The Misconception of Multi-Level Marketing
Have you ever wondered why people are so turned off at the mention of Multi-Level Marketing? Is it legal? Is it a pyramid? Who benefits the most? Where does the money flow? In this article we will examine basic differences between Multi-Level Marketing and a Corporate Structure.
Let's take the corporate structure first. Almost all of us work in this type of hierarchy everyday. A CEO heads the corporation or company. Below him/her are upper management people i.e. Vice President, Controller, Senior Sales Exec...etc. Below them are middle management people i.e. Department Heads, Retail Directors, Consultants and various Supervisors.
Finally we reach the Sales Representatives, Customer Service Representatives, Stockers, Cashiers, Cleaners, Drivers, etc.
So who makes the most money in this type of structure?
If you were to draw a flowchart this, it would look like a “Pyramid” The CEO makes the most money as he/she sits at the top. Below them are a few upper management people, then more middle management, then most of the workers. It is the person at the “top” of this “pyramid” that makes the most money, because in this type of structure, you are paid based on “where you are” in the structure. So, how do you make more money here? The only ways you can truly increase your earnings are if someone in the structure is promoted, gets fired, dies, or quits. As a result, everyone in the structure can move up.
So.... Let's take a look at a Network Marketing Structure and then compare. On the surface, both structures are mirror images of each other. BOTH look like a “Pyramid” structure. Flowchart it out again. An affiliate will sponsor someone, they sponsor more, they sponsor more...etc. But...who makes the money here? The worker at the top? Possibly, but most likely not. Here's why:
Even though this structure looks identical to a corporate structure pyramid, in the MLM structure you get paid STRICTLY on what you produce and the work you do, not on where you are within the structure. Wouldn't it seem fair that if you do more work, you should get paid more money? This structure is simply a structure of business owners. Pay is based ONLY on what you do, not your position within the network. This is what differs Network Marketing from a typical “Corporate Structure Job”.
In the MLM structure YOU are in control of your income. In the corporate world, someone else will always be in control of your income. Always!
The Truth About Building a Network Marketing Business Online
So, you are ready to start your network marketing business, and you want to build your business online. Great! The Internet offers almost boundless opportunity for finding and contacting excellent prospects for your new business. But, beware - beneath all that potential there are a few things you need to consider, to ensure that your new venture is successful.
Network Marketing - a People Business
No matter what anyone tells you, a successful and long-lasting network marketing income is not going to be built around anonymous online marketing. Putting up a website and then expecting people to just sign up and make money for you isn't realistic. Internet prospecting is just a tool that enables you to identify people who have an interest in a home business. It will still be up to you to personally contact these people and help them. You have to be willing to pick up the phone and talk to people. You may think, "but I hate selling". I hate selling too. I don't consider calling someone who has contacted ME to be selling - I think of it as providing information. I never "close" anyone on my business - my online tools provide the information, I fill in the gaps by talking to interested prospects, then let them make the decision. If you have to "sell" the business to someone, they won't likely pursue it for long. You don't want that.
The Reality of Online Advertising
I see it all the time - "blast your ad to 500,000 classified ad sites". So goes a typical pitch that many marketers use to sell their submission software and service. The reality is, blasting ads to FFA link sites and free classified ad sites rarely, if ever produces a real prospect for you. How many people really look at these sites, anyway? How many times have you personally looked for opportunities among hundreds of links plastered on a web page somewhere? Effective online promotion of your network marketing business will require spending some money to put ads where people will actually view them. One strategy I use is to purchase keywords in pay-per-click search engines - keywords directly related to my home business. I get many of my prospects this way. I also have small, inexpensive ads on several "work from home" business sites that receive a lot of traffic. With online advertising, you get what you pay for.
Online Sales Tools
Whatever network marketing company you join, if you are going to promote and build it online, you will need a web site. Some companies provide free sites to help you. Some even provide turn-key prospecting systems that collect information about your prospect and guide them through presentations that help them to make a positive decision to join your business. The company you choose should provide these tools for you, and they will if they are serious about supporting online marketing efforts.
Consistent Follow-Through and Commitment
Whatever network marketing company you join, remember that your success will be measured in large part by how much time you spend following up with prospects, and how well you do it. I've seen many people come into my business, set up their free web site, and then sit back and wait for something to happen. It won't - you have to take whatever tools you've been provided, and make something happen.
Why Do You Want to Build Your Business Online?
This is a big one. Think about why you want to build your business online. There are many great reasons, a few of which I outlined above. One BAD reason to desire an online network marketing business: you don't like to talk to people, or you want to do everything by email and never have to talk to anybody "live". You must enjoy working with people to be successful in this business. Your online tools can be of GREAT help to you in building your business, but that personal touch is still critical to your success.
The Best Thing
To me, the best thing about online marketing is that you get to talk to prospects who have contacted YOU and who are ready to talk about starting their business. This sure beats the old way, where you were prompted to contact every friend and relative and told to drag them into home meetings and such. Few of us have the time or desire to build a business in this way - which is what makes online networking so special! But always bear in mind - network marketing is still a people business, and you need to always approach it as such.
In his book, "Super Prospecting: Special Offers and Quick-start Systems", Tom "Big Al" Schreiter tells the story of an old lumberjack who observed a young lumberjack laboring to chop down a tree. After watching the youngster work himself to nearly exhaustion without accomplishing much, the old man said, "Looks to me like it'd be easier if you sharpened the axe."
To which the younger man replied before returning to his attack on the tree, "I don't have time to sharpen the axe, I have to get this tree cut down."
Now, it seems obvious to most of us that a sharp axe would probably make the work go faster and easier. The young lumberjack would be able to cut down more trees with less work just by taking a few minutes to sharpen his axe. Prepare his tools. Learn his trade, you might say!
You know, it's funny. Most of us have no problem seeing the point of that story, but everyday, people sign up for network marketing programs and then start hacking away with very blunt axes! Most of these folks have no idea of what network marketing is, how to go about it, or how to measure success.
I recently received an email from a gentleman interested in getting into network marketing. He asked some very insightful questions, but one demonstrated his misunderstanding of most genuine network marketing programs.
He asked, if I remember correctly, how long it would take to make a significant income from a certain network marketing program, and seemed to indicate that he would expect a sucessful program to generate an income of about $48,000 or more within a relatively short period of time. Otherwise, he would consider it a scam.
Well, honestly, I guess my two friends who I often hold up as examples somehow missed that point. It took each of them about three years in perfectly legitimate programs to begin making money anything like what my correspondent expected. At that point, by the way, their incomes began to grow exponentially until they were taking home over $100,000.00 a month. We'll say nothing about countless Avon ladies who are network marketers who consider themselves successfully affiliated with an honest company but whose income is less than $20,000.00 a year.
Or, I guess I should be concerned about my affiliation with a nationally recognized company (you've probably seen their commercials on prime time). The first year, I only made a few hundred dollars. The second year a few thousand. I'm in my fifth year with them, and I am now making the magical number...a six figure income from that program alone. I presently have over 200 fully satisfied customers and tons of repeat business. What a scam!
I don't mean to insult the gentleman who sent me the question. His questions were valid, and I understand his concerns and applaud his attempt to gain some insight into network marketing. However, it appears his understanding of network marketing is limited to a desire to find a program that will in some way do the work for him...make income for him. Unfortunately, network marketing is a business...albeit a special kind of business...and it works best when worked certain ways. Many successful network marketers have written many excellent books and articles on the subject, and there are marketing and internet marketing training programs available for those who wish to learn. Some colleges are even offering courses and classes on network marketing and internet marketing.
People going into network marketing should be doing more than simply listening to the person who recruits them and scanning the company literature. If they were hired to do any job they had never done before, no matter how menial, they would recognize the need to familiarize themselves with the business and how it is conducted. Especially if they intended to rise in the business and succeed.
A few books the beginning network marketer might want to read are:
Super Prospecting: Special Offers & Quick-Start Systems by Tom "Big Al" Schreiter
Your First Year In Network Marketing by Mark and Rene Yarnell
The Wave 4 Way To Building Your Downline by Richard Poe
The Greatest Networker In The World by John Milton Fogg
Off-The-Wall Marketing Ideas by Nancy Michaels and Debbi J. Karpowicz
These tend to be a little old but can probably be found thru Amazon, and they are excellent education for the beginning network marketer.
The person who fails to educate himself or herself about network marketing in general and their chosen business in particular, has chosen to fail. Like the young lumberjack, they will flail at the tree until their strength or motivation fails them, and then they will wander into the forest...perhaps complaining loudly about trees, axes, lumberjacks...anything but themselves. They will not know why they failed, how they could have succeeded, or how to measure success.
Multi-level marketing is an enterprise system which puts emphasis on recruiting distributors. It is commonly used by the industry, and this term implies that success depends on building a distributor interconnection and that payouts occur at two or more levels. In some cases, this is also used to indicate that there are links of product suppliers enabling distributors to offer a broader selection of products.
In a typical multi-level marketing or network marketing arrangement, individuals associate with a parent company as an independent contractor and are compensated based on their sales of products or service, as well as the sales achieved by those they bring into the business.
In a legitimate MLM company, commissions are earned only on sales of the company's products. No money may be earned from recruiting alone ("sign-up fees"). Some less legitimate companies produce revenues primarily by attracting new participants or selling them marketing services, as opposed to selling actual products. One must analyze the compensation plan to determine whether participants are paid from actual sales to customers and not from new-recruit bonuses or business support sales.
Multi-level marketing has a recognized image problem due to the fact that it is often difficult to distinguish legitimate MLMs from illegal scams such as pyramid or Ponzi schemes. MLM businesses do operate legitimately in most countries, and new businesses may use terms like "affiliate marketing" or "home-based business franchising". However, many pyramid and Ponzi schemes try to present themselves as legitimate MLM businesses.
A pyramid scheme is a non-sustainable business model that involves the exchange of money primarily for enrolling other people into the scheme, usually without any product or service being delivered. Ponzi schemes, however, is a fraudulent investment operation that involves paying abnormally high returns ("profits") to investors out of the money paid in by subsequent investors, rather than from net revenues generated by any real business.
Most of these schemes take advantage of confusion between genuine businesses and complicated but convincing moneymaking scams. The essential idea behind each scam is that the individual makes only one payment, but are promised to somehow receive exponential benefits from other people as a reward.
Multi-Level Market scams generally have extremely elaborate marketing materials, such as professionally directed and produced audio-video tapes to show potential commissioned sellers, conventions with "guest speakers" who offer testimonials about how much they have made on the scam and how wonderful the product is, and awards and prized for the commissioned seller with the most sales.
Clearly, the fundamental flaw is that there is no end benefit; the money simply travels up the chain, and only the originator (or at best a very few) wins in swindling his followers. Of course, the people in the worst situation are the ones at the bottom of the pyramid: those who subscribed to the plan, but were not able to recruit any followers themselves. To embellish the act, most such scams will have fake referrals, testimonials, and information.
The scams that have mushroomed have been very damaging to legal MLM companies. To avoid illegitimate multi-level marketing, we should be wary if the start-up cost for the investment is too expensive. Know the consumer market for the products and its officers. If the company seems to be making money by recruiting alone, there certainly is a bluff. And the surest way to distinguish false MLM companies is to contact your local business bureau.
Multilevel marketing is picking up a lot of steam. This is due to the large amount of people online that are hyping multilevel marketing and all of the profits that go along with it. the number of interested parties began to increase. And with this has come the notion that multilevel marketing is not going anywhere.
If you are not familiar with the business, you should bone up on the details as soon as possible. Generally speaking, it is a way to make money when you sign people up for a certain service or product. And to take this a bit further, with this business you can also make money when the people that you sign up recruit members of their own. So in general terms, you will make money with a pyramid type effect.
For people that are interested in multilevel marketing, the best place to start searching is online. There are hundreds of companies that you can sign up with in order to make money. Just make sure that what you are doing is legal. There are a lot of busineses out there that are not legal in the majority of the states. You can avoid this without any complications by getting hooked up with a campaign that is run by a reputable company.
If you are not sure if this opportunity is right for you, look into the benefits that it offers. There are many online forums devoted to multilevel marketing. By becoming a member you can ask questions to more experienced marketers. They will be able to give you advice on where to start and how to progress.
Simply put, you will want to read up as much as you can on multilevel marketing before you get started. Just like anything else, the more that you know about something the better chance you have of being a success. Since it is relatively new, it is very important that you are familiar with the industry as a whole.
Multilevel marketing is definitely here to stay. There are enough people out there making money with this opportunity that the popularity will always be high. For people that are searching for a way to make cash online, multilevel marketing is always a good option.
Overall, check it out if you are interested in a new way to make money online.
Making Money with MLM
In every MLM program, there are inevitably those who profit more than others. These elite few are also those most often identified to such programs. They drive fancy cars, live in large mansions, and cash in massive commission checks every month.
In contrast, there are also those who never seem to get anywhere with their programs. They work hard enough, but their work just does not seem to translate to real results. This is because they are missing a key ingredient: technology.
In recent years, multi level marketing has gone high tech. Some of the most successful companies in recent memory, were those that introduced cell phones or internet based products in to the MLM mix. However, the contribution of the technology seems to have stopped there for some members, to their detriment. They simply have not been able to tap into what is available.
If you wish to make it big in the marketing world, you must learn to do a few things very well. One, you must learn how to sell the largest number of your products to the largest number of possible people. Two, you must learn to attract and utilize skilled people that can help you grow your marketing venture. Both skills are certainly attainable using conventional methods but technology would make them far easier to master.
The big secret to making money from multi level marketing is to learn how to use technology to your advantage. At the top of the technology list is the internet, which is the centerpiece of the new world economy. As we go deeper and deeper into the new millennium, expect the internet to grow at exponential rates and for internet business to become more and more successful. As the global market made possible by the internet consolidates, more and more financial opportunities will come up.
The growth of the internet is there for you to take advantage of, and if you are really serious about making it big in the MLM game, you will not ignore it. Embrace technology as it comes and learn to utilize it to suit your ends. There are various ways you can do this. You can start selling web based products, place ads for partners, write a newsletter, create a content website, all things that you can do as part of a multi level marketing program. Additionally, recruiting and related activities can be facilitated by the instant communication made possible by the worldwide web.
By taking advantage of todays high powered technology, you will put yourself on the fast track to MLM success
If you are looking to make money online without doing anything you are not alone as the common misconception is that tarting an online business will have you rolling cash in a matter of days. That just is not how it works. The people offering you ideas for a home business at one time had to groom an idea into a working model and then bring in other people to help their idea blossom.
Affiliate networking can be good business from both sides of the financial network both the affiliates advertising a business and the business recruit affiliates to push their products for them. Unlike the old days when a person pays for advertising and hoped for results, in todays affiliate marketing they pay for the results of the advertising. The affiliates can even make money recruiting others to advertise their website, which brings then more visitors resulting in more sales for those whose advertising they carry.
That may sound confusing but breaking it down you can see how it makes sense, as well as dollars. A person can start a website to offer their own products or services and to bring in a little more income and help pay the maintenance on their site, they become affiliates of other businesses. By placing the ads on their sites, they are promised a share of the profits on any sales resulting from that placement. They now recruit another person with a website to promote their website, offering payment based on the sales from their site and if a customer buys something, they both make a percentage of the profit.
This creates an affiliate multilevel marketing network in which everyone makes a small amount of money from the sale of one item. It becomes a profitable business when more visitors come to your or your affiliates website and make purchases. Advertising costs are contingent on sales being made so it is to everyones financial benefit to promote their site to improve sales. For example if you make $5 a month by successfully promoting your site and allowing visitors to pass through and make purchases from someone else, you may not believe it to be worth the effort.
Consider you have 100 businesses you are affiliated with and make $5 a month from each one. Now consider having 100 affiliates bringing another 1,000 visitors to your site each month and those people also make purchases. You could be realizing an income of over $5,000 a month for maintaining and updating the links coming from your affiliates and those links to the sites of which you are affiliated. A few hours a week can lead to a good income. You may consider starting a second site to grow into another income stream that could double your effort as well as your income.
Have you ever wondered why people are so turned off at the mention of Multi-Level Marketing? Is it legal? Is it a pyramid? Who benefits the most? Where does the money flow? In this article we will examine basic differences between Multi-Level Marketing and a Corporate Structure.
Let's take the corporate structure first. Almost all of us work in this type of hierarchy everyday. A CEO heads the corporation or company. Below him/her are upper management people i.e. Vice President, Controller, Senior Sales Exec...etc. Below them are middle management people i.e. Department Heads, Retail Directors, Consultants and various Supervisors.
Finally we reach the Sales Representatives, Customer Service Representatives, Stockers, Cashiers, Cleaners, Drivers, etc.
So who makes the most money in this type of structure?
If you were to draw a flowchart this, it would look like a “Pyramid” The CEO makes the most money as he/she sits at the top. Below them are a few upper management people, then more middle management, then most of the workers. It is the person at the “top” of this “pyramid” that makes the most money, because in this type of structure, you are paid based on “where you are” in the structure. So, how do you make more money here? The only ways you can truly increase your earnings are if someone in the structure is promoted, gets fired, dies, or quits. As a result, everyone in the structure can move up.
So.... Let's take a look at a Network Marketing Structure and then compare. On the surface, both structures are mirror images of each other. BOTH look like a “Pyramid” structure. Flowchart it out again. An affiliate will sponsor someone, they sponsor more, they sponsor more...etc. But...who makes the money here? The worker at the top? Possibly, but most likely not. Here's why:
Even though this structure looks identical to a corporate structure pyramid, in the MLM structure you get paid STRICTLY on what you produce and the work you do, not on where you are within the structure. Wouldn't it seem fair that if you do more work, you should get paid more money? This structure is simply a structure of business owners. Pay is based ONLY on what you do, not your position within the network. This is what differs Network Marketing from a typical “Corporate Structure Job”.
In the MLM structure YOU are in control of your income. In the corporate world, someone else will always be in control of your income. Always!
The Truth About Building a Network Marketing Business Online
So, you are ready to start your network marketing business, and you want to build your business online. Great! The Internet offers almost boundless opportunity for finding and contacting excellent prospects for your new business. But, beware - beneath all that potential there are a few things you need to consider, to ensure that your new venture is successful.
Network Marketing - a People Business
No matter what anyone tells you, a successful and long-lasting network marketing income is not going to be built around anonymous online marketing. Putting up a website and then expecting people to just sign up and make money for you isn't realistic. Internet prospecting is just a tool that enables you to identify people who have an interest in a home business. It will still be up to you to personally contact these people and help them. You have to be willing to pick up the phone and talk to people. You may think, "but I hate selling". I hate selling too. I don't consider calling someone who has contacted ME to be selling - I think of it as providing information. I never "close" anyone on my business - my online tools provide the information, I fill in the gaps by talking to interested prospects, then let them make the decision. If you have to "sell" the business to someone, they won't likely pursue it for long. You don't want that.
The Reality of Online Advertising
I see it all the time - "blast your ad to 500,000 classified ad sites". So goes a typical pitch that many marketers use to sell their submission software and service. The reality is, blasting ads to FFA link sites and free classified ad sites rarely, if ever produces a real prospect for you. How many people really look at these sites, anyway? How many times have you personally looked for opportunities among hundreds of links plastered on a web page somewhere? Effective online promotion of your network marketing business will require spending some money to put ads where people will actually view them. One strategy I use is to purchase keywords in pay-per-click search engines - keywords directly related to my home business. I get many of my prospects this way. I also have small, inexpensive ads on several "work from home" business sites that receive a lot of traffic. With online advertising, you get what you pay for.
Online Sales Tools
Whatever network marketing company you join, if you are going to promote and build it online, you will need a web site. Some companies provide free sites to help you. Some even provide turn-key prospecting systems that collect information about your prospect and guide them through presentations that help them to make a positive decision to join your business. The company you choose should provide these tools for you, and they will if they are serious about supporting online marketing efforts.
Consistent Follow-Through and Commitment
Whatever network marketing company you join, remember that your success will be measured in large part by how much time you spend following up with prospects, and how well you do it. I've seen many people come into my business, set up their free web site, and then sit back and wait for something to happen. It won't - you have to take whatever tools you've been provided, and make something happen.
Why Do You Want to Build Your Business Online?
This is a big one. Think about why you want to build your business online. There are many great reasons, a few of which I outlined above. One BAD reason to desire an online network marketing business: you don't like to talk to people, or you want to do everything by email and never have to talk to anybody "live". You must enjoy working with people to be successful in this business. Your online tools can be of GREAT help to you in building your business, but that personal touch is still critical to your success.
The Best Thing
To me, the best thing about online marketing is that you get to talk to prospects who have contacted YOU and who are ready to talk about starting their business. This sure beats the old way, where you were prompted to contact every friend and relative and told to drag them into home meetings and such. Few of us have the time or desire to build a business in this way - which is what makes online networking so special! But always bear in mind - network marketing is still a people business, and you need to always approach it as such.
In his book, "Super Prospecting: Special Offers and Quick-start Systems", Tom "Big Al" Schreiter tells the story of an old lumberjack who observed a young lumberjack laboring to chop down a tree. After watching the youngster work himself to nearly exhaustion without accomplishing much, the old man said, "Looks to me like it'd be easier if you sharpened the axe."
To which the younger man replied before returning to his attack on the tree, "I don't have time to sharpen the axe, I have to get this tree cut down."
Now, it seems obvious to most of us that a sharp axe would probably make the work go faster and easier. The young lumberjack would be able to cut down more trees with less work just by taking a few minutes to sharpen his axe. Prepare his tools. Learn his trade, you might say!
You know, it's funny. Most of us have no problem seeing the point of that story, but everyday, people sign up for network marketing programs and then start hacking away with very blunt axes! Most of these folks have no idea of what network marketing is, how to go about it, or how to measure success.
I recently received an email from a gentleman interested in getting into network marketing. He asked some very insightful questions, but one demonstrated his misunderstanding of most genuine network marketing programs.
He asked, if I remember correctly, how long it would take to make a significant income from a certain network marketing program, and seemed to indicate that he would expect a sucessful program to generate an income of about $48,000 or more within a relatively short period of time. Otherwise, he would consider it a scam.
Well, honestly, I guess my two friends who I often hold up as examples somehow missed that point. It took each of them about three years in perfectly legitimate programs to begin making money anything like what my correspondent expected. At that point, by the way, their incomes began to grow exponentially until they were taking home over $100,000.00 a month. We'll say nothing about countless Avon ladies who are network marketers who consider themselves successfully affiliated with an honest company but whose income is less than $20,000.00 a year.
Or, I guess I should be concerned about my affiliation with a nationally recognized company (you've probably seen their commercials on prime time). The first year, I only made a few hundred dollars. The second year a few thousand. I'm in my fifth year with them, and I am now making the magical number...a six figure income from that program alone. I presently have over 200 fully satisfied customers and tons of repeat business. What a scam!
I don't mean to insult the gentleman who sent me the question. His questions were valid, and I understand his concerns and applaud his attempt to gain some insight into network marketing. However, it appears his understanding of network marketing is limited to a desire to find a program that will in some way do the work for him...make income for him. Unfortunately, network marketing is a business...albeit a special kind of business...and it works best when worked certain ways. Many successful network marketers have written many excellent books and articles on the subject, and there are marketing and internet marketing training programs available for those who wish to learn. Some colleges are even offering courses and classes on network marketing and internet marketing.
People going into network marketing should be doing more than simply listening to the person who recruits them and scanning the company literature. If they were hired to do any job they had never done before, no matter how menial, they would recognize the need to familiarize themselves with the business and how it is conducted. Especially if they intended to rise in the business and succeed.
A few books the beginning network marketer might want to read are:
Super Prospecting: Special Offers & Quick-Start Systems by Tom "Big Al" Schreiter
Your First Year In Network Marketing by Mark and Rene Yarnell
The Wave 4 Way To Building Your Downline by Richard Poe
The Greatest Networker In The World by John Milton Fogg
Off-The-Wall Marketing Ideas by Nancy Michaels and Debbi J. Karpowicz
These tend to be a little old but can probably be found thru Amazon, and they are excellent education for the beginning network marketer.
The person who fails to educate himself or herself about network marketing in general and their chosen business in particular, has chosen to fail. Like the young lumberjack, they will flail at the tree until their strength or motivation fails them, and then they will wander into the forest...perhaps complaining loudly about trees, axes, lumberjacks...anything but themselves. They will not know why they failed, how they could have succeeded, or how to measure success.
Multi-level marketing is an enterprise system which puts emphasis on recruiting distributors. It is commonly used by the industry, and this term implies that success depends on building a distributor interconnection and that payouts occur at two or more levels. In some cases, this is also used to indicate that there are links of product suppliers enabling distributors to offer a broader selection of products.
In a typical multi-level marketing or network marketing arrangement, individuals associate with a parent company as an independent contractor and are compensated based on their sales of products or service, as well as the sales achieved by those they bring into the business.
In a legitimate MLM company, commissions are earned only on sales of the company's products. No money may be earned from recruiting alone ("sign-up fees"). Some less legitimate companies produce revenues primarily by attracting new participants or selling them marketing services, as opposed to selling actual products. One must analyze the compensation plan to determine whether participants are paid from actual sales to customers and not from new-recruit bonuses or business support sales.
Multi-level marketing has a recognized image problem due to the fact that it is often difficult to distinguish legitimate MLMs from illegal scams such as pyramid or Ponzi schemes. MLM businesses do operate legitimately in most countries, and new businesses may use terms like "affiliate marketing" or "home-based business franchising". However, many pyramid and Ponzi schemes try to present themselves as legitimate MLM businesses.
A pyramid scheme is a non-sustainable business model that involves the exchange of money primarily for enrolling other people into the scheme, usually without any product or service being delivered. Ponzi schemes, however, is a fraudulent investment operation that involves paying abnormally high returns ("profits") to investors out of the money paid in by subsequent investors, rather than from net revenues generated by any real business.
Most of these schemes take advantage of confusion between genuine businesses and complicated but convincing moneymaking scams. The essential idea behind each scam is that the individual makes only one payment, but are promised to somehow receive exponential benefits from other people as a reward.
Multi-Level Market scams generally have extremely elaborate marketing materials, such as professionally directed and produced audio-video tapes to show potential commissioned sellers, conventions with "guest speakers" who offer testimonials about how much they have made on the scam and how wonderful the product is, and awards and prized for the commissioned seller with the most sales.
Clearly, the fundamental flaw is that there is no end benefit; the money simply travels up the chain, and only the originator (or at best a very few) wins in swindling his followers. Of course, the people in the worst situation are the ones at the bottom of the pyramid: those who subscribed to the plan, but were not able to recruit any followers themselves. To embellish the act, most such scams will have fake referrals, testimonials, and information.
The scams that have mushroomed have been very damaging to legal MLM companies. To avoid illegitimate multi-level marketing, we should be wary if the start-up cost for the investment is too expensive. Know the consumer market for the products and its officers. If the company seems to be making money by recruiting alone, there certainly is a bluff. And the surest way to distinguish false MLM companies is to contact your local business bureau.
Multilevel marketing is picking up a lot of steam. This is due to the large amount of people online that are hyping multilevel marketing and all of the profits that go along with it. the number of interested parties began to increase. And with this has come the notion that multilevel marketing is not going anywhere.
If you are not familiar with the business, you should bone up on the details as soon as possible. Generally speaking, it is a way to make money when you sign people up for a certain service or product. And to take this a bit further, with this business you can also make money when the people that you sign up recruit members of their own. So in general terms, you will make money with a pyramid type effect.
For people that are interested in multilevel marketing, the best place to start searching is online. There are hundreds of companies that you can sign up with in order to make money. Just make sure that what you are doing is legal. There are a lot of busineses out there that are not legal in the majority of the states. You can avoid this without any complications by getting hooked up with a campaign that is run by a reputable company.
If you are not sure if this opportunity is right for you, look into the benefits that it offers. There are many online forums devoted to multilevel marketing. By becoming a member you can ask questions to more experienced marketers. They will be able to give you advice on where to start and how to progress.
Simply put, you will want to read up as much as you can on multilevel marketing before you get started. Just like anything else, the more that you know about something the better chance you have of being a success. Since it is relatively new, it is very important that you are familiar with the industry as a whole.
Multilevel marketing is definitely here to stay. There are enough people out there making money with this opportunity that the popularity will always be high. For people that are searching for a way to make cash online, multilevel marketing is always a good option.
Overall, check it out if you are interested in a new way to make money online.
Making Money with MLM
In every MLM program, there are inevitably those who profit more than others. These elite few are also those most often identified to such programs. They drive fancy cars, live in large mansions, and cash in massive commission checks every month.
In contrast, there are also those who never seem to get anywhere with their programs. They work hard enough, but their work just does not seem to translate to real results. This is because they are missing a key ingredient: technology.
In recent years, multi level marketing has gone high tech. Some of the most successful companies in recent memory, were those that introduced cell phones or internet based products in to the MLM mix. However, the contribution of the technology seems to have stopped there for some members, to their detriment. They simply have not been able to tap into what is available.
If you wish to make it big in the marketing world, you must learn to do a few things very well. One, you must learn how to sell the largest number of your products to the largest number of possible people. Two, you must learn to attract and utilize skilled people that can help you grow your marketing venture. Both skills are certainly attainable using conventional methods but technology would make them far easier to master.
The big secret to making money from multi level marketing is to learn how to use technology to your advantage. At the top of the technology list is the internet, which is the centerpiece of the new world economy. As we go deeper and deeper into the new millennium, expect the internet to grow at exponential rates and for internet business to become more and more successful. As the global market made possible by the internet consolidates, more and more financial opportunities will come up.
The growth of the internet is there for you to take advantage of, and if you are really serious about making it big in the MLM game, you will not ignore it. Embrace technology as it comes and learn to utilize it to suit your ends. There are various ways you can do this. You can start selling web based products, place ads for partners, write a newsletter, create a content website, all things that you can do as part of a multi level marketing program. Additionally, recruiting and related activities can be facilitated by the instant communication made possible by the worldwide web.
By taking advantage of todays high powered technology, you will put yourself on the fast track to MLM success
If you are looking to make money online without doing anything you are not alone as the common misconception is that tarting an online business will have you rolling cash in a matter of days. That just is not how it works. The people offering you ideas for a home business at one time had to groom an idea into a working model and then bring in other people to help their idea blossom.
Affiliate networking can be good business from both sides of the financial network both the affiliates advertising a business and the business recruit affiliates to push their products for them. Unlike the old days when a person pays for advertising and hoped for results, in todays affiliate marketing they pay for the results of the advertising. The affiliates can even make money recruiting others to advertise their website, which brings then more visitors resulting in more sales for those whose advertising they carry.
That may sound confusing but breaking it down you can see how it makes sense, as well as dollars. A person can start a website to offer their own products or services and to bring in a little more income and help pay the maintenance on their site, they become affiliates of other businesses. By placing the ads on their sites, they are promised a share of the profits on any sales resulting from that placement. They now recruit another person with a website to promote their website, offering payment based on the sales from their site and if a customer buys something, they both make a percentage of the profit.
This creates an affiliate multilevel marketing network in which everyone makes a small amount of money from the sale of one item. It becomes a profitable business when more visitors come to your or your affiliates website and make purchases. Advertising costs are contingent on sales being made so it is to everyones financial benefit to promote their site to improve sales. For example if you make $5 a month by successfully promoting your site and allowing visitors to pass through and make purchases from someone else, you may not believe it to be worth the effort.
Consider you have 100 businesses you are affiliated with and make $5 a month from each one. Now consider having 100 affiliates bringing another 1,000 visitors to your site each month and those people also make purchases. You could be realizing an income of over $5,000 a month for maintaining and updating the links coming from your affiliates and those links to the sites of which you are affiliated. A few hours a week can lead to a good income. You may consider starting a second site to grow into another income stream that could double your effort as well as your income.
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