Common mistakes MLM business owners make
One of the most common types of entrepreneurship is from people who enter into an MLM. This has the potential to provide good income, but there are some things you should be aware of as you try to make it a viable business.
1: It’s not get rich quick. Those who are making a viable income with an MLM have put years of blood sweat and tears into it, much like other types of entrepreneurship. Be aware that it is hard work, and ongoing work to make a consistent and successful income.
2: Know your profit and loss! This can be a muddy area with MLM. Are the products you are purchasing via the MLM for your personal use a business expense? Do you need to collect or remit sales tax for your product? Are you making use of all the deductions and expenses available to you? These are all questions an experienced CPA or bookkeeper can answer for you, and help you see if your profit is as large or as small as you think it is.
3: Run your business with integrity. This is true for any business owner, but especially true for those involved in MLM. Some companies encourage dishonest and predatory tactics. Don’t lose friends at the expense of making a buck! Learn to balance your excitement and eagerness to grow your business with being respectful of others’ boundaries.
These are just a few things to consider when getting involved with an MLM. For any business owner just starting out we highly recommend you start on the right foot with a good bookkeeper.