Wednesday, September 25, 2013

What's Multi-Level Marketing?

By Joe Burke


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?

In case you punch the question into Google you will get a whole bunch of answers. So are good but others cast dispersion on the industry.

What exactly is Multi-Level Marketing?

Direct sales is a way of selling products by using independent distributors and business owners. The model has been around for over a century and it works extremely well. It delivers a superb opportunity for people to start their very own business and usually with little capital investment.

In comparison with a franchise, an MLM business is much more cost effective for most people. A franchise attached to a well-known company name can cost hundreds of thousands of dollars. Though theoretically it is your business, their can be rules that must be adhered to, according to your agreement as a franchise. Most also require a monthly fee.

Compare that to spending as small as $50 or as significantly as $2,500 to get started having a solid network marketing business that provides exactly the same revenue potential and you start to see the difference quickly. Plus, given that your upfront investment is less, so will be the downside risk.

If you join a network marketing firm as a distributor you operate as an independent contractor so there's a lot more opportunity to build your business when and how you wish, if you'd like. You'll be able to build your business full-time, part-time, on the web or offline. You are able to be open for business seven days a week or seven days a month. It's your business and the CEO of one's own business, you happen to be the boss and you make all the decisions.

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's Multi-Level Marketing? - It is a Leveraged Revenue Model

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

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.

Consider it this way. Let's say it is possible to work in a full-time 40 hour week, toward building your business. Let's also say you can earn as much as $100 per hour for the time and effort which puts the maximum it is possible to 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 each hour they perform... and they can work only two hours per week. You're nevertheless putting in only 40 hours per week but are you currently pocketing over $14,000 per week.

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.




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