MLM (Multi-Level Marketing), also known as Network Marketing, is by no means confined to the online world; in fact it has its roots long before the internet. Some very large and successful companies were built on, and continue to thrive, based on a MLM network model. The way it basically works is this: a company sells products or services through a vast network of independent distributors that sell at retail prices. The distributor usually pays some sort of joining fee or has to buy a certain quantity of the product to gain distributorship status. All MLM network marketing companies work with a solid business foundation. A parent company has a product or service to offer its customers. The networker’s responsibility is two-fold; to find other customers to buy the product and recruitment of new distributors.
Additionally, the network urges distributors to bring in other people to act in the same capacity. The referring distributor then earns commissions on the products that the referred distributor sells. If the distributor they referred also brings in other distributors, the original distributor also receives commissions on those sales and so on. This is the "Multi Level" component. For most people wanting to get into these kinds of businesses, the attraction isn't so much in selling the companies products; it's the conversion of buyers to distributors.
If a person is considering an MLM network opportunity, the following questions need to be asked:
1) Who is your upline? This question goes all the way to the top of the network. Investigate the entire upline just like you would a business partner you'd never met before.
2) What is the product? Become an expert on the product and/or service that’s being offered to clients. Know the competition as well.
3) When will you start actually making money? Don't fall for the line that it takes months or even years to show a profit. You should be able to recoup any investment and start earning income within just a few weeks if there's really demand for the product. Making a living at it is another story.
4) Product promotion? What restrictions are there on where and how the product can be promoted (advertising, web sites, etc.)? There's not a right or wrong answer to this question: an open policy is a more flexible situation.
5) What was the recruitment method? As a customer, with just a mention of a possible income opportunity, or was it a primary pitch about the business opportunity.
6) Why pursue this MLM network opportunity? This is perhaps the most important question of all. Don’t focus on the short-term earnings; the potential marketer should concentrate on the long-term goal.
Essentially, there are no right and wrong answers to these questions concerning a MLM network opportunity. The point is to make sure that everything is known and on the table. Many people have made a lot of money in MLM networks, but many more have ended up wasting a whole lot of time and money chasing a false dream.
Together we shall win,
Adesegun Akitoye
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