Multilevel Marketing and the Way it Works
Also known as MLM, the Network Marketing process is one that is embraced by so many businesses these days.
It is a model that has been around for decades now and it is growing exponentially with the presence of the Internet.
But a lot of people have the misconception that it is just a scam and that it is a business that does not work.
There are also others that believe it is a business that will reap instant success once you tap into its full potential.
In both areas, this can be true.
But a clear definition of the Network Marketing process is required to fully understand it.
The first thing that you should know is that an MLM is one that is set up by a parent company.
You can be that parent company if you are big enough and have enough products to sell.
But usually, it is set up by huge companies that are known to be large manufacturers of different products.
Now, the only responsibility of the parent company is to actually make all these products and services that they want to sell.
They also provide all the support that is needed for the product.
The difference between these people and regular businesses is the way they advertise and sell the products.
You will notice that the regular thing to do with most companies is to advertise their products through radio ads, billboards, magazine ads, newspaper installments, etc.
This entices people to actually go to stores and then buy the products that were advertised in those ads.
Network Marketing companies work in a way that they don't have to spend so much money on advertising.
They get to people by using people.
These people that they recruit are known as representatives or their downline.
The downline goes to the people and sells them the product directly and this can be very effective in the sense that people don't have to get up and go to the stores themselves.
They can just buy the product directly fro the reps.
Now, these representatives are not hired by the parent company.
They actually pay to get into the program because they are paid commissions for selling the products of that company.
The commission rate varies from company to company which is why people will try out with different MLM programs until they find one that is suitable for them.
They are not tied down by contract.
The goal of the independent reps is to recruit more reps and to sell the products and services of the parent company.
This way, they can make a commission for themselves and also make a commission from the downline sales.
This is a really simple concept.
It is because of this simple concept that people have mistaken the Network Marketing process for pyramid schemes.
Pyramid schemes have a similar process but there are no commissions, trainings, preparing, or value in the people that are part of the pyramid.
People only end up using people to make money through recruitment and this is the main difference from pyramid schemes and MLM companies.
Make Sure that you go down below and get the top kept secrets to MLM marketing online from one of the top earners in the business.
It is a model that has been around for decades now and it is growing exponentially with the presence of the Internet.
But a lot of people have the misconception that it is just a scam and that it is a business that does not work.
There are also others that believe it is a business that will reap instant success once you tap into its full potential.
In both areas, this can be true.
But a clear definition of the Network Marketing process is required to fully understand it.
The first thing that you should know is that an MLM is one that is set up by a parent company.
You can be that parent company if you are big enough and have enough products to sell.
But usually, it is set up by huge companies that are known to be large manufacturers of different products.
Now, the only responsibility of the parent company is to actually make all these products and services that they want to sell.
They also provide all the support that is needed for the product.
The difference between these people and regular businesses is the way they advertise and sell the products.
You will notice that the regular thing to do with most companies is to advertise their products through radio ads, billboards, magazine ads, newspaper installments, etc.
This entices people to actually go to stores and then buy the products that were advertised in those ads.
Network Marketing companies work in a way that they don't have to spend so much money on advertising.
They get to people by using people.
These people that they recruit are known as representatives or their downline.
The downline goes to the people and sells them the product directly and this can be very effective in the sense that people don't have to get up and go to the stores themselves.
They can just buy the product directly fro the reps.
Now, these representatives are not hired by the parent company.
They actually pay to get into the program because they are paid commissions for selling the products of that company.
The commission rate varies from company to company which is why people will try out with different MLM programs until they find one that is suitable for them.
They are not tied down by contract.
The goal of the independent reps is to recruit more reps and to sell the products and services of the parent company.
This way, they can make a commission for themselves and also make a commission from the downline sales.
This is a really simple concept.
It is because of this simple concept that people have mistaken the Network Marketing process for pyramid schemes.
Pyramid schemes have a similar process but there are no commissions, trainings, preparing, or value in the people that are part of the pyramid.
People only end up using people to make money through recruitment and this is the main difference from pyramid schemes and MLM companies.
Make Sure that you go down below and get the top kept secrets to MLM marketing online from one of the top earners in the business.
