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08:21
By Joe Burke


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 actually a way of retailing via a distribution channel comprising independent distributors and business owners. The model has been around for more than a century and it operates really effectively. It gives an excellent opportunity for people to start their very own business and frequently with a small capital investment.

You'll be able to usually begin in network marketing by investing only several hundred dollars, with a start up kit and handful of products. Getting a franchise, alternatively, could cost you hundreds of thousands of dollars and also more than a million dollars in some instances. Plus, with a franchise, you are usually limited to operating your business a certain way, within a particular place and pay a monthly franchisor 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's Multi-Level Marketing? - It is a Leveraged Revenue Model

When I read or hear that multilevel marketing is a scam, I've to shake my head. For any business to exist in retail, products need to be sold. Multilevel marketing is about selling product.

So how do you move product? You can find two techniques. It is possible to personally seek out buyers, offer your products for sale and pocket a commission for each and every sale. This really is what's called direct selling. Which can be fine, it is possible to earn a couple of hundred to a couple of thousand dollars per month as a salesperson. However, you also have the opportunity to recruit people to join your network of distributors and get paid a small commission on the products they sell and this is where all the big money that is extremely leveraged revenue comes into play.

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 my answer to the question what exactly is multilevel marketing, it's a wonderful way of earning a substantial income and a wonderful way of life.




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