Idea Behind MLM

Written by syedwaqarali


The idea behind multi-level marketing (MLM) is simple. Imagine you have a product to sell. MLM schemes require that you recruit people not only to buy and sell your product, but who will also recruit people who will not only buy and sell your product but also recruit people....ad infinitum. This may seem unusual to traditional business people. Why, you might wonder would you recruit people to compete with you? For, isn't that what you are doing when you recruit people to sellrepparttar same products you are selling? MLM magic will convince you that it is reasonable to recruit competitors because they won't really be competitors since you will get a cut of their profits. This will take your mind offrepparttar 122516 fact that no matter how big your town or market, it is finite. Multi-level marketing is a system of marketing which puts more emphasis uponrepparttar 122517 recruiting of distributors than onrepparttar 122518 selling of products. MLM is very attractive, however, because it sells hope and appears to be outsiderepparttar 122519 mainstream of business as usual. It promises wealth and independence to all.

What is Network Marketing?

Written by Kevin Quigley


You have permission to publish this article electronically or in print, free of charge, as long asrepparttar bylines are included. A courtesy copy of your publication would be appreciated.

What Is Network Marketing?

By Kevin Quigley.

To begin with,repparttar 122515 concept behind network marketing is simple. Sharing - through product or business philosophy - isrepparttar 122516 basis of network marketing.

Network marketing is a multi-billion pound industry involving millions of independent business people aroundrepparttar 122517 globe. Large companies like Gillette, Colgate-Palmolive, Kleeneze Europe, AT&T and others, have all turned to network marketing because ofrepparttar 122518 very real edge it gives them in both domestic and international marketing.

Network marketing is a 'BIG' small business, which offers everyone, with or without business experience,repparttar 122519 opportunity to start and run a home-based business that works. It isrepparttar 122520 last frontier where 'the little guy', (people like you and me) can make it BIG.

NETWORK MARKETING Vs TRADITIONAL MARKETING

The traditional way of marketing products is to move them from a manufacturer through a network of middlemen. National Wholesalers, regional wholesalers, Cash & Carry warehouses, retailers, -repparttar 122521 'middlemen' - all add their 'valueless' percentage torepparttar 122522 price ofrepparttar 122523 product.

Byrepparttar 122524 timerepparttar 122525 product reaches yourepparttar 122526 end user, you're not only paying forrepparttar 122527 product, but a percentage ofrepparttar 122528 price for each and every middleman inrepparttar 122529 network.

In network marketing there are no middlemen. Instead of paying them, a network marketing company will pay you for whatever amount of product you cause to be 'moved'.

As a sole individual operating alone,repparttar 122530 amount of product you could 'move' from your own efforts, would be relatively small. In network marketing however,repparttar 122531 amount you 'caused' to be moved indirectly could be huge.

Here then isrepparttar 122532 essence of a network marketing compensation plan. For not only will you be compensated forrepparttar 122533 product you personally cause to be moved from your own direct efforts, you will also receive indirect compensation for product that your 'organisation' 'causes' to be moved.

YOUR 'ORGANISATION'

To be successful in network marketing you will need to build an 'organisation'. That is to say you will need to 'share' repparttar 122534 benefits of bothrepparttar 122535 products andrepparttar 122536 business opportunity with others. In network marketing this is referred to as your 'downline'.

The 'serious' money to be had in network marketing is to be had from what is termed as 'over-ride' commissions fromrepparttar 122537 'movement' of product fromrepparttar 122538 'downline' your 'sponsor' will help you to build.(In network marketing it isrepparttar 122539 responsibility of your introducing 'sponsor' to help you build your 'downline'.)

All you need to do initially to build a 'downline' is to 'share' with othersrepparttar 122540 information aboutrepparttar 122541 products and repparttar 122542 business opportunity.

Theoretically, if after 'sharing'repparttar 122543 information with others and you subsequently attracted just five like-minded individuals who decided to join you in your network marketing business - for illustration purposes only - your 'downline' could equate torepparttar 122544 following after five levels of geometric growth:

You

You sponsor just 5 people into your business.

Your level 1/ 5

They duplicate your efforts and each sponsor 5 people.

Your level 2/ 25

These 16 duplicate your efforts and each sponsor 5 people.

Your level 3/ 125

These 125 duplicate your efforts and each sponsor 5 people.

A little arithmetic will tell you that's theoretically a total of 3,906 people on your fifth level.

AN UNLIMITED INCOME POTENTIAL

Imaginerepparttar 122545 power of a business-building plan that would pay you an agreed 'over-ride' commission on each and every product 'moved' by each and every one of those 3,906 potential distributors in your downline. Network marketing then is about a LOT of people 'moving' a little product. The more people you introduce,repparttar 122546 greater your income potential.

If you want to toss asiderepparttar 122547 potential earnings on offer as being ridiculous or impossible - DON'T. I personally have met people who are earning 5,000 to 50,000 per month (yes per month) from network marketing for part-time effort. Thoughrepparttar 122548 majority of networkers earn hundreds rather than many thousands per month, (most working part-time) it must be understood then that if you are to make serious income, you must put in serious effort. No free lunches here!

SO HOW DO YOU CONVINCE PEOPLE TO JOIN YOUR BUSINESS?

The simple answer is you don't. You want those who convince themselves. If they are truly looking for a way to become successful, then they'll come to you to go after it. The key to achieving success in network marketing is not to be had by convincing people, but by helping those people who want to become successful themselves.

WHERE DO I FIND PEOPLE TO JOIN ME IN MY BUSINESS

As it has been estimated that 20% ofrepparttar 122549 working population - that's approximately 6 million people - would be interested in starting their own business,repparttar 122550 marketplace inrepparttar 122551 UK alone is truly enormous. With a recent MORI poll indicating that 50% of 16 - 25 year olds were interested in starting their own business,repparttar 122552 marketplace is actually growing.

One ofrepparttar 122553 most important things to recognise is thatrepparttar 122554 most precious resource available to you is inrepparttar 122555 new blood -repparttar 122556 millions of business opportunity seekers who are not presently involved in networking. For it is there that you will find repparttar 122557 success stories of tomorrow for your downline organisation.

Cont'd on page 2 ==>
 
ImproveHomeLife.com © 2005
Terms of Use