How To Choose A Good Online MLM Or Network Marketing Program?

Written by EvelynLim

You've heard many horror stories about MLM /network marketing programs. But what you are really hearing about are stories relating to illegal programs or pyramid schemes. Basically, pyramid schemes have no real, viable and worthy product. Obviously, you do not want to participate in such schemes. You want to be associated with a high quality product that you will readily endorse.

Why participate in a MLM or network marketing company then? The lure of joining a MLM has great appeal: It allows you to work part-time, gives you an opportunity to build residual income and you become a small business owner. MLMs have created many millionaires. Those who are successful testify that it is a result of hard work, continuous prospecting, motivating and training others.

The concept of MLM is simple. Instead of paying huge advertising sales and marketing costs to promote their products, MLM companies convert their loyal customers into a huge sales force. They rely on word-of-mouth to dorepparttar marketing. The commission fromrepparttar 136463 savings on employing sales staff, advertisement and promotions is paid to you instead. It is a win-win situation for bothrepparttar 136464 company andrepparttar 136465 MLMer.

If you decide to join one, please note that many MLMs require an initial investment. Before making such an investment, here are 10 tips on how to choose a good MLM program to promote:

1. Choose a program that you like or have some interest in. The best way to know if this is a program you wish to promote is whether you are interested in purchasingrepparttar 136466 product for your own use. If so, chances will be that there will be others who will be interested inrepparttar 136467 same program.

2. Look for a program that is of high quality. For instance, choose one that is associated with a top expert or many experts inrepparttar 136468 particular industry.

3. Participate in ones that offer real, viable products.

Affiliate Marketing Versus Network Marketing (MLM): Income Formula Revealed!

Written by Evelyn

Both affiliate marketing and network marketing pay people for referring a product or service. What then isrepparttar difference between affiliate marketing and network marketing?

The difference is best explained in terms ofrepparttar 136462 way compensation is structured to pay for performance. Because ofrepparttar 136463 many hybrid forms of compensation payments available now onrepparttar 136464 internet, to a newbie scouting for business opportunities, it is easy to get confused overrepparttar 136465 many terms and definitions used. In evaluating compensation plans, it is essential to understandrepparttar 136466 subtle difference betweenrepparttar 136467 two models. Ultimately, you want to understand…which model yields more income?

What is affiliate marketing? Affiliate marketing is usually done online. In its simplest form, affiliate marketers are compensated on a one time transaction only. Unlike products offered in a MLM business, affiliate products are often ones that a customer would only need to purchase one time. Thus,repparttar 136468 morerepparttar 136469 affiliate marketer sell,repparttar 136470 more they make. This is quite akin to direct sales albeit made viarepparttar 136471 internet.

Affiliate marketing has a compensation plan based on performance measures. For instance, ifrepparttar 136472 affiliate marketer is successful inrepparttar 136473 form of sales, clicks, registrations, etc, he/she gets rewarded. The desired action as a means of compensation is already pre-agreed upon byrepparttar 136474 affiliate merchant and him/her.

In a short space of time,repparttar 136475 affiliate marketing model has also evolved to a 2 level (or in some cases, up to 5 levels) compensation plan. Inrepparttar 136476 popular 2-tier version, for instance, you (as an affiliate of a particular e-book merchant) will earn commission when you sell a book to person A and if person A signs up to be an affiliate and manages to sell to person A1, you get compensated too, in addition to person A.

Let’s now go on to talk about what network marketing is. Inrepparttar 136477 network marketing model,repparttar 136478 compensation plan works in a similar fashion, except that compensation byrepparttar 136479 sponsoring company can be paid up to several, several or unlimited levels. The number of levels and restrictions in terms of payout is very much dependent onrepparttar 136480 arrangement offered. As arrangements can vary from one company torepparttar 136481 next, this makes comparisons ofrepparttar 136482 various compensation plans available out there difficult. So be sure to read allrepparttar 136483 fine print!

At any level, a network marketer hasrepparttar 136484 potential to earn a direct referral fee for directly recommending someone and a leverage fee when one of his/her “downlines” is successful for referring friends torepparttar 136485 same network. Inrepparttar 136486 popular binary plan adopted by many network marketing companies, each person inrepparttar 136487 network has two “legs” or “downlines”. If more people get referred torepparttar 136488 network, they automatically go belowrepparttar 136489 “legs”.

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