What Is Multi Level Marketing?

 

One winter afternoon, a friend whom I worked with the summer before, called me and told me about this multi level marketing business he had started. Curious, I asked him what it was about, so he shared some information with me. It was a network marketing company that offered savings to it’s’ co-op members, traditional business owners, and families. Excited to find out what all the company entailed, I invited him over to our house to take a look at it. He showed my wife Heather and I a DVD which explained the company’s background and its’ services. Heather and I were very interested in what he had to say so we got some more information from other members about how the company had helped them and their families. After considering all the positive aspects about the company and its compensation plan, I joined shortly after meeting with him. Ever since then, I’ve really became fascinated with the multi level marketing industry.

 

What Is Multi Level Marketing? And How Can It Help You Make Extra Money?

 

Network marketing (also known as multi level marketing or MLM) is a direct sales business where representatives from certain companies, promote their companies’ products or services by word of mouth advertising. Distributors from companies rely on selling their products, and or recruiting others into the company and teaching them to do the same. This is known as “duplication” in the MLM industry. One great thing about network marketing is that it can be done it your spare time. For some people who still work a 9 to 5 job, they can easily schedule their time to work their business around their everyday busy schedule. It doesn’t matter if you’re male or female to take part in network marketing. The opportunity to make extra money is equal to both genders. There are hundreds of different companies who offer a wide spectrum of products or services. From beauty supplies, health drinks, or travel plans, there is something different for everyone to promote what best suits their interest.  Another perk about network marketing is there is no boss one has to answer to. There are no deadlines to meet, no long commutes, or no long hours at the office.

 

This is really great because you’re working for yourself, but not by yourself. There is usually a whole team of people in every company who help new reps when they are first starting out, and are there to continue helping when they are building their business. Network marketing can be very exciting and fun also because you get to meet fun and energetic people who will help you learn, grow and have success. Some companies also offer incentives for its reps to work harder to promote their company. These can be in the form of cash, cruises, or cars!

 

Compensation varies from company to company. Some companies strictly do commission only, while others offer pay plans that are called “matrixes”. A matrix pay plan is designed (depending on the size of the matrix) to have a certain amount of people either underneath you, above you, or beside you in the pay plan. For example, a pay plan could be a 3 x 14 matrix. When a person is placed (let’s use “Dave” and “Sue” for names) is placed in the matrix, there will be somebody on their left and right, (their “Dave and Sue”). Dave’s 3^rdperson and your 1^st person are one and the same. Likewise, your 3^rd person and Sues’ 1^stperson are one and the same. Typically, anyone can fill the position first. This pattern continues down 14 levels. Therefore, the title 3×14 matrix is given.  Binary plans have a left leg and a right leg business. When someone joins this type of pay plan, they are either placed on the left side or right side of their sponsors business. Binary plans usually have limitless depth, and are based on points. If a certain point is matched on both sides, compensation is made to the distributor for reaching those points.

 

One of the oldest and well-known multi level marketing companies is Avon, which was started in 1886 by founder David H. McConnell. As a traveling book salesman, he offered free perfume samples that he made to women to get in their door. He noticed they were more interested in the perfume than the books. He also noticed that most women were struggling financially as well. McConnell then offered his perfumes to women to start marketing his products.  The very first Avon lady he recruited was Mrs.P.F.E. Albee, of New Hampshire. Other well-known and successful companies are, Tupperware, Mary Kay, Amway, and Pampered Chef. A recent statistic shows that an estimated 600,000 people join the network marketing industry worldwide every year and for good reason. Whether to bring in extra income for job loss, retirement, or college, more and more people are starting some type of home based business.

 

 

Is Multi Level Marketing A Scam?

 

Now some might say that network marketing may be a “scam” or “pyramid scheme”. This couldn’t be farther from the truth. In actuality, corporate America can be looked as a pyramid. As children, most people were taught that they need to go to school and then graduate from college. Then they work a forty, or even sixty hour a week job for forty years for forty percent pay. Most people may end up working for a boss for the rest of their life, and not ever get ahead to become financially independent. Network marketing is based on sales. The more people you talk to about your business, the better results one can have. A distributor for a company depends solely on their people skills and attitude to build a successful home based business. However, those who don’t reach the level of success they want often talk down about network marketing and give it a bad name. These are the same people who continue with their everyday lives, stay at the same job (which they may even hate), and are often stuck in a rut living paycheck to paycheck. A recent article I read raised my interest.

(Fanale, 2010) “Ray Higdon had $300 in his bank account 14 month ago. He had been crushed by the Florida real estate market and really didn’t know what he was going to do. Through the power of the Internet and attraction marketing he has not only become an L4 in MLSP^®but also the #1 income earner in his primary company, winning 5 vacations and a $100,000 2011 BMW 7 series.”

“I had struggled in almost a dozen MLM’s, doing everything they told me to do but nothing really worked. With the training of MLSP^®and attraction marketing I have been able to recruit over 130 reps using the Internet and have become the #1 income earner in my company. The best part is my 130 reps have turned into over 3600 reps by teaching them a system that can be duplicated and tied to online prospecting.”~Ray Higdon Fort Myers, FL

 

If you’re currently looking for an MLM opportunity, or are curious to what I’m working on, you can click here to learn how to make money by selling gold and silver

 

 

Monte Eggers

MLM Marketing Coach

701-226-8182