MLM, or Multi Level Marketing, when combined with the Internet, creates a powerful formula for creating a successful home business and achieving financial freedom.
There are literally hundreds of companies which use this business model to move their products from production to the end user and my goal in this article is to provide you with the simple facts 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.
Some people believe that Multi Level Marketing companies are nothing more than scams or illegal pyramid schemes. However, for true MLM companies, nothing could be further from the truth. These people simply do not understand how Multi Level Marketing companies work.
First you need to know that Multi Level Marketing companies are 100% legal and many large multi-million dollar companies employ this business model to move their products from production to the consumer. The pyramid shape associated with MLM companies is the same shape as almost all non MLM companies. There are always more workers in the lower ranks than there are senior managers, Vice Presidents, and CEOs. If companies were not of this shape, they would collapse.
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 actually 100's to 1,000's more Multi Level Marketing companies. Like other companies, some are good and some are not so good. But one thing is for sure. MLM is here to stay, and it is an explosive growth field! Fortune 500 companies are even increasingly including the Network Marketing business model for some portion of their marketing portfolio!
No matter what some MLM recruiters would like you to believe, Multi Level Marketing is not a get rich quick scheme and work is certainly involved if you want to build a long-term stable business. So, why are MLM companies and programs so popular? It is because the Multi Level Marketing business model presents an excellent opportunity for the "little guy" to start, on a part-time basis, a business that has a large residual income potential.
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 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.
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.
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! To discover how to proceed to build a MLM business online and 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. - 15433
There are literally hundreds of companies which use this business model to move their products from production to the end user and my goal in this article is to provide you with the simple facts 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.
Some people believe that Multi Level Marketing companies are nothing more than scams or illegal pyramid schemes. However, for true MLM companies, nothing could be further from the truth. These people simply do not understand how Multi Level Marketing companies work.
First you need to know that Multi Level Marketing companies are 100% legal and many large multi-million dollar companies employ this business model to move their products from production to the consumer. The pyramid shape associated with MLM companies is the same shape as almost all non MLM companies. There are always more workers in the lower ranks than there are senior managers, Vice Presidents, and CEOs. If companies were not of this shape, they would collapse.
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 actually 100's to 1,000's more Multi Level Marketing companies. Like other companies, some are good and some are not so good. But one thing is for sure. MLM is here to stay, and it is an explosive growth field! Fortune 500 companies are even increasingly including the Network Marketing business model for some portion of their marketing portfolio!
No matter what some MLM recruiters would like you to believe, Multi Level Marketing is not a get rich quick scheme and work is certainly involved if you want to build a long-term stable business. So, why are MLM companies and programs so popular? It is because the Multi Level Marketing business model presents an excellent opportunity for the "little guy" to start, on a part-time basis, a business that has a large residual income potential.
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 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.
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.
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! To discover how to proceed to build a MLM business online and 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. - 15433
About the Author:
George Dodge as an Internet MLM Coach, recommends The Renegade Marketer to build a strong MLM business online. To better understand the MLM industry, also download the FREE ebook, The 7 Great Lies of Network Marketing
