General info on Multi Level Marketing

edwinb: Win The Race--Stay In One Place!
Leonard Clements

One of the saddest things I see happening in this industry is the huge number of folks who wander aimlessly through this ever widening sea of network marketing opportunities. These are people who indeed find an island oasis from time to time, only to jump right back into the cold, rough surf in search for a "better" paradise. As I watch them swim away, I know their fate--another island, another return to the sea. Then finally, with no strength left to swim another stroke, their hopes and dreams for a better, more secure life through network marketing sinks to the ocean floor. But alas, there is no floor, for it has been covered, layer upon layer, by the drowned hopes and dreams of so many others before them.

Or, we can liken these people to a marathon participant who runs the first of a 20 mile race, then sprints back to the starting line--over and over and over. Then, he/she stands confused and frustrated by his/her lack of progress (most likely blaming the course, his/her shoes, the race promoters, the weather).

You see, building a network marketing organization takes time. It takes patience. But, what few distributors (in any opportunity) seem to realize is that it gets easier, it happens faster, as time goes on. So few MLM distributors stick around long enough to see this happen. Think about it for a moment. You start out with one person building your organization--you! Then you sign up a couple friends. Now you have three people all working to build your organization. In a month or two, you might have only twelve people in your downline. But, that's twelve people who could all contribute to your downline. The more your group builds, the more people there are to help build it even bigger.

This phenomenon, called geometric progression or "momentum," does exist, and it can occur within your own personal downline much like it does for a company. After all, aren't all the distributors in an MLM company part of one really big downline? Your downline can go into momentum too, on a smaller scale of course. However, depending on your activity, the opportunity you're involved in, and at least a little luck, this onset of your own mini-momentum might take three months, five months, perhaps a year. As long as you're recruiting at least one new distributor every month or two, it is mathematically inevitable that your organizational growth will begin to accelerate on it's own.

So let's say, for the sake of example, that momentum would strike around the sixth month. How many people in this industry do you think are long gone from their opportunity before they even approach that sixth month? After all, they're not rich yet, and the promises of all those other opportunities are just so enticing, aren't they? Well, the answer is thousands. Thousands!

And, how many hopes and dreams lie at the bottom of the MLM ocean? That's right--thousands. It's no coincidence.

The ocean's cold. There are sharks out there. Find a nice warm island, make it your home, and see what you can build on it.
Almost funny, given Len has jumped all over the place in last few years, as have most, and why, because there are too many me too MLM's out there these days. Juice wars is just one example, how many of them are there now, I lost count, as I am sure Len has. lol

Success to all,

I believe that multi-channel marketing is the concept of offering your product to the customer when they want, in the way they would like. Multi-channel marketing aims to meet the customer where they are to give out them better.

MLM is not for babies. It is hard work. Good reputable businesses can take months to develop even with hard work. One of the things I have found out is that it comes a little easier with a presense on the computer. Trying to track down cold leads and "convince" them that they are interested is a very slow, painful way to go. But even internet marketing is hard work that takes time as well as money. A person just needs to go into an MLM with their eyes open. It is not a get rich quick scheme.

Thanks drunyan! Your thread is very informative. I also believe the same.

Multi-level marketing (MLM), (also called network marketing direct selling, referral marketing, and pyramid selling) is a term that describes a marketing structure used by some companies as part of their overall marketing strategy. The structure is designed to create a marketing and sales force by compensating promoters of company products not only for sales they personally generate, but also for the sales of other promoters they introduce to the company, creating a down line of distributors and a hierarchy of multiple levels of compensation in the form of a pyramid.

I am going to be changing mlm companies because of the amount of product they make you buy each month to stay qualified. Other thank that I like the product, but am having a hard time signing people up because of the price. All of this talk has me really confused as to which company I need to look at to join. I had about three in mind, but all offer something different. I just don't know what path to follow. I want the best for me. I am a hard worker, but mostly computer oriented. I just am not sure which way to go now.

drunyan: I am going to be changing mlm companies because of the amount of product they make you buy each month to stay qualified. Other thank that I like the product, but am having a hard time signing people up because of the price. All of this talk has me really confused as to which company I need to look at to join. I had about three in mind, but all offer something different. I just don't know what path to follow. I want the best for me. I am a hard worker, but mostly computer oriented. I just am not sure which way to go now.
Agreed,

Sadly, those MLM companies which require autoship of XXX amount per month are sadly going to pay for it in the long term with the typical attrition which kills most companies within 18 months on average.

We all know why companies mandate autoship, but have you ever wondered that if there was no mandatory autoship how many of your people would stay with a program longer than with autoship?

It all comes down to this in my experience. Most people never earn more than the burn trying, and this is due to autoship requirements in almost every case. The typical autoship is $50.00 to $100.00 a month, and sadly, most MLM products are overpriced to begin with, so unless a distributor is earning $50.00 to $100.00 per month within three months to cover their autoship, they quit, hence, massive attrition rates which most cannot overcome.

Attrition is the number one killer of all MLM's, no matter what or how good your product or service is, in a recession this severe, unless you are saving your customers and distributors money from first month, you will likely see attrition after just a few months. If there was no mandatory autoship to earn overrides, you and your customers would stay involved longer and if they stay as distributor longer, most would discover success is possible without autoship.

We all know why autoship is so common, it pads the pockets of the so called heavy hitters at the top, and the company which knows the truth, most will not stay involved if they cannot break even in less than three months, so they milk people by requiring autoship immediately. Personally, I feel it would be a benefit to allow people the first three months without mandatory autoship, and if a product or service is of value, more people would stay with company verses the majority who quit. MLM is not easy, but autoship makes it even more difficult in a recession.

Success to all,

Multi level marketing is a system of retailing in which consumer products are sold by independent businessmen and women (distributors) usually in customers' homes. Distributors are also encouraged to build and manage a sales force by recruiting, motivating, supplying, and training others to sell the products or services. Distributors' compensation is then based on the sales of the entire sales force in addition to personal sales. What distinguishes multilevel marketing from illegal Pyramiding is the possibility (however small) of making money at a single level, without sponsoring representatives at lower levels.

I am very thankful that there are companies around who do not have or demand auto-ships in order for their members to get paid. Twelve years ago I myself had the cliche of a garage full of product that I didn't need and couldn't sell.

Back then I also knew a very successful distributor who because of an oversight on his part was $1.98 short in his monthly auto-ship order. Because of the rules of that company.....He missed out on receiving a $30,000 commission check. Even though he had been with the company since the beginning and helped it grow and even though he asked the president to reconsider....he never got that check. To me that was a crime.

I am certainly glad to see that things have changed for the better in this industry and that there are now many companies that won't penalize your paycheck if you don't meet a monthly purchase quota.

LGNLinda

Agreed,

I feel the same way, not a fan of autoship, but there are exceptions, as in, good product or service at a low price for same items you would be purchasing for more elsewhere, then autoship makes sense. Yet how many MLM deals truly have products you would purchase without the income opportunity attached?

I research them all, and when you break them all down, very few offer true verifiable value, enough so that you want to purchase every month. lol I have only found a few, very few, but I am always open to finding more to add to my recession proof business review site. It is all about value and saving money in a recession, and most MLM's are overpriced me too products for the most part.

Success to all, Mike

When evaluating and considering joining a new network marketing company, you must ensure they have the 6 Key Elements in place that will most often dictate if the company has a chance to succeed or will quickly become another big disappointment for hundreds of hard working network marketers:

1. Product that benefits to the consumer. Is there a demand?
2. Company must be well-funded
3. Professional management team
4. Is the company attracting Leaders?
5. Correct Timing of the Venture
6. Compensation plan must favor to the distributors not company

There you have it. These were the 6 Key Elements a new network marketing company must have in place in order to achieve success and longevity in this industry.

I have been involved in several network marketing opportunities over the years. And sincerely I have come to the conclusion that the best mlm opportunities,legit mlm opportunities, are really tied into a good direct sales model. that is where you get paid today good income,without sponsoring anyone. This eleveates the frustration of depending on a fledging down-line. And believe me with the advent of this internet, folk leave early. On to the NEXT GET RICH QUICK SCHEME.

Out,


Wendell

MLM, or multi-level marketing, is a very justifiable home based business that can be very profitable. The nice thing about starting a home based business with MLM is that you don't even need a college degree or any type of experience. You don't have to go to their facility to pick up the products. They are shipped to your house on a monthly basis. They also take care of the product shipment to your down line team so you don't have to do any of that.
You also have the possibility to work with anybody that you choose to work with. You can choose to work with winners and not with people who may waste your time.
Another benefit of MLM is that your income is leveraged by your team's efforts. You can sponsor somebody new to the business and it is very possible that this single person will bring in tens and if not hundreds of people in his or hers own team. Once this is done, your income will just keep growing and growing for years and years to come.

Picking the right company will most likely take research. If the company is really credible then they should be affiliated with the Direct Sellers Association. If not I wouldn't trust that company. If any company tells you that you will become a millionaire in no time they are frauding. It takes hard work and dedication to become successful in any field. MLM is the way to go nowadays though...Linear income is not a wealth principle...Where else can you find a business where people are more than ready to help you become successful. Life should be lived in abundance. We shouldn't have to work for 40 years to retire with 40% of what we worked so hard for. We have to position ourselves to be able to pass our businesses on to future generations...now this is what you call breaking the curse on generational poverty.

MLM or network marketing is when you actually recruit other sales people into an organization or down line in order to sell products. This type of marketing has been confused with illegal pyramids in the past, but in actual fact, some of the largest marketing organizations such as Avon, Tupperware and Amway, to name just a few- can all be categorized as MLM.
First, you have to find the business that you will find interesting and you will want to stick with. Researching Yourself Before you start looking at MLM companies you need to look at yourself.

Great thread..can I add a bit?

MLM is nothing new. I first encountered it about 20 years ago but was hugely naive.

Since then, I have realized how powerful a business model a good MLM company can be. It is especially good because this model allows ordinary people the chance to enter and build a business at low cost and therefore low risk.

In trying out a few, companies and products I realized that some were already household names - like say Avon, Mary Kay, and some gave it a bad rap, like Amway.

When I found a company I liked, it was easy to be a loyal product user, but then turned my attention to building it as a business a few years later. I found the biggest hurdle for me was pretending I was "sharing "something...well I was, but in truth I was selling something... even if it was GREAT.

That's when I found Attraction Marketing and it made sense.

Let me just say this - it really does work but learning the ropes takes time and effort. The idea is this: help people first and if they like you, they will try to find out more.

Adopting this model, I soon learned that using a company website was bad news. Yeah they are pretty and have lots of info and opportunities to sell stuff, but they are more of a catalog than an informative hub that helps people find out stuff and leads them to make up their mind.

So next I had to learn to article marketing, blogging and how to create simple websites to host pages designed to find interested prospects who might want to join me in business one day.

There is so much to learn doing this, but it is fun and rewarding.

My point? Choose a company that sits well with you (it doesn't really matter which one so long as it is reputable), then have fun learning how to build your business using attraction marketing principles.

In my opinion MLM or network marketing is when you actually recruit other sales people into an organization or down line in order to sell products. This type of marketing has been confused with illegal pyramids in the past, but in actual fact, some of the largest marketing organizations such as Avon, Tupperware and Amway, to name just a few- can all be categorized as MLM.

To me...a pyramid scheme was the corporation I worked for prior to joining network marketing - the guy at the top was the one who made all the money. Should have been illegal

Whatever you call it, multi-level marketing - mlm...they are all the same....Avon, Tupperware, Amway, Pampered Chef, Mary Kay and thousands more reputable companies are structured this way and many have been around since the 1800's.

We build networks. We are the owner of a company with the ability to leverage a system that is already in place. All we do is bring our passion, fire and coach-ability and become a leader who inspires others to leadership.

There is no better way to make a living, no better way to leave a legacy.

Ginger Hogue

Gotta love mailbox money.

Thanks for the definitions, very informative.

Sincerely,

Tom

Very nice information thanks for sharing us..this is very useful tips for all..