Is Multi-Level Marketing a Legitimate Way to Sell Real Estate?
Multi-level marketing is something that has been going around for quite some time. A number of people have tried it out, but unfortunately the majority of reviews indicate that is most often unsuccessful and highly risky. Considering how big of a thing real estate is, it would seem like using this method would only increase the risk potential dramatically! There are a couple of reasons as to why this style of marketing doesn’t work in general, but that also apply to real estate. Stick around to find out what they are!
Lose of Profits
For starters, in order to utilize multi-level marketing, you need to hire people to do your work for you, right? In terms of real estate, you would more or less be handing over a house that you fully own to someone else in order to avoid the difficulties of business negotiations. Upon doing so, you also lose the majority of the value of your house in that you will only receive a cut from the profit made by it. Not only that, but you lose all control over how the house is sold, as your employee will be the one doing the negotiating. It is highly unlikely that any one person will own so much property and have so little spare time to simply hire a real estate agent for their properties who can keep track of the on-going market for them. As far as can be seen, no additional profit could possibly be made by handing over the reins to a number of other people for each of your properties.
Training Up Your Own Competition
Not only are you basically giving your money to the employees you hire to sell your houses, but you are also training them on how to get into real estate on their own! If they are capable of selling your houses and making a profit, what’s to stop them buying up some property of their own and selling that too? Do you see how ridiculous this sounds? You, as the owner of several properties, are given work and money to someone who has none; but the end result is that your property is sold and you’ve made some money, whilst your employee has learned how to buy up his own property and start selling that for himself without the need to give you any cut at all! So now, you’ve lost a percentage of the value of your properties, as well as trained up new competitors to force you to sell at a lower price in the future!
Stick to What Works
As you can see from the reasoning above, multi-level real estate is just asking for trouble! The risks are so much greater for the house-owner than traditional methods. Based on that, the best thing for you to do is to stick to what you already know works! Look after your own property and sell it on your own time so that you can be assured full profits!