What is MLM ? (Multi Level Marketing)

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What is MLM... And What Does It Stand For?

If only I had a nickel for everytime someone asked me "What Is MLM"

This has to be the most commonly asked question I get almost everyday by people looking to start their own online business

MLM is simply an acronym for multi level marketing. Sometimes referred to as network marketing or viral marketing, MLM is the process of sharing information and recommending things we value.

Can you remember the last time you recommend and gave your opinion on a product to a friend?

A digital camera, laptop or perhaps a ipod or music cd. Whatever it was, you express your opinion because of the value you gotten over using it.
The value you received outweighed the costs and you felt someone else could benefit right?

Well, Professional Network Marketer’s simply get paid for it...

...and that is what makes MLM so attractive.

Multi Level Marketing is a industry that is based on building relationships- trust between a consumer and distributor.

So what is MLM? - Its the process of communicating with other people about valuable products and services.

Is MLM a Pyramid Scheme?

The Business Model

Now let's cover the basic elements that make it work.

The Multi Level Marketing model is comprised of three key components.

The company
The product
The distributor

It begins with a company selling a product or service.

Instead of directly promoting the product themselves, the company decides to hire independent representatives also known as distributors to sell and promote the product’s directly to the consumer.

So why do this? Why not sell the product themselves?

MLM companies acquire distributors to eliminate advertising and other related business costs allowing more room for profit.

This allows greater savings for the consumer -more profit for distributors and the MLM Company.

A win-win -win situation is created for all parties.

Reps are not only given an opportunity to sell the service or product directly to consumers for profit but they’re also granted the chance to sponsor their own distributors creating what is known as a downline.

A downline also known as a sales organization is composed of two or more legs (mutli-level) of sponsored distributors.

The Advantages Of MLM Are Many

Some include...

Low Risk With High Financial Returns
Becoming Your Own Boss
Extra / Residual Income
No Previous Expierence Required
Part Time / Full Time

I Heard MLM Is Expensive To Join

"Many famous franchises cost a million dollars or more to buy. Network marketing is a like buying a personal franchise, often for less than $300."

-- Robert Kiyosaki - Rich Dad Poor Dad--

It is also important to be aware of the costs associated with any multi level marketing company.

There will be initial and long-term investments (fees) you must commit to.

Fees will range from company to company. Some MLM's charge $100- $300 to get started while others charge $500 - $1000+

Choosing Your MLM Business

One of the most important things you need to consider before investing time and money in any multi level marketing company is the business itself.

Do your homework.

The last thing you want to do is spend several hundred dollars into a company that’s simply taking your money.

There are literally thousands of MLM opportunities out there. Take some time and do some research.

A good place to start is with NPROS.com and DSA.org

These sites provide valuable information on what is mlm.

Be sure to always check with your local better business bureau to see if there’s any complaints filed with the company and to see how it was handled.

In MLM it all about repeat sales. Your product or opportunity must give true value and benefits to consumers.

Products and services that fall into this category are ones that are consumable- ones that are in demand.

The point is to choose a product that you know people will buy from you month after month.

Again, inorder to achieve this is to provide products or service that truly gives value.

Its always easier to sell something that’s a “need” versus a “want”.

If you happen to choose the wrong company that promotes a bad product, you’re going to have trouble moving that item and selling it.

Your prsopects will also want to know how they can benefit as well. Make sure your company can deliver that.

That's why its imperative you do all the research you can on a specific company before you decide to invest your time, energy and money on an opportunity.

In the end it will be ultimately up to you and what you feel comfortable promoting.

If you're ready to move, let continue with some MLM Training.

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