What is Multi Level Marketing?
Multi level marketing (MLM) is a structure designed to create a marketing and sales force to distribute products and generate income for its distributors.
Multi level marketing is also commonly called network marketing.
The salespeople (also known as distributors, consultants, associates, representatives, etc.) in multi level marketing are considered to be self employed and the compensation that they earn is based on a percentage of their sales and the sales of distributors that they personally recruit.
The "multi level" comes in because distributors also earn royalties on the sales of the people who were brought into the organization by their recruits. The compensation plan sets out the earnings from each level.
The Benefits of Multi Level Marketing
Network marketing opportunities are promoted by announcing benefits such as financial freedom - unlimited income, residual income – and that network marketers have control over their own time management and so forth.If you find one of the top network marketing companies that actually reflect your passion, it is possible to become financially independent using a MLM program.
The Problem I Have With Most Network Marketing Opportunities
Most multi level marketing programs promote products that are fairly low priced. As a distributor, your compensation may be 20 – 40% of your sales but in order to make significant money, your sales volume has to be very high.The second part of income comes from your down line – people that you recruit to be distributors. This is where most of the money comes from for network marketers. The thing that bothers me about that is, you basically have no control over your recruits. If they start dropping out like flies, there is a possibly that the income that you depend on can become history.
In an economic crisis people quit buying the type of products that are featured in most MLM programs. Sales fall, recruits drop out and your income trickles away leaving you at square one.
Personally, I am not willing to take that risk. I want to put my time and money into building an empire where most of income comes from my own efforts (a huge chunk at a time) and the income rises during economic turmoil. My residual income comes from my personal investments. This is what I teach through my personal development business.
If you agree with my logic about network marketing opportunities, it will be beneficial for you to contact me to find out more about the opportunities that await you.
Return Home from Multi Level Marketing
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