By Chris Kosman

When it comes to business ventures, risk is something that is inevitable. Everyone knows that when starting a business, one cannot avoid taking risks. Remember that when it comes to business, there is always the possibility of failure. One can never succeed in business until he or she accepts the fact that he or she has to take risks when starting a business. The sooner you accept this fact, the sooner you will succeed in your ventures. Risk may be inevitable when starting your own business, but no one ever said it couldn’t be minimized. There are indeed many ways to minimize risk when starting your own business. Depending on what you want to do, you can take several steps so as to decrease your risk exposure. One of the best ways to avoid risk is by starting your business with the help of multi-level marketing. Multi-level marketing, or MLM, is a type of marketing technique that can help you relatively decrease your risk exposure when starting your own business. MLM is one of the most effective and successful marketing strategies you can employ for risk minimization. The considerations for MLM success is multi-leveled, but of all things you should consider, market competition is most important.

The first thing you need to know about multi-level marketing is how it works. In a nutshell, multi-level marketing helps you out by providing you almost everything you will need when starting up a business. MLM is also known as network marketing and direct selling. As the names imply, you are basically required to just look for a market to sell to and sell the products. Everything else is handled by the multi-level marketing company. You will be supplied with the products and marketing items necessary to start your business. MLM success is easily achievable. As long as you know how to play your cards, you will be able to profit. There are certain things you have to remember when venturing into an MLM business. These things are very important to remember. This is because, as simple as it is to start a business with multi-level marketing, MLM-based businesses are hard to maintain as there are many outside factors that could contribute to business failure.

The most important thing you have to consider when it comes to starting an MLM-based business is your market competition. You can have lots of competition in the market, but basically, all of them can be categorized into two types. The first type of competition is unrelated competition. So what is unrelated competition? Basically, an unrelated competition is competition selling the same kinds of products but with different brands. Take this as an example: You are selling kitchenware, like knives and food containers. Brand A is what you sell to your market. An unrelated competition would also sell kitchenware, but would be selling Brand B kitchenware. This is generally a looser kind of competition as each brand usually has different selling points. For example, Brand A sells because kitchenware under this brand is very easy to clean. Brand B, on the other hand, sells because of its ability to resist high temperatures. You may be playing in the same market with unrelated competition, but you are basically selling to different types of people.

The second type of competition is related competition. Now, unlike unrelated competition, related competition is harder to deal with. Related competition is a seller in your market that sells the exact, same products you are. Related competition is basically a seller that sells the same brand of products you are selling. In a normal business setting, this would be called cannibalism, as two of the same brand fights each other for the market. This is comparable to having two McDonald’s sitting right next to each other; two McDonald’s will be fighting for one market. But since the conditions are different in multi-level marketing business, this cannot be considered as cannibalism. Instead, this is considered as normal competition. It is harder to cope with this kind of competition because there is no telling which seller a customer will go to. Since the same products are sold, it is hard to capture a loyal following. In order to achieve MLM success, one has to factor in market competition greatly.

When you are looking for a market to penetrate, make sure to check out the existing players first. If given the choice between markets with unrelated competition versus markets with related competition, the choice is simple: Go for the one with unrelated competition. You can achieve more MLM success in a market with unrelated competition. Even if you have similar products, your products are still not entirely similar. Even if you sell the same things, you still have different selling points. You still have an edge in markets with unrelated competition. This type of competition is very healthy, actually. If you have a choice of course, go for a market that is not so saturated with the type of product you are selling. Make sure your product still has appeal in your market. Avoid involving yourself in markets that full of related competition. You will have a very difficult time achieving MLM success here. This is especially true if you are not the first one to penetrate the market with the products. People tend to have more loyalty to an old-time seller.

If you want to achieve MLM success, you have to know how to feel a market. Also, don’t hesitate to look for different MLM companies. Look for new products, relatively unknown to the market you plan to serve. The newer your products, the more appealing they will be to your market. Of course, try not to get something to new that it is unknown. Make sure the products you will sell are trustworthy. This will make your job of selling a lot easier. If you know how to find the right market, it will be hard for you to fail. Multi-level marketing can indeed take you to many places.

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MLM Success and Market Competition

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