≡ Menu

MLM Basics – The Multi Level Marketing Business Model

MLM, or Multi Level Marketing, when joined with the Internet, creates a powerful formula for building a successful home business and achieving financial freedom.

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 your decision.+ I hope to provide some of that information in this article.

Multi Level Marketing is simply a business system for moving products and services from production to the consumer using independent distributors with a multi level commission payout plan.+ Since distributors can recruit other distributors and establish teams that work together, this business model is often also called Network Marketing.

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.+ However, nothing could be further from the truth for legitimate Multi Level Marketing companies.

First, understand that MLM is not an illegal pyramid scheme.+ It is+ 100% legal and many multi-million dollar companies market their product strictly through MLM promotion.

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.

MLM is an explosive growth field and there are hundreds more MLM companies that, just like other companies, include some that are good and some that are not so good.+ Today, more and more Fortune 500 companies are even embracing Network Marketing for a 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.

John Paul Getty is often quoted as having said that he would always prefer earning 1% of a hundred peoples efforts than 100% of his own efforts.+ And that is precisely what Multi Level Marketing is all about.+ The Multi Level Marketing sales force members are not actually employees of the company, but instead they are independent distributors who are compensated for their efforts by commission based on the amount of product moved by not only themselves, but also by those whom they recruit as distributors.

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 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, there is a strong incentive for a distributor to not only recruit more distributors below them, but to also train them and retain them as part of his or her downline.+ So a successful distributor must be able to duplicate their success in their downline members.

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.

In fact, millions of people are earning a solid income from the comfort of their own home while being their own boss.+ With MLM, you don’t need an expensive office anymore.+ 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!

It's only fair to share...Tweet about this on TwitterPin on Pinterest0Share on LinkedIn0Share on Google+0Share on Facebook0

Comments on this entry are closed.