Multi Level Marketing (MLM)
In a typical multi-level marketing or network marketing arrangement, individuals associate with a parent company as an independent contractor and are compensated based on their sales of products or service (as well as the sales achieved by those they bring into the business).
In a legitimate MLM company, commissions are earned only on sales to the end-user, who is often also a distributor. No money may be earned from recruiting alone ("sign-up fees"). Some companies produce revenues primarily by attracting new participants or selling them marketing services, as opposed to selling actual products. One must analyze the compensation plan to determine whether participants are paid from actual sales to customers and not from new-recruit bonuses or business support sales.
Multi-level marketing has a recognized image problem due to the fact that it is often difficult to distinguish legitimate MLMs from such illegal scams as pyramid or Ponzi schemes. NM/MLM businesses do operate legitimately in all 50 U.S. states and more than 100 other countries, and new businesses may use terms like "affiliate marketing" or "home-based business franchising".
Below are some choice insights about MLM:
Making Money Through Multi Level Marketing
Why Do Intelligent People Choose MLM?
Making Money Through Multi Level Marketing
Making money through multi level marketing is another way to increase your earnings. For people who would want to conduct business from their home, owning their time and write their own paycheck without creating their own product? MLM will work. If you have good leadership skills a self-starter and a hard worker where selling and promoting products does not give you shivers, MLM will work even better.
If selling and promoting however is not your stronger points, MLM might prove to be a challenge for you since your success will largely rest on your ability to create down line. Aside from the advantages of MLM already mentioned, good MLM network provides their marketing and business plan. All the marketer has to do is basically to follow the directions that have already been set.
When joining an MLM business team, the following are suggested.
Choose marketers that are good developers of people - Many MLM business networks focus only in sales. Some do not even want its members to develop their own marketing tactics. Good marketing network do not just focus on numbers. They create good leaders out of their downline.
Work only with the top marketers and earners - working with top earning corporation assures you of the success of its programs. It has eliminated much of the trials and errors that often accompany network that are not.
Attend weekly conferences and meetings on marketing strategies - Attending meetings enables you to update your skills and compare notes. This are also venues for good motivation especially to newer entrants. Your upline should be able to give you one on one support. Field coaching and skills reinforcing on the job has always been a very important component for good MLM team.
Training website and free custom website - this should be providing you with newsy messages that could motivate you to action and strengthen the bond of the teams. You should be provided with methods of generating your own leads instead of buying them.
Methods of effective promotion.
Referrals - this is your real business multiplier. Offer freebies or discounts to people who are willing to give you referrals and endorsements.
Word of mouth - Very effective and will cost you nothing. However, a single word from a dissatisfied customer can have the same multiplier effect.
A website - Creating your own website for customer to visit is a very effective way of selling online. If correct web designs are applied to your site it will encourage clicks and leads you have found a winner.
Business card exchange - There is nothing as enduring as business cards to make you remembered. This has been applied for years and years and has not lost its purpose. Technology has changed so much and many practices made obsolete. Not the business card.
Word of Caution.
Multi level marketing has proven successful to only 5% of its members. The majority of the 95% fall out within the week, most in a year's time. Your multi level marketing upline will sell you the idea that you do not have much to do once your downline is established. This is partly true and mostly incorrect.
Any worthwhile endeavor needs hard work. Real downright hard work, especially so in personal selling. This is why your upline will be working at increasing the downline for as far as it can take him. If someone says that it is a laid down work, that someone is pulling your leg. No matter, if you possess the above qualities, MLM marketing should not be a problem for you. It is a real moneymaker even if only a small percentage of those who joined have something to show for it.
Why Do Intelligent People Choose MLM?
by: Patrick Ryan
I have never really figured this question out myself. I have run into a few people who have had limited financial success in MLM, but the entire program just does not ad up. First, most MLM's lead you to believe that a low start up of $50 to $100 investment can make you rich, really rich in little to no time at all! Come on, aren't most of you smart enough to realize that is a pipe dream. How many millionaires claim they started up in a MLM program for $50 and made their fortune? I have never, to date ran across one person who fits this category. If $50 can make you rich, then why haven't you started? Or, if you did start in an MLM program, you probably did not achieve financial freedom, did you?
Second problem that I see is the compensation plan. I do not think that most people understand how the money is made, or more exactly, not made. MLM's have down legs, up legs, branches, you name it. It's like a tree, roots going down, trunk and branches going up. Now let's think about that for a minute. The buds and leaves are the beauty of a tree; this is what I consider the original group who started the company. The branches are the close friend of the people who start the business, so they do OK. Then there is the trunk, this is the main support for the branches and leaves correct? To me, this is the majority of the workers who buy into the MLM. They do most of the work while the branches and leaves strive and get all the glory. Then, the roots are the few people who join so late, they never see the light of day, hidden under the dirt, but still feeding the truck, branches and leaves. For example, I meet a lady who bought a few thousand dollars of products, worked her butt off for six months and got her first check in the amount of $4.00. We spoke because she was very interested in what I do, even though it is a world of difference, she is sticking with the MLM company so she can sell off the garage full of junk she bought. Just like I said, hidden under the dirt and never see the light of day!
Why would someone choose to do all the work and make pennies on the dollar? There is no financial freedom in MLM. MLM is worse than a job. At least with a job you collect a paycheck that is mandated by the Federal Government to be at least a minimum wage per hour, not less than minimum wage for over six months worth of work!
What most people don't know, especially MLM'ers, is there is a totally different compensation plan that can offer financial freedom. I am talking about a home base business sector that really offers financial freedom from working at home, does require some work; some investment (usually less then buying all the MLM junk products) is easily duplicated and best of all, pays only one person. Yes, one product that pays one person! This is known as Direct Sales. No up line, no down line, just money in your pocket the day you make the sale! You don't even wait for the parent company to pay you, the client pays you direct, and then you forward the balance to the company. Best of all, you do not stock or ship the product, the company does all this for you. How refreshing!
Let's look at one program that I know of for a second. One sale generates $1,000 in profit. If one sale is made per week, that is $50K per year. In this program, your first two sales are passed up for qualification purposes. This offers you massive leverage, as each person who start will give you two training sales. Lets suppose that only 40% of the people actually get started, that's 20 people passing up two sales, or a total of 40 sales at $1K each is another $40K profit that you did not have to work for. In addition, there are two more products. The next product offers a $5K profit to the qualified advisor. Company history proves that 1/3 of each base line product buys the second product. So, you have 50 sales plus 40 sales passed up equals 90 total sales. 90 total sales multiplied by 33% equals 30 sales in the second product that is repeat business from your client base with no additional work. That equals 30 people multiplied by $5k equals $150K in repeat business in the same year! Now, the third product this company offers pays an incredible $8K in profit to the qualified advisor. Again, company history shows that half of the people who by the second product will buy the third and final product. So, 15 repeat sales at $8K equal another $120K in revenue! To sum this up, $50K + $40K + $150K + $120K = $360K in one year!
Again, I must ask, why do " Intelligent People" choose MLM as a path to financial freedom? I do not know!
In a legitimate MLM company, commissions are earned only on sales to the end-user, who is often also a distributor. No money may be earned from recruiting alone ("sign-up fees"). Some companies produce revenues primarily by attracting new participants or selling them marketing services, as opposed to selling actual products. One must analyze the compensation plan to determine whether participants are paid from actual sales to customers and not from new-recruit bonuses or business support sales.
Multi-level marketing has a recognized image problem due to the fact that it is often difficult to distinguish legitimate MLMs from such illegal scams as pyramid or Ponzi schemes. NM/MLM businesses do operate legitimately in all 50 U.S. states and more than 100 other countries, and new businesses may use terms like "affiliate marketing" or "home-based business franchising".
Below are some choice insights about MLM:
Making Money Through Multi Level Marketing
Why Do Intelligent People Choose MLM?
Making Money Through Multi Level Marketing
Making money through multi level marketing is another way to increase your earnings. For people who would want to conduct business from their home, owning their time and write their own paycheck without creating their own product? MLM will work. If you have good leadership skills a self-starter and a hard worker where selling and promoting products does not give you shivers, MLM will work even better.
If selling and promoting however is not your stronger points, MLM might prove to be a challenge for you since your success will largely rest on your ability to create down line. Aside from the advantages of MLM already mentioned, good MLM network provides their marketing and business plan. All the marketer has to do is basically to follow the directions that have already been set.
When joining an MLM business team, the following are suggested.
Choose marketers that are good developers of people - Many MLM business networks focus only in sales. Some do not even want its members to develop their own marketing tactics. Good marketing network do not just focus on numbers. They create good leaders out of their downline.
Work only with the top marketers and earners - working with top earning corporation assures you of the success of its programs. It has eliminated much of the trials and errors that often accompany network that are not.
Attend weekly conferences and meetings on marketing strategies - Attending meetings enables you to update your skills and compare notes. This are also venues for good motivation especially to newer entrants. Your upline should be able to give you one on one support. Field coaching and skills reinforcing on the job has always been a very important component for good MLM team.
Training website and free custom website - this should be providing you with newsy messages that could motivate you to action and strengthen the bond of the teams. You should be provided with methods of generating your own leads instead of buying them.
Methods of effective promotion.
Referrals - this is your real business multiplier. Offer freebies or discounts to people who are willing to give you referrals and endorsements.
Word of mouth - Very effective and will cost you nothing. However, a single word from a dissatisfied customer can have the same multiplier effect.
A website - Creating your own website for customer to visit is a very effective way of selling online. If correct web designs are applied to your site it will encourage clicks and leads you have found a winner.
Business card exchange - There is nothing as enduring as business cards to make you remembered. This has been applied for years and years and has not lost its purpose. Technology has changed so much and many practices made obsolete. Not the business card.
Word of Caution.
Multi level marketing has proven successful to only 5% of its members. The majority of the 95% fall out within the week, most in a year's time. Your multi level marketing upline will sell you the idea that you do not have much to do once your downline is established. This is partly true and mostly incorrect.
Any worthwhile endeavor needs hard work. Real downright hard work, especially so in personal selling. This is why your upline will be working at increasing the downline for as far as it can take him. If someone says that it is a laid down work, that someone is pulling your leg. No matter, if you possess the above qualities, MLM marketing should not be a problem for you. It is a real moneymaker even if only a small percentage of those who joined have something to show for it.
Why Do Intelligent People Choose MLM?
by: Patrick Ryan
I have never really figured this question out myself. I have run into a few people who have had limited financial success in MLM, but the entire program just does not ad up. First, most MLM's lead you to believe that a low start up of $50 to $100 investment can make you rich, really rich in little to no time at all! Come on, aren't most of you smart enough to realize that is a pipe dream. How many millionaires claim they started up in a MLM program for $50 and made their fortune? I have never, to date ran across one person who fits this category. If $50 can make you rich, then why haven't you started? Or, if you did start in an MLM program, you probably did not achieve financial freedom, did you?
Second problem that I see is the compensation plan. I do not think that most people understand how the money is made, or more exactly, not made. MLM's have down legs, up legs, branches, you name it. It's like a tree, roots going down, trunk and branches going up. Now let's think about that for a minute. The buds and leaves are the beauty of a tree; this is what I consider the original group who started the company. The branches are the close friend of the people who start the business, so they do OK. Then there is the trunk, this is the main support for the branches and leaves correct? To me, this is the majority of the workers who buy into the MLM. They do most of the work while the branches and leaves strive and get all the glory. Then, the roots are the few people who join so late, they never see the light of day, hidden under the dirt, but still feeding the truck, branches and leaves. For example, I meet a lady who bought a few thousand dollars of products, worked her butt off for six months and got her first check in the amount of $4.00. We spoke because she was very interested in what I do, even though it is a world of difference, she is sticking with the MLM company so she can sell off the garage full of junk she bought. Just like I said, hidden under the dirt and never see the light of day!
Why would someone choose to do all the work and make pennies on the dollar? There is no financial freedom in MLM. MLM is worse than a job. At least with a job you collect a paycheck that is mandated by the Federal Government to be at least a minimum wage per hour, not less than minimum wage for over six months worth of work!
What most people don't know, especially MLM'ers, is there is a totally different compensation plan that can offer financial freedom. I am talking about a home base business sector that really offers financial freedom from working at home, does require some work; some investment (usually less then buying all the MLM junk products) is easily duplicated and best of all, pays only one person. Yes, one product that pays one person! This is known as Direct Sales. No up line, no down line, just money in your pocket the day you make the sale! You don't even wait for the parent company to pay you, the client pays you direct, and then you forward the balance to the company. Best of all, you do not stock or ship the product, the company does all this for you. How refreshing!
Let's look at one program that I know of for a second. One sale generates $1,000 in profit. If one sale is made per week, that is $50K per year. In this program, your first two sales are passed up for qualification purposes. This offers you massive leverage, as each person who start will give you two training sales. Lets suppose that only 40% of the people actually get started, that's 20 people passing up two sales, or a total of 40 sales at $1K each is another $40K profit that you did not have to work for. In addition, there are two more products. The next product offers a $5K profit to the qualified advisor. Company history proves that 1/3 of each base line product buys the second product. So, you have 50 sales plus 40 sales passed up equals 90 total sales. 90 total sales multiplied by 33% equals 30 sales in the second product that is repeat business from your client base with no additional work. That equals 30 people multiplied by $5k equals $150K in repeat business in the same year! Now, the third product this company offers pays an incredible $8K in profit to the qualified advisor. Again, company history shows that half of the people who by the second product will buy the third and final product. So, 15 repeat sales at $8K equal another $120K in revenue! To sum this up, $50K + $40K + $150K + $120K = $360K in one year!
Again, I must ask, why do " Intelligent People" choose MLM as a path to financial freedom? I do not know!
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