MLM Marketing is a marketing structure that is used by some companies. The structure is designed to create a marketing and sales force by paying promoters for both the sales of the companies products they make and for new distributors they bring into the business that will go on to promote the companies product as well.
Anyone who joins and promotes the companies products are known as distributors. They do not earn a salary but instead they are awarded a commission dependant on how many sales they make themselves and the sales their downline make. This process is similar to a franchise.
A downline is the people that have bought into the company via you. You will get paid for them joining and earn a percentage of any future sales they make.
So here's a few examples of MLM businesses; Quick and easy to get set up, Can start straight away if you like, if you join near the top of the MLM business line you can stand to make a lot of money by building a large downline and earning lots of commissions.
However there are Disadvantages of MLM's: The methods are now becoming dated; this is because most MLM models encourage you to sell to your friends and family. They also involve cold calling which is where you ring up people and tell them about your product or from a list of people you can buy that have bought similar products in the past or have been used by other people in the MLM. If you join near the bottom of the line you don't stand to make much money as the market has already been saturated by the people in your upline People with more advanced online and offline marketing techniques will do better than you Most MLM's are pyramid schemes (which are illegal) in disguise
So in my opinion MLM's are out dated nowadays as the marketing techniques have been around for years and more modern business models take so many sales away from MLM businesses. Nearly all MLM's do not teach you how to market their product instead you have to pay additional for education in marketing
Now there of course there are people making money from MLM's and I'm not by any means trying to say they cannot make you money, but there is a very high failure rate as there's a lack of training and support!
One of the main reasons people choose to make money online is to have free time but at the beginning you will spend most of your time on the phone selling your product and most people will not buy from you which leads to you getting disheartened and is the main reason people give up!
However if you have got your mind set on joining an MLM make sure you join near the top of a line and that there will be the support and training you require!
Anyone who joins and promotes the companies products are known as distributors. They do not earn a salary but instead they are awarded a commission dependant on how many sales they make themselves and the sales their downline make. This process is similar to a franchise.
A downline is the people that have bought into the company via you. You will get paid for them joining and earn a percentage of any future sales they make.
So here's a few examples of MLM businesses; Quick and easy to get set up, Can start straight away if you like, if you join near the top of the MLM business line you can stand to make a lot of money by building a large downline and earning lots of commissions.
However there are Disadvantages of MLM's: The methods are now becoming dated; this is because most MLM models encourage you to sell to your friends and family. They also involve cold calling which is where you ring up people and tell them about your product or from a list of people you can buy that have bought similar products in the past or have been used by other people in the MLM. If you join near the bottom of the line you don't stand to make much money as the market has already been saturated by the people in your upline People with more advanced online and offline marketing techniques will do better than you Most MLM's are pyramid schemes (which are illegal) in disguise
So in my opinion MLM's are out dated nowadays as the marketing techniques have been around for years and more modern business models take so many sales away from MLM businesses. Nearly all MLM's do not teach you how to market their product instead you have to pay additional for education in marketing
Now there of course there are people making money from MLM's and I'm not by any means trying to say they cannot make you money, but there is a very high failure rate as there's a lack of training and support!
One of the main reasons people choose to make money online is to have free time but at the beginning you will spend most of your time on the phone selling your product and most people will not buy from you which leads to you getting disheartened and is the main reason people give up!
However if you have got your mind set on joining an MLM make sure you join near the top of a line and that there will be the support and training you require!
About the Author:
This article came from the laptop of Jonathan Pitts. Jonathan is a very experienced Internet Marketer who has had a lot of success in this Industry! He now trains others so they can become successful entrepreneurs too! Fed up of the Smoke in this Industry he has produced a Truth Report to give the TRUTH on how to Make Money Online! He could be charging $100's for this but has decided to give it away for free!
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