Networking business, also known as multi-level marketing, has become very popular in the last few decades. And no wonder - people see multi-level marketing as a source of passive income. There are a lot of networking businesses in Nigeria, and they offer a variety of services. But who will you trust? Which one to choose? Today we will help you with this dilemma.
List of networking businesses in Nigeria
In this list, you will find some popular companies that expanded in numerous states. They are put in no particular order.
- Uno Premier;
- Forever Living Products;
- Alliance in Motion Global Or AIM Global;
- Total Life Changes;
- Trevo LLC;
- Jeunesse Global;
- Royale Business Club;
- Organo Gold.
There are many other companies that are worth mentioning, but these already have high qualities and proven themselves on the MLM market. You are free to try any of them and see if they suit you or not. If you want to find a company on your own, be careful - there a lot of fake MLM businesses that use people to get money.
What is multi-level marketing?
The multi-level marketing is also called network marketing or referral marketing. The marketing strategy is like a pyramid. There is the company (the top of the pyramid) that receives the profit from two sources - from direct sales and commission. The last one is based on the sales that were made by the recruited team members.
Well, how then the members get their rewards? The rewards are based on the volume of sales they make. Members can even recruit others and still get their commissions from sales. The next level of members get the commissions from sales too and can recruit other individuals. That’s why this marketing strategy is called 'the pyramid-type'.
There are different types of Multi-Level Marketing (MLM):
1. Uni-level Matrix MLM Compensation Plan.
This plan is suitable for people who already have experience in marketing. It is a 'V' shape model - all the downlines are directly under you. You will earn from every sale or purchase. The problem is that in most cases there is a limited amount of 'levels' from where you will get paid. Usually, there are no more than seven levels.
2. Binary MLM Plan.
Using this compensation plan, you can have no more than two people on one level (that’s why it is called binary). You will place every sponsored person directly under you, but only two per level. Sometimes the long connections may be called as legs or power legs.
3. Forced Matrix MLM Plan
In this plan, you can have a specific amount of people per level. You can sponsor as many people as you want to, but you need to have the place in your group.
4. Breakaway MLM Plan
One of the oldest structure. It is similar to uni-level when you can recruit as many people as you like. However, when you attain a certain level you can 'break away' from the people above you and from now on you will not pay them anything. And you will still earn from the downline. This plan suits more experienced people because of the risk being detached from your downline.
5. Hybrid Compensation MLM Plan
Some companies may combine one or more traditional plans together. Then it is called a hybrid compensation plan.
But is this MLM company legit?
It is worth mentioning that the multi-level marketing is illegal in some jurisdictions. For example, you will not find any type of MLMs in mainland China. All of them are considered as a type of pyramid scheme.
Also, some of the illegal pyramids may present themselves as MLM businesses. If you want to be a part of the MLM business, then it’s better for you and your money to take part in the 'checked' programs. But how can you say if they are legit or not? Here are some essential points that will help you choose the right company:
1. It operates for more than four years.
It’s very simple - an organization that existed for an extended period will have more experience, more clients, and more reviews.
2. It has a lot of Physical Offices (at least more than one).
Usually, fake multi-level marketing companies have no more than one physical office. Why so? The do it because it’s easier to flee when you are only on the internet. Choose companies that have at least two physical offices in different states of Nigeria.
3. It has valuable products (consumable, competitive and unique).
A good company will always have good products. There is no need for them to manufacture products that are of bad quality since they are concerned about their clients and their reputation. Keep this in mind when making your choice.
4. Approved by the local Government.
The easiest way to check that an MLM company is legit is to see if it has been endorsed by the local government (or from an organization that regulates the multi-level marketing businesses).
If the company doesn’t match even one of these criteria - find another one, don’t risk your money.
Here is animportant thing that you should remember. Even though the multi-level marketing is believed to be a passive way to gain money, you will still have to work. You will not get any success without working.
Remember that every real MLM business will offer you cooperation in exchange for your services (for example selling the company’s product). If the business is telling you that you will get money without any effort - stay away. As they say 'the only free cheese is in the mousetrap'.
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