose their job because of the Corona Virus outbreak. Instead of the Health and Medicine industry, most of the industries got badly affected by this pandemic. So where these people will go?

They will look for work opportunities and obviously most of the people will join network marketing.

Also, people are now more careful about their financial security. So many people with a good profile will join MLM to create their financial security.

[Note: They should be your focus to create a sustainable business].

4. Companies are Tying Up with MLM Companies:

Distribution of goods in traditional business is suffering, so many manufacturing companies will tie up with direct selling companies. As they have a better distribution system. (example- In the early lockdown days in India, ITC Pvt ltd tied up with Amway to sell their health drinks named B-Natural)

Read The Full News: 

ITC ties up with Amway to expand the distribution network of its immunity-boosting products

5. Delivery System:

Because of this pandemic, many companies updated their product delivery system. Before that companies are based on buy in-store and now almost every company has an online buying system. (Example- Vestige comes up with an updated delivery system to deliver to its distributors, Amway introduced free delivery over RS 500 etc.)

So if you’re already in an MLM company your product delivery system already updates. Now it will help you in expanding your business more quickly.

6. Updated Prospecting System:

We used built contact list via participating in different activities, meeting people in here and there. But now the situation changed so much, outside activities are limited. So most of the network marketers switched to Facebook, Instagram and other social media to find new people and recruit.

Useful Resources:

If you're interested in building network marketing business over Facebook. Here's the Free PDF to Download:

27 Strategies To Build Your Network Marketing Business Using Facebook

Statistics About the Direct Selling Industry:

https://www.statista.com/topics/4883/direct-selling-market/

Share your thoughts and opinions in the comment box down below. And share this valuable article with your network marketing friends.