MLM, also known as Multi Level Marketing, can be a wonderful method for achieving your personal and financial dreams when combined with the power of the Internet.
This business model is used by hundreds of companies to move their goods and services to the end consumer. In this article, my goal is to provide you with information on what this industry is and what it is not.
With the information I will provide here, you will be able to make an informed, educated decision as to whether or not this business model is right for you.
Multi Level Marketing is nothing more that a business model that uses independent distributors with a multi level commission payout plan to move products from production to the consumer.
Unfortunately, many people do not understand how multi level marketing programs work and believe that they are some sort of scam or illegal pyramid scheme. Nothing could be further from the truth for legitimate MLM companies.
The first thing that you need to know is that MLM is not illegal and it is not a pyramid scheme. While the organizational structure resembles a pyramid in shape, this is true of almost all businesses. There are far more workers in the lower ranks of any business then at the top, if not, the business would collapse. Not everyone in the company can be CEO or Vice President. If fact, Multi Level Marketing companies are one hundred percent legal and many multi-million dollar companies use this business model to market their products.
Many Multi Level Marketing companies have been around for decades. Some of the better known MLM companies are Shaklee, Tupperware, Mary Kay Cosmetics, Amway, A.L. Williams (Insurance), Princess House (a subsidiary of Colgate Palmolive), Melaleuca, MCI, U.S. Sprint, and NSA.
There are hundreds more MLM companies and just like other companies, some are good and some are not so good. But MLM is certainly here to stay and it is an explosive growth field! In fact, increasingly you will find more and more Fortune 500 companies employing the Network Marketing business model for some portion of their marketing portfolio!
So why are MLM companies and programs becoming so popular? Well, the business model offers a wonderful opportunity for the "little guy" to start his own business on a part time basis with very little investment money upfront, but with a large income potential if she or he is willing to put in some work! Contrary to what some people would want you to believe, MLM is certainly not a get rich quick scheme and requires effort to grow your business.
The magic of MLM is that independent distributors earn commissions not only for their own efforts, but also on the efforts of other distributors that they recruit into the business. Earning 1% of a hundred peoples efforts is always better than earning 100% on your own efforts, as John Paul Getty noted.
What makes the business "multi level" is that each independent distributor can recruit other independent distributors to work under them and earn a wholesale commission on the amount products their recruited distributors move to consumers. And this process can go on and on for some designated number of levels. This chain of distributors is called a downline.
The more recruits a distributor can get under them, the larger their downline and therefore the larger their total commissions. How many levels a distributor can earn commissions from in their depends upon the particular company's compensation plan. Five to seven or more levels is not unusual.
A strong incentive is thus created not only for a distributor to recruit more distributors for their downline, but also to train them to move products as well. Thus a successful distributor will want to duplicate their success by teaching their downline members how to be successful. By making their downline members successful, they make themselves more successful.
Those who can successfully recruit, train, and retain can create small fortunes and develop a large stable residual income that will support them for years to come. Although not easy, it can be quite rewarding.
Want to be your own boss? Millions of people are earning a solid income using this business model working from home. A telephone, basic computer, fax machine, a HUGE ambition, and the knowledge of how to proceed to grow your business are all it really takes! Are you ready to explore the opportunities that Multi Level Marketing offers? If you would like to know how to build a MLM business online and discover some of the popular Multi Level Marketing myths that cause people to fail in their Network Marketing businesses, click the links in the resource box below.
This business model is used by hundreds of companies to move their goods and services to the end consumer. In this article, my goal is to provide you with information on what this industry is and what it is not.
With the information I will provide here, you will be able to make an informed, educated decision as to whether or not this business model is right for you.
Multi Level Marketing is nothing more that a business model that uses independent distributors with a multi level commission payout plan to move products from production to the consumer.
Unfortunately, many people do not understand how multi level marketing programs work and believe that they are some sort of scam or illegal pyramid scheme. Nothing could be further from the truth for legitimate MLM companies.
The first thing that you need to know is that MLM is not illegal and it is not a pyramid scheme. While the organizational structure resembles a pyramid in shape, this is true of almost all businesses. There are far more workers in the lower ranks of any business then at the top, if not, the business would collapse. Not everyone in the company can be CEO or Vice President. If fact, Multi Level Marketing companies are one hundred percent legal and many multi-million dollar companies use this business model to market their products.
Many Multi Level Marketing companies have been around for decades. Some of the better known MLM companies are Shaklee, Tupperware, Mary Kay Cosmetics, Amway, A.L. Williams (Insurance), Princess House (a subsidiary of Colgate Palmolive), Melaleuca, MCI, U.S. Sprint, and NSA.
There are hundreds more MLM companies and just like other companies, some are good and some are not so good. But MLM is certainly here to stay and it is an explosive growth field! In fact, increasingly you will find more and more Fortune 500 companies employing the Network Marketing business model for some portion of their marketing portfolio!
So why are MLM companies and programs becoming so popular? Well, the business model offers a wonderful opportunity for the "little guy" to start his own business on a part time basis with very little investment money upfront, but with a large income potential if she or he is willing to put in some work! Contrary to what some people would want you to believe, MLM is certainly not a get rich quick scheme and requires effort to grow your business.
The magic of MLM is that independent distributors earn commissions not only for their own efforts, but also on the efforts of other distributors that they recruit into the business. Earning 1% of a hundred peoples efforts is always better than earning 100% on your own efforts, as John Paul Getty noted.
What makes the business "multi level" is that each independent distributor can recruit other independent distributors to work under them and earn a wholesale commission on the amount products their recruited distributors move to consumers. And this process can go on and on for some designated number of levels. This chain of distributors is called a downline.
The more recruits a distributor can get under them, the larger their downline and therefore the larger their total commissions. How many levels a distributor can earn commissions from in their depends upon the particular company's compensation plan. Five to seven or more levels is not unusual.
A strong incentive is thus created not only for a distributor to recruit more distributors for their downline, but also to train them to move products as well. Thus a successful distributor will want to duplicate their success by teaching their downline members how to be successful. By making their downline members successful, they make themselves more successful.
Those who can successfully recruit, train, and retain can create small fortunes and develop a large stable residual income that will support them for years to come. Although not easy, it can be quite rewarding.
Want to be your own boss? Millions of people are earning a solid income using this business model working from home. A telephone, basic computer, fax machine, a HUGE ambition, and the knowledge of how to proceed to grow your business are all it really takes! Are you ready to explore the opportunities that Multi Level Marketing offers? If you would like to know how to build a MLM business online and discover some of the popular Multi Level Marketing myths that cause people to fail in their Network Marketing businesses, click the links in the resource box below.
About the Author:
George Dodge shows Network Marketers how to create a residual income using Internet Marketing Methods.Click here to download the FREE ebook, The 7 Great Lies of Network Marketing
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