The multi-level marketing (MLM) road is littered with potholes. According to an AARP Foundation survey, only about 25% of MLM businesses ever turn a profit. When considering an MLM company as a business venture, it is extremely important to know the company and its products before you invest.
AMSOIL is one of the hundreds of companies with a distribution model defined as network marketing or MLM marketing. Their primary product, synthetic motor oil, is the first of its kind and backed by the automotive industry as superior to non-synthetic motor oil.
The combination of a great product and a solid networking model makes AMSOIL a popular company to work with. But, how exactly does MLM work, and is AMSOIL the right company for you? Keep reading this review for honest answers.
The Basics: How Do MLM Companies Work?
Like all product-based businesses, disruptors earn revenue through the direct retail sales of a product to consumers. However, with network marketing distributors have the opportunity to earn commissions from the sales of distributors they recruit into the business (their distribution downline).
Those that brave the waters of a challenging MLM business model have essentially two paths to success – build out a large customer base with direct marketing or build out a network of distributors that do the same.
Pyramid Scheme and MLM: An Important Distinction
Although network marketing is sometimes referred to as “pyramid marketing”, it is important to realize that this type of marketing is not the same as an illegal “pyramid scheme”. In order for the MLM company to be legal, earnings must come from the sale of products and not directly from the recruiting of distributors.
Caution: Be Aware of Wolves in Sheep's Clothing
Some so-called MLM opportunities are in reality, scams. Others are borderline legal and could be shut down at any time. AMSOIL is a proven, longstanding MLM company with a genuine opportunity to enter into the profitable synthetic lubricant industry without a large investment.
The AMSOIL Networking Model
AMSOIL sells high-quality synthetic oils. In 1968, Albert J. Amatuzio founded Life-Lube Inc. At the time synthetic oil was used exclusively in jet engines.
Amatuzio was no stranger to synthetic oils. He joined the airforce shortly after World War II and flew America's first operational jet fighter, the F80 Shooting Star. It was in the Air Force that Amatuzio first saw the opportunity to take superior synthetic oils to the automotive market.
The company struggled to gain consumer confidence in the “big oil” controlled marketplace. Amatuzio remained confident that if consumers were given the opportunity to learn about the benefits of synthetic oils sales would follow.
He decided the best way to accomplish this was a direct sales distributor model for his business. The AMSOIL Dealer network was established in 1973 on the concept of building brand awareness through word of mouth and the sharing of profits through network marketing. The direct door-to-door sales and commissions you make are not unlike affiliate marketing businesses.
Getting Started: The AMSOIL Way
The good news or bad news, depending on how you look at it, is you can start your own AMSOIL Dealership for only $15, $30, or $65, depending on which new dealership option you choose. You can find AMSOL authorized dealers online that will be more than happy to show you the ropes (join their downline).
The first step is to fill out a simple one-page form with your personal information. You will be asked to choose one of three options:
- Six-month trial Dealer registration and Starter Kit ($15)
- Twelve-month regular registration and Starter Kit ($30)
- Twelve-month registration and Business Manual ($65)
However, don't be fooled by the low bar to enter into the business. Just like any startup, you will need to spend time and money to build the business. You will quickly learn the business through an abundance of support materials available such as:
- PowerPoint presentations
- Business blueprints
- Field sales tools
- Business development tools
- Webinars and study courses
The Benefits of AMSOIL MLM
The most important factor in choosing an MLM company is the products. With AMSOIL you get an industry-recognized brand backed up by over 50 years of market testing. The tagline “first in synthetics” says it all.
Other advantages of AMSOIL MLM are:
- No inventory requirements
- No capital investment required
- No territory restrictions
The synthetic oil market is far from saturated and a determined dealer has only to convince others of the product's value. Of course, that is easier said than done.
Is AMSOIL Right for Me?
In order to maximize your chances of success, you will likely need two qualities – passion for the product and excellent sales skills. If you can't claim these two qualities, you would need to develop them.
Even great salespeople have trouble selling products they don't know well and believe in. And, without excellent people skills, you are going to struggle to set up meetings, make sales, and convince others to do what you do.
If you have a love for the automotive industry, know how to talk motors, believe in the value of synthetic oil, and know-how to sell you stand a good chance to power through as a winner in this MLM opportunity.
A Good MLM company to Consider
The secrete is to find the right MLM company for you and go out and build a network of people that share your passion for the product. AMSOIL isn't for everyone but, as a low-budget startup, it is an attractive option.
In order for you to develop your skills, you should consider taking a free or paid marketing course. There are a variety of digital marketing courses you can take from businesses that can help you enhance your skills. As of writing this, over 80,000 new marketers have taken the Online Business Builder Challenge (only $7), and that might be a good starting place for you as well.