Multi Level Marketing Basics – The MLM Business Model
May 18, 2009 by Dunkin
MLM, or Multi Level Marketing, when combined with the Internet, creates a powerful formula for creating a successful home business and achieving financial freedom.
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.
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 simply a business model 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.
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 well known Multi Level Marketing companies include Herbalife, Mary Kay Cosmetics, Shaklee, Amway, Tupperware, Princess house (a subsidiary of Colgate Palmolive), A. L. Williams (Insurance), Melaleuca, U.S. Sprint, MCI, and NSA. Companies such as these 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 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.
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.
As each distributor recruits others to become distributors, they create what is known as a downline and in addition to their own retail sales commissions, they earn a wholesale commission on the amount of products their downline distributors move to consumers. This process goes on for some designated number of levels and is where the term “multi level” originates.
The more people a distributor can recruit for his downline, the larger will be their total commissions. The number of levels that a distributor will earn override commissions on will depend upon the company’s compensation plan but five to seven or more levels is not unusual. These wholesale override commissions can quickly add up for distributors with a large downline.
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.
Building large stable residual income is therefore the result of successfully recruiting, training, and retaining others. The better one is at doing these things, the larger their income will become. While it is not necessarily easy, it can be very 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 so, did you know that sponsoring people into your MLM opportunity is completely irrelevant to making money in network marketing? (And no, I’m not talking about retailing your company’s products). Find out how you can get people to PAY YOU to prospect them… rather than you having to pay for your prospects. Click here to learn more at => The Renegade Network Marketer
THANKS, I DONT REMEMBER, !!!!!!! THIS WILL KEEP ME UP ALL NIGHT!, WAS IT PrinceJames Part II, I dont remember lol
lol
bir gün durakta eşek kadar rozeti böğrüne takmış bir adam yanıma yaklaşıp pazarlamaya kalkmıştı. Gözleriniz bozuk herhalde şişman birine benziyor muyum dedim? Nezaketten bir haber adam biraz toplusunuz deyince de doktor yardımı ile zayıflamaya çalışıyorum ot püsür ile işim olmaz demiştim
Pişman değilim yine olsa yine yaparım.
mango.in
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You have got to be kidding me. I don't know where you work but if work for any corporation in this company it is no different. You just aren't looking from the correct angle. Even a small business works the same way I don't care what industry that's the way it is weather it's customer service, sales, marketing, engineering, developing…anything. Sales drives every business. If your not selling your business dies!!! The results of those sales efforts are what fuel the businesses fire!!! No sales No business. The average sales professional gets anywhere from 2-8% of the deal or 20-40% of the profits the balance goes to a whole bunch of other people in the business from the janitor to the CEO. You need some business 101. My point of view is that if you do not own your own business you are a fool not to have some sort of home based business. If just to off-set your taxes. Homeowners enjoy the tax benefit of writing off the interest on their mortgage but even that's not enough. Now, the question is, what is the right homebased business? Now is the time of the baby boomer!!! The Baby Boomers have single handily changed this country. Many are in retirement now… most have lots of time and money. What do people with time and money do???… They travel!!! The best opportunity for a home based business is an online travel business. Think about it…if you had more time and more money what would you do? Travel, travel and travel. If you would like to find out more about what I'm sharing with you, email me and I will get you and your partners the proper introduction to this explosive industry. 7 trillion dollars were spent on travel last year and the experts believe it will boom to 10 trillion very soon. In the USA alone 1.3 trillion dollars were spent on travel that is 2.5 million dollars every 60 seconds. Also, over 80% of that travel was booked on line. If you know people; friends or family, who travel and book that travel online then you already have a customer base that can at the very least, afford you the same perks and advantages that travel agents receive. Not to mention the tax advantages of being a business owner. As far as building a residual income the possibilities are endless, it is all up to you. You could also help any nonprofit org that you are a supporter of like your church, kid's soccer club or what have you with a fund raising program that is 24-7-365 forever. My home based online travel business has the same deals if not better than Travelocity, Orbitz, Hotels.com or any other heavily advertised travel site in the world. The difference is that when my friends and familly book travel instead of some heavily advertised site, that spends on average 60 -80% of thier profits on more advertising, receiving the profits, my home based business receives the lion's share of those profits. To top it off the company I am partnered with has a bullet proof offer, if you are willing to invest your time, effort and energy along with less than $2300.00 US dollars the organization guarantees you a $6000.00 return in 12 months. There is no other investment vehicle that I am aware of that can offer you that kind of return on investment. They do this because they believe their system works if you work it. What they are saying is that "we have a system that works and we stand behind that system with the guarantee." The initial investment does not have to be $2300.00 you can start your turn key operation with less than $500.00 or with no investment at all and seek success your own way. They'll even give you a website that you can market with. This is not a get rich quick scheme, you will have to commit to your own success and there will be people like me to assist you in capturing your dreams rather then wishing for them to come true. Good luck in your quest for financial freedom.
Kind regards,
Ron P.
Live Healthy & Wealthy EMPOWER YOURSELF!!!
There is no substitute for integrity!
“Or a Mary Kay cosmetics saleswoman named Barbie.”
Islamic Armed Fortress Emerges from Pocono Mountains, Feds Turn Blind Eye
Islamic Armed Fortress Emerges From Pocono Mountains
by Paul L. Williams, Ph.D.
The most dangerous Islamist in the world is neither Afghani nor Arab.
He comes from neither Sudan nor Somalia.
And he resides in neither the mountains of Pakistan nor the deserts of the Palestinian territories.
This individual has toppled the secular government of Turkey and established madrassahs throughout the world.
His schools indoctrinate children in the tenets of radical Islam and prepare adolescents for the Islamization of the world.
More than 90 of these madrassahs have been established as charter schools throughout the United States. They are funded by American taxpayers.
One of these charter schools – - Tarek ibn Ziyad Academy (TiZA) in Minnesota – - is so radically Islamic and subversive in nature that the Minnesota Department of Education issued two citations against it and the American Civil Liberties Union is suing it.
We are worried about one American jihadist as this crap goes on.
this lady's wannabe smartass attitude pisses me off
Thank you It’s not about the enviro. AG mentioned his problem that is how do you profit from CO2? Propup the brainless Straw Man (vote) give him little credence by giving him certificate (diploma),Cowardly Lion is given medal for courage cause he learned he can stand up for his beliefs,Tin Man is given watch he has no heart in time he will come around, Dorothy wants to go home doesn’t have to confront the real world. The hero is TOTO, like the rest of us won’t stand the bs offered via wizard.
Lol@”AccordingToWikipedia”
hhmmm i'll sign up 4 this if u teach me how 2 use it. since u abandonded us on sprint, it would b nice 2 stay in touch