The Perks of Multi-Level Marketing

Any new enterprise needs a boost in its early days. This can come from a great marketing plan, or even extra finances via investors. However, there is one strategy that many companies have been employing for a while now – the multi-level marketing system.

 

If you own a certain brand of plastic ware which specializes in its lifetime guarantee of airtight boxes as well as ergonomic, stackable design, then you know what we are referring to. This company has used multi-level marketing successfully and continues to thrive!

 

What is multi-level marketing?

 

 

As the name suggests, multi-level marketing (MLM) is a kind of marketing tool. Simply put, it works like a pyramid. You, the first marketer, will market the products to other people directly (rather than through retail stores).

Once you make  your sales, you will find interested parties who are keen on marketing this product, and you recruit them, teach them about the company and its products, and they will continue recruiting more marketers and so on.

Diagrammatically, this model can be represented as a pyramid (however, MLM is very different from a pyramid scheme which is exploitative).

The whole premise of MLM is that the more people you are able to recruit the more monetary benefits you accrue. A lot of people are wary of MLM, but this is very different from a pyramid or even ponzi scheme.

An MLM system sells products, via marketers/distributors, directly to the consumer. This is the reason why MLM is such a successful way to do business for direct sales companies. The goal is to reach the consumer and the MLM method of doing so ensures that the product reaches consumers. There is a lot of controversy surrounding this business practice, and researchers have found that very few companies engage in legitimate MLM practices.

Generating leads in an MLM scheme

 

Not everyone has a great network that they can tap into. They do need to look around for distributors and investors in their company to make the MLM scheme a success. This can be quite a time-consuming process and it can be very demoralizing for a new distributor.

 

Sales targets are important no matter how you distribute your products. The internet has, however, created a solution for this little snag through means of an online training program called MLSP or My Lead System Pro. If you want to know more about MLSP, check the MLSP review here for more details on this program and what it can do for you.


If  MLSP isn’t your cup of tea, then, you have an alternative – and that is to generate the leads yourselves. This can be a bit of work, but it can be highly satisfying at the end of the day. The opportunity to interact with people in real-time and to get their feedback offers you a big learning opportunity and it can also help you get better at what you do, learn on the go rather than have someone take care of this stuff for you.

 

Final thoughts on MLM

 

MLM when done right is an accepted and legitimate business practice which can prove hugely beneficial to you and your recruits if you aren’t avaricious. Take care to do things organically and make sure that you are selling to the consumer directly.

 

A consumer who buys in bulk might be someone who will re-distribute your products for a higher margin and this will in turn compromise the reputation of your company and yours as well. If you work for a direct sales organization that employs MLM, take care of the little nuances and ensure that the best and most transparent business practices are carried out under your care.

 

  • How is a pyramid scheme different?
    By far, the most notorious business scheme currently is the pyramid scheme. Analysts and industry experts have been clamping down on companies which engage in this practice with a lot of success. However, there are some people who still manage to avoid the scanner by placing smokescreens on the way in which they do business. Unlike MLM, a pyramid scheme operates from the bottom up. A company, or an individual recruits new investors/distributors with great offers and deals. In the initial days of this scheme, you make a lot of money leading you to believe that this scheme is a success. However, the money being made by the new recruits and there is no real return on investment. There comes a time in a pyramid scheme when a company’s liability far exceeds its assets and this is when the whole thing begins to fall apart.

  • How is a pyramid scheme different?
    By far, the most notorious business scheme currently is the pyramid scheme. Analysts and industry experts have been clamping down on companies which engage in this practice with a lot of success. However, there are some people who still manage to avoid the scanner by placing smokescreens on the way in which they do business. Unlike MLM, a pyramid scheme operates from the bottom up. A company, or an individual recruits new investors/distributors with great offers and deals. In the initial days of this scheme, you make a lot of money leading you to believe that this scheme is a success. However, the money being made by the new recruits and there is no real return on investment. There comes a time in a pyramid scheme when a company's liability far exceeds its assets and this is when the whole thing begins to fall apart.

  • How is a pyramid scheme different?
    By far, the most notorious business scheme currently is the pyramid scheme. Analysts and industry experts have been clamping down on companies which engage in this practice with a lot of success. However, there are some people who still manage to avoid the scanner by placing smokescreens on the way in which they do business. Unlike MLM, a pyramid scheme operates from the bottom up. A company, or an individual recruits new investors/distributors with great offers and deals. In the initial days of this scheme, you make a lot of money leading you to believe that this scheme is a success. However, the money being made by the new recruits and there is no real return on investment. There comes a time in a pyramid scheme when a company's liability far exceeds its assets and this is when the whole thing begins to fall apart.

  • How is a pyramid scheme different?
    By far, the most notorious business scheme currently is the pyramid scheme. Analysts and industry experts have been clamping down on companies which engage in this practice with a lot of success. However, there are some people who still manage to avoid the scanner by placing smokescreens on the way in which they do business. Unlike MLM, a pyramid scheme operates from the bottom up. A company, or an individual recruits new investors/distributors with great offers and deals. In the initial days of this scheme, you make a lot of money leading you to believe that this scheme is a success. However, the money being made by the new recruits and there is no real return on investment. There comes a time in a pyramid scheme when a company's liability far exceeds its assets and this is when the whole thing begins to fall apart.

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