5 Challenges for Network Marketers in Developing countries

The attraction of the network marketing business can be very strong with all the glossy magazines, motivational presentations and sharply dressed up-line. As the saying goes, “all that glitters isn’t gold”. This statement is especially true for network marketers in developing countries who face additional challenges. If you are passionate about your network marketing business succeeding in a developing economy, understanding the challenges involved is crucial to your success:

• Disparity in the cost/ standard of living – A bottle of multivitamins offered by an MLM company at $50 maybe the average price in the USA or another developed country. For the average third world country, this price may just be too much. The average person simply can’t afford to purchase this product at this price, making the life of the seller extremely difficult.

TIP: Do your research on the MLM products offered by a particular company to ensure that there is sufficient demand and the product can be priced competitively. At the end of the day it comes down to sales.

• Undeveloped credit card culture: Unlike developed nations where credit card payments are common and generally accepted by most citizens, the majority of a developing nations’ citizens don’t have credit cards. Transactions are not simple procedures, as sometimes huge distances have to be traveled to receive payments in cash for one sale. This is extremely time consuming and may not be ideal based on the commission being received.
• The previous point is also tied into the fact that roads and transportation highways are not developed to allow for efficient postal service of products. A person in a developed country can go online, make an order and it arrives at their door within days. This is simply not possible in developing countries. Success here is heavily dependent on personal interactions which is not always ideal for high volume.

TIP: Rather than using a push strategy where you are trying to sell products to people, also try to attract sales to your business. Use classified newspaper advertising, flyers or make a specific location known for the products for pick up. MAKE PEOPLE COME TO YOU. Research and strategy has to be involved. don’t just make a blind jump into network marketing because it sounds good.

• Unstable exchange rate: If the country you are in has a declining exchange rate, this could make the cost of your products be constantly rising, which is bad for business, especially if your depending on repeat sales to build your network.

TIP: Again, strategy has to be employed here. Even if you are not a finance major, you can easily find out the exchange rate trend in your country. You may need to consider setting a higher price for your product to absorb any rate increases. If there is a decrease in the rate, you could offer your loyal customers a discount to keep them coming back.

• Import duties: Depending on what developing country you are in and the products you are thinking about selling, various import duties may have to be applied to the cost of the product which will make it more expensive for your local market. This may further add to the cost that the target consumer already cannot afford.

TIP: Research, research, research. Do your research to ensure that your products can still remain somewhat competitive in your local market. Most MLM products are usually quite exceptional in quality, which you can use to justify the higher price.

These challenges were not stated to demotivate you from your Network Marketing goals. There are tons of people doing big business in these developing areas, especially if they are “virgin territories “. the point is to understand what you are up against and find the appropriate avenues to achieve success.

In closing, the final tip is to consider the global internet network to build your personal network marketing business. Get on social media, start a blog, join online communities etc. There are millions of people on the web that would love your help to get started and join your business. The limit is the sky…

Bless