An Explanation On Multi Level Marketing

What is multi level marketing? Taking it to basics, MLM is a marketing technique used by businesses involving the leverage of independent marketers to sell to clients and customers that would otherwise not be reached using traditional marketing techniques. In fact, it could be equated with an advanced form of affiliate marketing.

In affiliate marketing, affiliates sell products and get paid a commission for doing so.  With some affiliate programs, if affiliates recruit other affiliates then they not only earn cash from their own sales, but also earn a proportion of the sales of those they recruited. This is exactly the same as MLM, only MLM is more structured.

The compensation plan is the system that determines the earnings each member of the marketing program, and is designed to reward these independent marketers that are able to recruit others to sell the program.  These others are known as an individual’s ‘downline’ and the compensation plan enables the person recruiting them to earn a proportion of the sales of each person recruited – sometimes down to an unlimited number of levels.

Multi level marketing is a form of network marketing whereby product sales are critical, and the best MLM opportunities have good selling products that bring the wealth into the business. It is essential for a network marketing program to work properly that its foundation is a combination of good products and good teams promoting these products.

That understood, multi level marketing is two things:  it is a means of effectively marketing a product, and it is a means for people to make money both by selling the product and recruiting others to sell it for them.

With multilevel marketing, you can make money without selling anything if you choose to focus on recruiting and building your downline, and this is perfectly OK, both legally and as a means of running a home business online. Others prefer to make the bulk of their income from direct or indirect sales, or a combination of each.

Direct sales involves meeting people face to face, examples being Avon and Tupperware, and also Amway before the internet came along. With indirect sales you offer the products from your website, and sell online rather than to individuals by running parties, groups meetings and so on. However, the real power of multilevel marketing lies in your downline, and it is no coincidence that those making most money also have the largest downlines.

Many who understand fully what multi level marketing is can build a large downline of people devoted to them and that will follow them from one MLM program to another.  This is because such successful members of network marketing programs take care of their downline. They help their recruits to make as much money as possible by offering coaching and training sessions on topics such as online advertising, how to build an emailing list and how best to recruit members to their own downlines.

Keep in mind the ‘multi-level’ of MLM:  if your recruits build long downlines, you benefit from that yourself.

Looking after your recruits in this way definitely helps to bring you in more income. Keep in mind the ‘multi-level’ of MLM:  if your recruits build long downlines, you benefit from that yourself. Ultimately, of course, they must sell products, and part of your focus should be on sales.

You can either sell the product yourself or focus your time on training others how to do so.  Selling involves a different skill set than recruiting does, and it is those that are proficient in both that become the most successful.  Not necessarily because they are doing it themselves, but because they are able to teach others.  The old saying, “If you can’t do it, teach it” is very true in multi level marketing, and you can benefit by doing nothing but training your downline.

Getting back to the question ‘What is multi level marketing‘ – or MLM as it is known in short, many people have a false impression of MLM having read all the misinformation online, but if these same people actual became involved in it then they would clearly see what a great opportunity is open to them.

They wonder about how they can tell a good MLM program from a bad one. While one or two short-lived multi level marketing programs do crop up now again that charge people exorbitant sums to join, the best ones have good products that are popular, useful and good for repeat sales.

Products that last, such as cars and leather sofas, are no good for MLM – there must be rapid repeat sales, as with vitamin supplements or cleaning products, health products, and consumables are the best type of product. For a really successful MLM campaign you want to be able to sell to your customer list multiple times without annoying them, and a good consumable product that your customers will want to continue purchasing is best.

The compensation plan should be good, and enable you to be paid well down into your downline.

The compensation plan should be good, and enable you to be paid well down into your downline. The originators of the product and the MLM program should have a good track record.

However, ultimately, ‘what is multi level marketing?’ – it is partnership between supplier and vendor that enables the vendor (you) to recruit others to sell for them, and for everybody to share in the income of the business according to how many people they have selling on their behalf.
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Brian Verigin, Let Me Teach You How To Make a Blog …. Part of the training given by me with YahSuccess.

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