Thanks to the advent of technology nowadays, it brings several conveniences to people as well as easily promoting businesses and their products and services.
What is Multilevel Marketing?
MLM, short for Multilevel Marketing is also called referral marketing, network marketing or pyramid selling. It is a marketing strategy for the sale of services or products where the revenue of the company is derived from non-salaried workforces selling the company’s services or products. The earnings of the participants are derived from the binary or pyramid-shaped compensation commission system.
If you are well-aware of the basics of internet marketing, then you can easily understand the power of online MLM. The internet serves as one of the most powerful tools in automating most of your recruiting efforts. You can use it to contact, answer questions, present opportunities and follow up.
Facts About MLM
The multilevel marketing business model did not appear recently. It actually evolved over the years and now incorporates new methods of commerce and communication.
Schedule flexibility is probably one of the main reasons why most people find MLM attractive and convenient. With at least 77.4 percent of its workers being females.
DSA or Direct Selling Association is the national trade association for companies that manufacture and distribute services and goods sold directly to consumers. And based on their recent stats, around 20 million Americans use MLM or multilevel marketing with 3.5million of them living in the Northeastern US.
MLM Companies Labeled as High-Risk
It is not a secret that MLM is deemed as a risky venture in terms of merchant accounts. The caution is extreme that some providers of merchant accounts will refuse to offer or even deny merchant account applications from MLM businesses.
And it does not matter whether you have a good credit history or a stellar record with other kinds of businesses. Most banks and other financial institutions will still doubt working with you.
MLM companies are often associated with a potentially high risk of chargebacks and unpredictable growth patterns. But, the main reason would be the industry’s notorious reputation for legal risks.
According to the United States Federal Trade Commission, since MLM companies generate a large amount of money through recruiting and selling products and services to others for resale, they amount to a pyramid scheme. And this scheme is usually backed with frauds and other illegal activities by some other players in the MLM business.
And this scheme is usually reinforced by the business itself. The high levels of chargebacks, the sudden closure of an MLM outlet or the requests for refunds by clients can be the result of poor customer services and communication.
Understanding MLM Merchant Accounts
One of the best benefits of the MLM industry is that just about anyone can start an MLM business and does not need a huge money to get started.
The problem, however, is that the structure comes with some drawbacks with grifters and scammers exploiting the structure of the business for years and most providers thinking of it as another kind of pyramid scheme.
But, it does not mean that it is impossible. You’ll be relieved to know that there are some merchant account providers out there that specialize in high-risk accounts. And applying for one is worth a serious consideration since the right MLM merchant account offers several benefits.
For instance, high-risk merchant accounts have a lower risk of termination. This is because most high-risk providers offer a merchant account with chargeback and fraud management systems. They are also prepared to deal with these kinds of situations.
Another benefit of having an MLM merchant account offers better security. A high-risk merchant account has cautious and tested detection techniques in each and every transaction. Merchants in the high-risk industry are extra wary of frauds and use secure and thorough measures in order to ensure that the cards they use are legit. This also helps protect everyone from theft and fraud. From the merchant account providers to the holder and to the customer, everyone benefits.
Lastly, MLM merchant accounts open up new opportunities to new markets. And with the right merchant account provider, you get to offer sales over the phone and online. With a website, as long as someone has an internet connection, wherever they are in the world, they can make a purchase. This way, you can reach new audiences and expand your business all over the world.
Working with iPayTotal
iPayTotal is a reputable provider of merchant accounts for the businesses that fall under the high-risk category. And working with us to obtain an MLM merchant account is rather easy and quick.
Our application takes the least amount of your time in terms of submission and approval. What you only need to do is just fill in forms, apply and submit, then wait for our processors to review and approve your application, with approval will be done within 48 – 72 hours.
Some of the documents that you will need to submit in order to acquire a merchant account from iPayTotal include:
- Passport copy
- A government-issued ID
- Business bank voided checks
- Utility bill
- Most recent processing statements for the last 3 months, if applicable
- Business bank statements for the last 3 months
- Personal bank statements for the last 3 months
iPayTotal offers customized credit card payment processing solutions for MLM business to cater your demanding requirements. Not only that, we also ensure a secure payment gateway that can help reduce fraud and chargeback risk while staying compliant with industry regulations. Our merchant accounts feature the easiest integration, feature-filled checkout, online onboarding, and the best performance and great customer service.