What’s Multi Level Marketing?

What’s Multi Level Marketing?

Article by David M. Wood

Multi Level Marketing or MLM is simply a business model, but so much more. It’s a one of a kind business model that allows companies to distribute their product through a network of people. That’s the basic idea of Multi Level Marketing and if I had to sum it up in two lines, that’s what I would tell you. So what more is MLM?

Multi Level Marketing is a home based business. It’s one of the only industries that allows the average Joe to make a full time income from home. As it’s just a business model and simply a way to distribute a product. The distributors or reps as we say are compensated on their efforts.

Almost every Multi Level Marketing company has its own unique compensation plan. The reps who promote the product get compensated through multiple levels as the name suggests. Some comp plans pay through 10 levels and other may pay through 3. This means when one person signs up and sells some product, they get paid. Then when their customer sells some product, they get paid and when they sell some product, everyone gets paid. You get paid through however many levels the comp plan uses.

It provides incredible leverage! When I say when one rep brings in a new customer, I really mean a rep. There are customers and reps. Network Marketers (people promoting Multi Level Marketing companies) have two objectives. A, to build up a customer base that is happy to pay for the company product every month. This provides stable income and cash flow.

Then there is objective B to recruit other distributors who will sell more product and recruit more reps. As your reps recruit more reps, your team will start to grow. To give you an idea of the leverage Multi Level Marketing provides, let me give you an example. If your company pays out through 5 levels, this may well happen.

You recruit 5 people who all buy the product; they each recruit 5 who recruit 5 and so on through the five levels. You will have over 3000 people below you paying for the product each and every month which will make you a lot of money. You get paid from all your people’s efforts throughout the compensation plan. That’s the kind of leverage Multi Level Marketing provides. It’s a great business model and a lucrative way to earn a living from home.

The trouble is that the industry has been kind of exploited by a bunch of idiots. People forgetting about the whole idea behind Multi Level Marketing. Most people join the business not to sell products, but to recruit reps. Usually, in order to become a rep you must order a certain amount of product every so often. So people forget about the product and just promote the opportunity. They promote the opportunity and compensation plan instead of the product. Its a small problem, but nothing to worry about. So what is Multi Level Marketing? Its an incredible business model and money making opportunity!

About the Author

Learn how to generate 50+ leads a day from David Wood’s MLM training! Discover the secrets of true MLM success at David’s MLM blog.

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