What Is MLM?

MLM stands for Multi Level Marketing and is also known as Network Marketing or Referral Marketing. A company is considered MLM where the products or services delivered to their customers, are distributed by independent contractors also known as distributors. This is the major point of difference between MLM and conventional systems. Instead of a complex system of wholesalers, warehouses, distribution centers, freight companies and retailers – with all the added costs at each point of handling – MLM companies normally deliver direct to either the distributor or the customer. The savings in infrastructure, multiple handling, storage and transport are huge. These distributors are compensated based on their own sales as well as the sales of other distributors they have recruited and trained. The terms “multi level” and “network” come from this concept of recruiting and training a huge group of distributors (also known as a downline) as your own sales force within this company.

The idea, of course, is to build a huge downline that will amass a large customer base. Obviously, the person who has the most customers in his/her network is compensated the best. Most MLM companies do very little advertising in comparison to more conventional companies, since word of mouth referral is the primary promotional medium. This represents enormous savings, which are normally channeled into network rewards. Compensation plans very from company to company but if you build your downline the right way you can reap a huge financial reward.

Most of us do a little network marketing every day. The difference is that we don’t really know that’s what we’re doing and we’re not actually getting paid for it. Let’s say you saw a great movie and recommended it to all your friends, you are doing network marketing for the theater and the film company that produced the movie.

The same goes for a favorite restaurant; article of clothing, favorite album or a good book you just read. Herein lies the difference between network marketing and multi-level marketing. Network marketing does not have to be multi-level nor does it have to include building a downline.

The problem in network marketing arises when people focus solely on recruiting recruiters and training them to recruit. Neglecting to acquire customers and to train your downline to do the same results in no compensation. Legitimate MLM companies only payout when customers are acquired not when a downline distributor is acquired. A lot of the negativity towards network marketing arises because of lack of understanding of this one issue.

To your success!

Steve

Oh, That’s One of Those MLM Pyramid Things…

I find it interesting the varied responses you get when you mention network marketing, mlm or multi level marketing to others.

Some people just look at you with a blank stare never having heard of these terms before. Others ask, “Is this one of those businesses like Amway?” or “How much do you get paid off of me?”. What about the infamous line “Oh, that’s one of those pyramid things!”. Others will be curious to find out more even if they have already been involved in MLM. They will just say “Tell me more about it…”

My favorite group is the kind of people who immediately tell you its a scam because they have joined one before and failed. Even worse, they just heard about this concept from someone else who failed and so they assume its a scam without any first-hand experience.

Don’t Judge Too Quickly

The funny Ameriquest Mortgage Commercials are kind of like some people’s first impression of network marketing. Get the facts from someone that is successful in the industry and remember, don’t judge too quickly.

Ever since Amway and other pioneering companies, people have been exposed to multilevel marketing either directly or indirectly and have been forming opinions about it. Network Marketing is not for everyone and by no means will everyone succeed just like in any other business. All I can ask of you, is to at least get the facts before you form a concrete opinion about any multilevel marketing company and/or the MLM industry as a whole. Use caution and don’t ever jump in blindly; you still need to make sure it is a legitimate company, but please don’t form opinions before you do the research.

Multilevel marketing is neither good nor bad. Unfortunately, people label it one way or the other depending on whether or not they made money, while understandable, is not very rational.

Enjoy,
Steve

Are You Guilty Of Telling These 7 Lies Of Network Marketing?

If you are one of the 95 plus per cent of network marketers who are still spinning their wheels in this industry and not making any money then there is very good reason.

Let’s remove lack of action for a moment because undoubtedly this will account for many failures within the network marketing business. But the truth is, there are seven prime reasons why today’s network marketers simply cannot get off the starting blocks with their businesses.

Ann Sieg was a struggling MLMer for many years who did everything right in promoting her business. She made a list, attended meetings and poured her heart and soul into trying to grow her business. She was moderately successful but always hit a point in her growth where the large brick wall placed in front of her just couldn’t be scaled.

Her main problem, one which is the core reason why many MLMers quit their business within the first three months, was attracting enough prospects into their funnel. She had plenty of belief but couldn’t understand why she wasn’t seeing the results in proportion to her efforts. Yet, she kept being told that perhaps her belief levels weren’t strong enough or to attend more meetings or that everyone is a prospect.

The fact is, every one is not a prospect in network marketing. Sieg was finally fed up with the industry and decided to find out why it was some people were successful and the majority weren’t. You know what she discovered?

The 7 Great Lies Of Network Marketing

Bottom line is, just about everything you’ve been taught about network marketing, to quote a passage from her report…”is BS.”

Sieg set about compiling her report, The 7 Great Lies Of Network Marketing and knew deep down she was going to offend some people. Let’s face it, despite more than 95% of people failing in MLM, there is still a propensity to get defensive when someone starts to belittle the industry.

Fact is, Sieg doesn’t belittle the industry. She recognizes it as one of the truly great vehicles for the average citizen worldwide to create financial security for themselves.

What she does attack are the tired old mis-truths still being taught today in droves on unsuspecting new network marketers about what’s required to build a successful MLM business. How’s this for some familiar stuff:

- anyone can do this business
- every one is a prospect from your family, relatives, friends and strangers
- you don’t need any skills other than being able to make a list or
- you’ll have your business built for you

Do they sound familiar to you? Truth is, anyone can do this business but only with the right skill set. And those skills should be taught even before they join the business. Most people who join a network marketing business don’t have skills such as marketing and promotion and to some extent sales.

And possibly one of the most irritating of The 7 Great Lies Of Network Marketing is being told one needs more self belief and belief in the business. Well, that’s true but how does that get you the fuel to build your business, namely prospects.

The Renegade Revolution

There is a shift happening with regards to promoting network marketing today and we are on the verge of a new boom within the industry. The 7 Great Lies Of Network Marketing may have hit a nerve or two but now that the dust is settling, the growing numbers of renegade network marketers who continue to emerge every day is strong testimony to the message conveyed within the report.

The 7 Great Lies is a free report which you can download here. If you are set in your ways and still believe making a list and hassling friends and family is the way to prospect then don’t download the report. It will offend you. However, like the majority of network marketers, if you’re looking for a lifeline to pluck you out of the MLM sea of despair, then the 7 Great Lies is for you.