What is MLM ? Or MLM for the dummies

When I first started in this industry, it was because of an add saying:

Need a JOB ? CLICK HERE

I had NO IDEA what MLM or Network Marketing was, or even that it was possible to earn a living on internet. So even though I was being bombarded with information, it took me a while to understand what all those people were talking about, simply because I was missing the very basic principles of the industry. So Ill try and reduce the learning curves of you newbies, as much as I can with this little article

MLM means Multi – Level Marketing. It is a form of marketing that involves selling a product with multiple levels of sale representatives. A primary company gets sale repsentatives to sell a product. Each time a rep (also called distributor of the product, member, affiliate, partner or associate ” yes, thats a lot of names!) sells something, he gets a percentage of the gain.

In a traditional Marketing system, the primary company would hire his distributors and pay them at a fixed price, independently from the results they get. MLM companies on the other hand pay commissions, which means they are not restricted to a certain budget and can recruit endlessly. There is also no limit to how much each distributor can earn. However, he (or her !) is responsible for his own pay.

Then those distributors can also recruit their own sales reps, and earn extra money from commissions made from those new distributors. This commissions pays him for the work he has done to train the newcomer. (The newcomer is his down line, and his trainer is his up line.)

So if someone trains few people to sell a product, who will then also train their own recruited group to sell the product, and each person of those group train their own team, then there is a Multi-Level-Marketing system in place. How many level an MLM can have is not limited. Commissions can be made from endless levels or be limited to a few or even one level down, depending on the company’s policy.

MLM or traditional companies alike have one goal in common: to provide a product or a service that makes a consumers life better. But no matter how brilliant a product is, it will only get sold if it is known by the targeted audience. The distributor’s job is to find that targeted audience and to get the product in their hands.

MLM systems are absolutely legal as long as they involve a real product, as long as they actually have some sort of value to sell. If they are only about recruiting new sales reps, then it becomes what is called a pyramidal scheme and is illegal. So when you join an MLM business, you need to make sure you know what you will be selling.

—————————————-
Get FREE Access To These Great Programs And Start Making Residual Income: SFI | WebProsperity | Plug-In Profit Site with 6 Streams Of Residual Income-Setup FREE. Also Grab 85 Private Label Rights Products for FREE Here.
—————————————-