Multi level marketing, or MLM as it is know is way to deliver products by utilizing the power of people. These products and services are usually not sold through regular stores, but from individual homes of the sellers.
Multi level marketing sounds like a pyramid scheme
MLM sounds like a pyramid or Ponzi scheme, but it is not, far from it. Those who get involved with this type of marketing can typically make a lot of money based on two factors. The first being their ability to work hard, and the second being their ability to stay connected, nurture and motivate their downline or distributors.
MLM: the basics, commissions and relationships
The way income is earned is like this example: John joins a company offering people a great product. He gets involved with them, starts earning commissions and begins to enjoy a better financial outlook for his life.
Recruitment and mentorship
His neighbor Bob sees how well John is doing and he wants in on the action, too. John takes Bob under his umbrella of mentorship, teaching him how to be successful selling the product. Because of John’s tutelage, Bob also beings to earn money. A certain percentage of what he sells is then given to John in the form of a commission.
Building a distribution network organically
Bob then shares his story of making money with his family and friends. Three of them sign up. Now Bob is making commission based on what they sell. Meanwhile, John is still making commission on what Bob sells but now, he’s also earning on what Bob’s downline sells.
So each tier or level will grow – depending on the amount of distributors who also desire to sell the product. The more levels you have working below you, the more money you’ll earn.
Multi level marketing involves putting in the work and making sales
In MLM, the income level has the potential to reach great heights – but only if it’s properly worked. Those who sit around and do nothing to promote the product or the opportunity usually don’t fare well.
The reward is in the commissions from sales of the distribution network
There’s no lazy way to success in any business and this one is no different. How much money you can earn through this type of selling structure will also depend on how the company has set up their commission scale – plus the percentage of commission made from your downline.
Remember this if you are looking at an MLM network
Since the rate of potential commission can vary from opportunity to opportunity, you’ll want to check out the company and the success of others who are already promoting the products to make sure it’s the right MLM company for you. Any company that promises you’ll get rich overnight or that you’ll get rich without having to lift a finger is a company you should avoid getting involved with.
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