Launching your own multi-level marketing (MLM) business provides the potential for big profits. However, in order to succeed you need to understand how these companies work and navigate the complex payments ecosystem.

MLMs defined.

MLMs work like this: You sell a line of products while simultaneously recruiting other sales representatives. You receive a portion of the profits from the sales that they and anyone they recruit make. 

Assuming that you do well and form a dynamic and successful network, you can look forward to extra money in your pocket.

The high-risk business categorization.

Unlike pyramid schemes, MLMs sell legitimate products. Even so, they are often painted with the same brush and suffer from a less-than-stellar reputation. 

Recognizing this, many payment processing companies refuse to partner with them, making it necessary for most to choose a company that specifically markets itself as providing payment processing for MLM businesses.

There are a few reasons for the “high-risk” categorization that dogs MLMs and many other types of companies. 

These include the perception of poor quality control for their products, frequent chargebacks, high turnover rates, increased chances of security breaches, and unpredictable growth. These combine to make conventional lenders squeamish about throwing in their lot with even the most above-board of MLMs.

High-risk payment processors.

Given the reluctance of traditional institutions to help you take customer payments, you might be wondering how you can succeed in the MLM arena. The good news is that there are many reputable providers who specialize in working with companies like yours, albeit for a price.

In order to take on the added jeopardy of partnering with you, these companies will require you to undergo a more rigorous and often time-consuming application process. 

They will also charge you more in per-transaction fees and may attach other costs to your agreement as well. 

However, a good high-risk payment processing provider will help you to navigate the complex regulatory and security landscape unique to MLMs.

Additionally, they will assist you in getting payment devices, gateways, and software that allow you to take payments securely and efficiently. They will also provide troubleshooting and technical assistance to get your business up and running in the event of outage or equipment failure.

Finding the right high-risk payment processor.

Just what qualities should you seek in a high-risk provider? For one thing, focus on one that has demonstrated a history of working with MLMs. Having this knowledge means that they will have the tools and the experience to help you succeed in this highly competitive and sometimes uncertain environment.

Next, look for one with competitive, transparent pricing. Although higher fees are a given, there is room to negotiate on some of the charges imposed. 

Research will show you that not all providers are alike, so settle on one with clear, competitive rates and agreements that are not overly onerous.

Furthermore, choose a company with customer service that is reliable and available on multiple channels. You should be able to speak to a knowledgeable human agent, communicate via email, and have access to user forums and a knowledge base as well as live chat. 

The company should be committed to helping you overcome obstacles that arise; after all, when you succeed, so do they.

Finally, find a vendor that can grow with your business. It should offer state-of-the-art POS hardware and software and allow you to take multiple forms of payment and currencies.

The MLM world is a volatile, exciting and potentially lucrative one. With the right combination of hard work, luck and persistence, you have the potential to succeed. 

Collaborating with the best high-risk payment processor and the modern POS solution they furnish just might give you the extra tools you need to rise above your competitors.