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 a way of selling products by using independent distributors and business owners. The model has been around for over a century and it works extremely well. It delivers a superb opportunity for people to start their very own business and usually 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 spending as small as $50 or as significantly as $2,500 to get started having a solid network marketing business that provides exactly the same revenue potential and you start to see the difference quickly. Plus, given that your upfront investment is less, so will be the downside risk.
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
When I read or hear that multilevel marketing can be a scam, I had to shake my head. For any business to exist in retail, products need to be sold. Multilevel marketing is about selling products.
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.
The top MLM companies also supply incentives, so if I can sell X, Y or Z amounts of products inside a month, by means of my network of distributors I can earn a substantial bonuses.
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 a way of selling products by using independent distributors and business owners. The model has been around for over a century and it works extremely well. It delivers a superb opportunity for people to start their very own business and usually 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 spending as small as $50 or as significantly as $2,500 to get started having a solid network marketing business that provides exactly the same revenue potential and you start to see the difference quickly. Plus, given that your upfront investment is less, so will be the downside risk.
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
When I read or hear that multilevel marketing can be a scam, I had to shake my head. For any business to exist in retail, products need to be sold. Multilevel marketing is about selling products.
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.
The top MLM companies also supply incentives, so if I can sell X, Y or Z amounts of products inside a month, by means of my network of distributors I can earn a substantial bonuses.
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.multi level marketing companies, andmlm scams
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