You'll find several misconceptions along with a lot of poor press attached to network marketing and MLM - so what exactly is multilevel marketing really?
If you punch the question into Google you will get a whole bunch of answers. I guarantee the words "pyramid scheme" and "scam" show up someplace.
What is Multi-Level Marketing?
Direct sales is actually a way of retailing through a distribution channel comprising independent distributors and business owners. The model has been around for more than a century and it works really nicely. It offers an excellent opportunity for people to start their own business and frequently with little capital investment.
Compared to a franchise, an MLM business is far more cost effective for many people. A franchise attached to a well-known organization name can cost many hundreds of thousands of dollars. Despite the fact that theoretically it's your business - you've got little freedom to do what you want to promote your business and often a monthly payment to the franchisor is required.
Compare that to spending as little as $50 or up to $2,500 to begin using a solid network marketing organization that delivers exactly the same revenue and you begin to realize the difference quickly. Plus, since your upfront investment is less you can start profiting right away.
With MLM you have total freedom where it comes to promoting and marketing your business. It is possible to work the hours you select, part-time or full-time. You are able to also plod along fairly happily producing an additional couple of hundred dollars a month or build your personal distribution network and really increase your monthly income.
Treat your business like a business and it's going to pay you like a business. Treat it as a hobby (as most people do) and it is going to pay you like a hobby. The decision is yours.
What exactly is Multi-Level Marketing? - It is About Leveraging
When I read or hear that multilevel marketing is a scam, I've to shake my head. For any business to exist in retail, products need to be sold. Multilevel marketing is about selling product.
You are able to do this yourself however it makes more sense to recruit other people to assist you in moving these products. If I can only sell 100 products a month, the commission I make on these 100 products will probably be all I can earn. But if I recruit 100 people who may also sell100 products then I'm looking at 10,000 products getting sold every single month, and every single of those sales makes me a commission. It's really very simple.
Perhaps J. Paul Getty said it best, "I would rather have 1% in the efforts of 100 men than 100% from the my own efforts." So creating a profitable million dollar MLM business just isn't about you doing a lot. It really is about plenty of people each doing a little.
This really is all about leveraging other people's time to make you a lot more money. Your distributors could only sell a couple of products a month - they might be pleased with a small monthly income and have no desire to develop their own downlines. Other people could be just like you and see the prospect of leveraging other people's time and they'll go off and start recruiting their very own team. According to the type of compensation system the company offers, you are going to probably earn commissions from your other team member's sales.
This is referred to as residual income and is the fantastic element regarding the MLM system. Other people are doing the majority of the work and you benefit financially. Of course you will find administrative and coaching elements that you simply must get involved in to make your team even more successful. The harder you work on creating a profitable downline from the start, the less work you'll need to do in subsequent years.
So my answer to the question what exactly is multilevel marketing, it's a wonderful way of earning a substantial income and a wonderful way of life.
If you punch the question into Google you will get a whole bunch of answers. I guarantee the words "pyramid scheme" and "scam" show up someplace.
What is Multi-Level Marketing?
Direct sales is actually a way of retailing through a distribution channel comprising independent distributors and business owners. The model has been around for more than a century and it works really nicely. It offers an excellent opportunity for people to start their own business and frequently with little capital investment.
Compared to a franchise, an MLM business is far more cost effective for many people. A franchise attached to a well-known organization name can cost many hundreds of thousands of dollars. Despite the fact that theoretically it's your business - you've got little freedom to do what you want to promote your business and often a monthly payment to the franchisor is required.
Compare that to spending as little as $50 or up to $2,500 to begin using a solid network marketing organization that delivers exactly the same revenue and you begin to realize the difference quickly. Plus, since your upfront investment is less you can start profiting right away.
With MLM you have total freedom where it comes to promoting and marketing your business. It is possible to work the hours you select, part-time or full-time. You are able to also plod along fairly happily producing an additional couple of hundred dollars a month or build your personal distribution network and really increase your monthly income.
Treat your business like a business and it's going to pay you like a business. Treat it as a hobby (as most people do) and it is going to pay you like a hobby. The decision is yours.
What exactly is Multi-Level Marketing? - It is About Leveraging
When I read or hear that multilevel marketing is a scam, I've to shake my head. For any business to exist in retail, products need to be sold. Multilevel marketing is about selling product.
You are able to do this yourself however it makes more sense to recruit other people to assist you in moving these products. If I can only sell 100 products a month, the commission I make on these 100 products will probably be all I can earn. But if I recruit 100 people who may also sell100 products then I'm looking at 10,000 products getting sold every single month, and every single of those sales makes me a commission. It's really very simple.
Perhaps J. Paul Getty said it best, "I would rather have 1% in the efforts of 100 men than 100% from the my own efforts." So creating a profitable million dollar MLM business just isn't about you doing a lot. It really is about plenty of people each doing a little.
This really is all about leveraging other people's time to make you a lot more money. Your distributors could only sell a couple of products a month - they might be pleased with a small monthly income and have no desire to develop their own downlines. Other people could be just like you and see the prospect of leveraging other people's time and they'll go off and start recruiting their very own team. According to the type of compensation system the company offers, you are going to probably earn commissions from your other team member's sales.
This is referred to as residual income and is the fantastic element regarding the MLM system. Other people are doing the majority of the work and you benefit financially. Of course you will find administrative and coaching elements that you simply must get involved in to make your team even more successful. The harder you work on creating a profitable downline from the start, the less work you'll need to do in subsequent years.
So my answer to the question what exactly is multilevel marketing, it's a wonderful way of earning a substantial income and a wonderful way of life.
About the Author:
Joe Burke writes using the names jbmuchin and augustus1. His many topics include MLM, Internet Marketing and Network Marketing. His writings can be found on many article directories.mlm scams, andnetwork marketing companies
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