You'll find many misconceptions and a lot of poor press attached to network marketing and MLM - so what's multilevel marketing genuinely?
If you punch the question into Google you will get a whole bunch of answers. I guarantee the words "pyramid scheme" and "scam" show up someplace.
What is Multi-Level Marketing?
Direct sales is actually a way of retailing through a distribution channel comprising independent distributors and business owners. The model has been around for more than a century and it works really nicely. It offers an excellent opportunity for people to start their own business and frequently 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 a typical distributor enrollment fee which can be as small as $50-$500, so there's little economic danger.
With MLM you have total freedom where it comes to promoting and marketing your business. It is possible to work the hours you select, part-time or full-time. You are able to also plod along fairly happily producing an additional couple of hundred dollars a month or build your personal distribution network and really increase your monthly income.
Treat your business like a business and it'll pay you like a business. Treat it as a hobby (as most people do) and it's going to pay you like a hobby. The choice is yours.
What exactly is Multi-Level Marketing? - It's About Leveraging
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 can be called residual income and may be the best component in the MLM system. Other people are performing the majority of the work and you benefit financially. Naturally you can find administrative and instruction aspects that you just must get involved in, to make your team much more profitable. The harder you work on building a successful downline from the start and naturally you'll love the business and want to keep expanding.
So the answer to, "What is multi-level marketing?" is basic. What do you need it to be for you? The model delivers an unlimited earnings opportunity for all those who get in and get busy. Will that be you? Only you'll be able to answer that question.
If you punch the question into Google you will get a whole bunch of answers. I guarantee the words "pyramid scheme" and "scam" show up someplace.
What is Multi-Level Marketing?
Direct sales is actually a way of retailing through a distribution channel comprising independent distributors and business owners. The model has been around for more than a century and it works really nicely. It offers an excellent opportunity for people to start their own business and frequently 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 a typical distributor enrollment fee which can be as small as $50-$500, so there's little economic danger.
With MLM you have total freedom where it comes to promoting and marketing your business. It is possible to work the hours you select, part-time or full-time. You are able to also plod along fairly happily producing an additional couple of hundred dollars a month or build your personal distribution network and really increase your monthly income.
Treat your business like a business and it'll pay you like a business. Treat it as a hobby (as most people do) and it's going to pay you like a hobby. The choice is yours.
What exactly is Multi-Level Marketing? - It's About Leveraging
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 can be called residual income and may be the best component in the MLM system. Other people are performing the majority of the work and you benefit financially. Naturally you can find administrative and instruction aspects that you just must get involved in, to make your team much more profitable. The harder you work on building a successful downline from the start and naturally you'll love the business and want to keep expanding.
So the answer to, "What is multi-level marketing?" is basic. What do you need it to be for you? The model delivers an unlimited earnings opportunity for all those who get in and get busy. Will that be you? Only you'll be able to answer that question.
About the Author:
Joe Burke writes using the names jbmuchin and augustus1. His many topics include MLM, Internet Marketing and Network Marketing. His writings can be found on many article directories.top networking marketing companies, andtop network marketing companies
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