What's Multi-Level Marketing? Boom or Bust?

by ukatop
0 replies
  • ARTICLES
  • |
What's Multi-Level Marketing? Boom or Bust?

What is multi-level marketing? Ask a thousand people and you will be bound to get a thousand different answers ranging from "mlm is a scam" to "mlm has been an excellent blessing to me and my family" so let's take a closer look, shall we?

Venture on the web and search for "what is multi-level marketing" and you will be presented with tens of thousands of offers to join this company or that firm. Right here let's take a more unbiased strategy without hidden agenda.

What exactly is Multi-Level Marketing? - It really is Direct Sales

Direct sales is actually a way of retailing via a distribution channel comprising independent distributors and business owners. The model has been around for more than a century and it works very well. It offers an excellent opportunity for people to start their own business and often with very little capital investment.

Compared to a franchise, an MLM business is far more reasonably priced for many people. A franchise attached to a well-known business name can cost a lot of hundreds of thousands of dollars. Although theoretically it is your business - you have little freedom in terms of what you can do to promote your business and often includes a large monthly payment to the franchisor.

Compare that to a typical distributor enrollment fee which is often as little as $50-$500, with many of the greater MLM businesses offering a buyback if the stock isn't sold. So there's very little economic risk.

With MLM you've total freedom where it comes to promoting and marketing your business. You'll be able to work what hours you select, part-time or full-time. It is possible to also plod along quite happily making an extra hundred dollars a month or build your personal huge distribution network which can bring in a handsome revenue.

The harder you work at the business the more income you make.

What is Multi-Level Marketing? - It is a Leveraged Revenue Model

Many people falsely assume network marketing is somehow illegal or that it's a type of pyramid scheme. But nothing could be further from the truth. Every company must sell a product or service to make cash and earn a profit as well as your MLM business won't be the exception. In order to create cash, your business will must move product. Plain and straightforward.

So how do you move product? There are two ways. You can personally seek out customers, offer you your products for sale and pocket a commission for each sale. This can be what's called direct promoting. Which can be fine, you are able to earn a few hundred to a few thousand per month as a salesperson. However, you also have the opportunity to recruit people to join your network of distributors and get paid a commission override on the products they sell as well and this really is all the massive income, highly leveraged income comes into play.

Perhaps J. Paul Getty mentioned it best, "I would rather have 1% of the efforts of 100 men than 100% of my personal efforts." So creating a profitable million dollar MLM business isn't about you carrying out a whole lot. It is about a lot of people each doing a little.

Think about it this way. Let's say you can put in a full-time 40 hour week toward building your business. Let's also say you are able to earn as much as $100 per hour for your time and work which puts the maximum you can earn in the range of $4,000 per week. Now let's assume you create a team of 500 independent networkers who also earn $100 per hour and you get a tiny $20 cut for every hour they work ... and they can each work only two hours per week. You're still putting in only 40 hours per week but are you currently pocket over $14,000 per week.

This is known within the business as accurate economic freedom based on the concept of leveraged residual income. Not just do you earn commissions on work you personally do, you will be also rewarded for the time, work and sales your team produces also. But like any business, you will find no guarantees. What you put in is exactly what you will get out. So the harder you work to construct a team in the beginning, the more you may earn the rest of one's life.

So the answer to, "What is multi-level marketing?" is simple. What do you want it to be for you? The model offers an unlimited income opportunity for those who get in and get business. Will that be you? Only you can answer that question.
#boom #bust #marketing #mlm multilevel marketing #multilevel

Trending Topics