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Inside Multi-Level Marketing:
MLM Defined
Are you looking for a new start? Are you looking
for a new beginning? Do you want the chance to
become a part of something bigger than yourself
and all the while making big profits? Do you
want the opportunity to run your own home based
business? Then the answer to these questions is
Multi-Level Marketing (MLM). Surely, you have
heard the term MLM, but not always with the
greatest of words behind it. Many people have a
misconception about multi-level marketing, as a
negative entity that only exists to take your
money. While, I cannot deny that some
multi-level marketing outfits are like that, the
truth is a great majority are true,
honest-to-goodness, businesses that will help
you build your business from the ground up, with
little to no money down.
So, before we go any further, why not look into
exactly what multi-level marketing is, how it
works, and why it would be beneficial to you as
a home based business. Multi-level marketing is
an arrangement, sometimes referred to as network
marketing, which has one parent company, if you
will. The sales team, is made up of independent
contractors (which are the home based business
operators) and each contractor is an associate
of the parent company. Income is generated when
the independent contractor sells the parent
company's services or products.
Now that is just the first level of this
marketing outfit. You see, it is in your best
interest to recruit new independent contractors
and here is why. When you bring in new recruits,
they are now in, what is called, your downline.
The downline consists of independent contractors
that you initially recruit, then the new
recruits your recruits sign up, and so forth, it
keeps going down the line, hence "downline". Now
what is great about these recruits and getting
them is that not only do you receive a
percentage of their sales, but a percentage of
their recruit's sales, and so on. This is where
the real profits begin to show.
Now, with that said, you should be aware of some
illegitimate multi-level marketing companies.
The above, is what you should be looking for in
any MLM company, for that is the way the entire
business was intended to run. As with any idea,
some people got it into their heads that things
could be easier and you would not have to make
any sales, you would only have to get recruits.
You should avoid these ones, while it may seem
easier it is farce, especially since people are
much more aware of these types of schemes and
stay away from them. When you are looking for an
honest multi-level marketing campaign, make sure
that you are compensated for sales, not for
recruits alone. This is called the pyramid
scheme.
The pyramid scheme is disguised to resemble the
multi-level marketing campaign, but is far
different and should be avoided if at all
possible. Not that the pyramid scheme is
anything new, remember the chain letters way
back when? Think about those chain letters, you
send every person on the list $1 or $5 and your
name is moved to the top, with the promise,
people will send to you as well. This was a
pyramid scheme also, no services or products
were involved. However, once people caught on,
they began offering advice as the service or
something similar.
Legitimate multi-level marketing companies have
specific steps in place and will have everything
out in the open. Look for a company that
provides you with specific details regarding
their compensation plan, how you can benefit at
various levels, and real products or services
for you to sell. Nothing in life comes free, so
you will have to really work at it to make good
profit. However, a reputable MLM company will
provide you with everything you need to begin.
Many will have marketing tools, advertising
campaigns, training, and support for you as you
begin your home based business.
Do not be afraid to sign up with a multi-level
marketing campaign; simply be careful about the
businesses you choose. Take great care in
investigating the company, talking to other
independent contractors, and reading everything
on the website prior to making that first step.
Source: Free Articles
About the Author
Scott Fromherz owns and operates multiple
websites. Check out http://www.downlineautopilot.ws
for more about Multi-Level Marketing.
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