MLM, which is an acronym for Multi Level Marketing, is an amazing success formula for working from home, using the POWER of the Internet and achieving your personal and financial dreams!
My goal in this article is to briefly explain what this business model is and what it is not since it is used by hundreds of companies to move their goods and services from production to the end consumer.
You can only make an informed educated decision as to whether or not this business concept if right for you if you have the required information upon which to make that decision. I hope to provide some of that information in this article.
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.
There are many myths about MLM companies, including that they are illegal pyramid schemes or scams. For true Multi Level Marketing companies, nothing could be further from the truth. Unfortunately, those who believe these myths, simply do not understand how MLM companies work.
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.
Some of the best known MLM companies include Amway, Shaklee, Tupperware, Princess House, a subsidiary of Colgate Palmolive, A.L. Williams, Mary Kay Cosmetics, U.S. Sprint, MCI, Melaleuca, and NSA. These companies have been around for decades.
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 what's the big attraction to MLM companies and programs? Well, it represents a wonderful opportunity for the "little guy" to start his own business on a part time basis and make a whole lot of money provided he or she is willing to put in some work! This is not a get rich quick scheme and work is involved, no matter what some MLM recruiters would like you to believe.
However, the beauty of MLM is that it's not about one person doing it ALL. It's about many people each doing a little and working together as a team! Members of a Network Marketing or Multi Level Marketing company are not actually employees of the company, but rather independent distributors. Each distributor helps "distribute" the companies products to consumers. The distributors are compensated for their efforts by a retail commission based on the amount of product moved from production to the consumer.
The term "multi level" comes from the process where by one distributor recruits other people to become distributors and the new distributors are placed under them in what is known as a downline. Each distributor is paid a retail commission on the products they sell themselves, and a wholesale commission on the products their downline sells (down to some designated level).
The larger downline a distributor can recruit, the larger will be his or her commissions as they will earn a wholesale override commission on all the products moved by their downline organization down to the designated level. These commissions can add up quickly for distributors with large downlines.
Thus if a distributor can teach his or her downline members to be successful, then then they will be rewarded by increased earnings themselves. To paraphrase what Zig Zigler once said, you can get anything you want if you help enough others get what they want. By helping others succeed, a distributor helps themselves.
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.
My goal in this article is to briefly explain what this business model is and what it is not since it is used by hundreds of companies to move their goods and services from production to the end consumer.
You can only make an informed educated decision as to whether or not this business concept if right for you if you have the required information upon which to make that decision. I hope to provide some of that information in this article.
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.
There are many myths about MLM companies, including that they are illegal pyramid schemes or scams. For true Multi Level Marketing companies, nothing could be further from the truth. Unfortunately, those who believe these myths, simply do not understand how MLM companies work.
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.
Some of the best known MLM companies include Amway, Shaklee, Tupperware, Princess House, a subsidiary of Colgate Palmolive, A.L. Williams, Mary Kay Cosmetics, U.S. Sprint, MCI, Melaleuca, and NSA. These companies have been around for decades.
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 what's the big attraction to MLM companies and programs? Well, it represents a wonderful opportunity for the "little guy" to start his own business on a part time basis and make a whole lot of money provided he or she is willing to put in some work! This is not a get rich quick scheme and work is involved, no matter what some MLM recruiters would like you to believe.
However, the beauty of MLM is that it's not about one person doing it ALL. It's about many people each doing a little and working together as a team! Members of a Network Marketing or Multi Level Marketing company are not actually employees of the company, but rather independent distributors. Each distributor helps "distribute" the companies products to consumers. The distributors are compensated for their efforts by a retail commission based on the amount of product moved from production to the consumer.
The term "multi level" comes from the process where by one distributor recruits other people to become distributors and the new distributors are placed under them in what is known as a downline. Each distributor is paid a retail commission on the products they sell themselves, and a wholesale commission on the products their downline sells (down to some designated level).
The larger downline a distributor can recruit, the larger will be his or her commissions as they will earn a wholesale override commission on all the products moved by their downline organization down to the designated level. These commissions can add up quickly for distributors with large downlines.
Thus if a distributor can teach his or her downline members to be successful, then then they will be rewarded by increased earnings themselves. To paraphrase what Zig Zigler once said, you can get anything you want if you help enough others get what they want. By helping others succeed, a distributor helps themselves.
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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