I’m going to introduce you to a business model that combines a home-based credit repair business opportunity with an MLM pay structure. It’s a brilliant business model for those that want a part-time or even full-time home-based business. When the company started in 2004 they had more of a traditional business model. They had independent salespeople that earned straight commissions and could not build a team. About 10 years ago they switched to a credit repair MLM model. Since then they have exploded in growth.
If your reading this then one could assume that you look favorably on MLM or network marketing opportunities. For those that do not, it may be because they perceive there to be a high failure rate among those that try MLM businesses. Let’s explore that for a bit.
MLM or Network Marketing vs. Traditional Small Business
According to Forbes.com, 20% of traditional small business start-ups fail in the first year. And, 50% fail in 5 years. Compare that with research on people that start an MLM business. 50% fail in their 1st year and 90% fail over 5 years. So, the failure rate is higher in a typical MLM opportunity than a traditional small business.
Most would look at the statistics just mentioned and stay away from MLM because 90% fail in 5 years. Others would look at the stats and jump in because they see that 10% succeed! What people don’t realize is that the 90/10 rule applies to most opportunities that aren’t a W-2 job where you get a salary. In opportunities where people must generate their income, 90% will fail. But that does not scare away those of use that believe enough in ourselves to become one of the 10%.
The primary reason why the failure rate is higher in MLM is that the upfront investment is so low. There’s less ‘skin in the game’. This makes it much easier to walk away instead of fighting to make it work. Because of the low start-up cost people don’t research the business before they start. People don’t treat it like a business. For some reason, people that start a network marketing business treat it with less care than if they had made a bigger investment or commitment.
A Credit Repair MLM – Smaller Investment, Lower Risk
A credit repair MLM is a brilliant business model because it reduces the high cost of starting a credit repair business. Therefore it also reduces the risk. In addition, there is a huge market of consumers in need of credit repair. Beyond that, there is a growing number of people looking for a second income.
Consider These Facts about the Market for a Credit Repair MLM
Approximately 35% of the U.S. adult population have a credit score below 620. This is considered sub-prime and will not get most qualified for a mortgage. That means that about 86 million people in this country at some point are going to need help with their credit.
44 million people in the U.S. have a second income or side hustle. It’s becoming more apparent that many Americans are having a difficult time meeting monthly expenses on one income alone.
Given these numbers, there is a big opportunity to provide helpful services and to build a large team of people offering the services.
Why a Credit Repair MLM is Inherently Different Than a Typical MLM
Because credit repair is a financial service people perceive a person offering credit repair to be more like a traditional business person. The customer doesn’t need to be explained how an MLM works because they are not participating in the business at all. They are simply a customer of the service. It’s not that anyone is hiding anything it’s just that the business model is irrelevant to the customer. And, the business model has no bearing on the quality and performance of the service. In fact, because the main company provides the service and not the person in the field, the quality of the service is higher and more consistent.
Network with Other Professionals
Finding customers is a relatively simple process. You can and should let people know that you’re in the credit repair business. They may need your service or know someone that does. Or, they may be looking for a second income. But the best place to find customers is to talk with those that see people with low credit scores daily. People that work in real estate, mortgage, automobile, solar, and banking are great people to talk with. They benefit greatly by referring their credit-challenged prospects to you. And again, there’s no need to explain the business model. You’re not trying to get people into the business. You’re just trying to help their credit-challenged prospective clients.
A Huge Market Looking for Extra Income
And, yes there are millions in this country looking for that second income stream. Most desire to earn between $500 and $1,000 a month. They are not necessarily wanting to earn six figures. That means that if they simply find a few customers every month they will achieve their income goal and stay with the business long term. They may even decide to invest more time and effort into it. For those that want to earn significantly more, simply go find a lot of customers and people that want to earn $500 a month.
People don’t have to recruit. If they just want to earn that $500 to $1,000 a month they can do that from selling the services alone. They do not have to recruit anyone into their business. But note that if someone wants to earn a significant income or turn it into a full-time career, building a team is essential.
Learn More About a Credit Repair MLM
I started working with a credit repair MLM in 2012. The business has grown to the point where I earn a six-figure income out of my home office. If you’d like to learn more specifics about this business model watch the 30-minute video below. If you like what you see then click to ‘Book a Phone Appointment’ with me. We’ll talk about what you want to accomplish with a business. I’ll share my experience and what it takes to build a successful credit repair MLM and then you decide if it’s right for you.
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