When I first started in this industry, it was because of an add saying:
Need a JOB ? CLICK HERE
I had NO IDEA what MLM or Network Marketing was, or even that it was possible to earn a living on internet. So even though I was being bombarded with information, it took me a while to understand what all those people were talking about, simply because I was missing the very basic principles of the industry. So Ill try and reduce the learning curves of you newbies, as much as I can with this little article
MLM means Multi - Level Marketing. It is a form of marketing that involves selling a product with multiple levels of sale representatives. A primary company gets sale repsentatives to sell a product. Each time a rep (also called distributor of the product, member, affiliate, partner or associate " yes, thats a lot of names!) sells something, he gets a percentage of the gain.
MLM systems are different from traditional marketing system for one main reason : In a traditional Marketing system, the primary company would hire his distributors and pay them at a fixed price wether they succeed in selling the product or not. MLM companies on the other hand pay commissions, which means there is no limitation to the number of sales representatives they can recruit. It also means that sales representative are responsible for their gain : no income is guaranteed, but then their can earn much more than the average person in a traditional marketing system if they are good.
But sales representatives can also become the ones training new sales representatives, and so not only can they earn money from their own sales but also get a commission from their own sales reps, also called their down line. (The person who trained them in the first place being their up line).
All this bring us back to the concept of Multi-Level : someone trains few people to sell a product, who will then also train their own recruited group to sell the product, and if each person of those group train their own team... There is no limit to how many levels an MLM can have. But the number of levels one single person can have a commission from depends on the policy of each company. For some it's unlimited, for some it is.
Whether it be an MLM or a traditional company, the goal behind it is the same : to provide a service or product of value, which hopefully will make the consumer's life better. No matter how brilliant the product is however, it will only get sold if it is known by the targeted audience. This is where distributors or sell reps come in. Their role is to find targeted customers and to get the product in their hands.
One thing you need to be aware of before joining an MLM company: some are legal, some aren't. To make sure yours is legal, simply ask yourself what is the product (or service!) you will be selling. If you can't answer that question, it means they are only about recruiting new sales reps, and it is a pyramidal scheme. If that's the case, it's better not to join !
Need a JOB ? CLICK HERE
I had NO IDEA what MLM or Network Marketing was, or even that it was possible to earn a living on internet. So even though I was being bombarded with information, it took me a while to understand what all those people were talking about, simply because I was missing the very basic principles of the industry. So Ill try and reduce the learning curves of you newbies, as much as I can with this little article
MLM means Multi - Level Marketing. It is a form of marketing that involves selling a product with multiple levels of sale representatives. A primary company gets sale repsentatives to sell a product. Each time a rep (also called distributor of the product, member, affiliate, partner or associate " yes, thats a lot of names!) sells something, he gets a percentage of the gain.
MLM systems are different from traditional marketing system for one main reason : In a traditional Marketing system, the primary company would hire his distributors and pay them at a fixed price wether they succeed in selling the product or not. MLM companies on the other hand pay commissions, which means there is no limitation to the number of sales representatives they can recruit. It also means that sales representative are responsible for their gain : no income is guaranteed, but then their can earn much more than the average person in a traditional marketing system if they are good.
But sales representatives can also become the ones training new sales representatives, and so not only can they earn money from their own sales but also get a commission from their own sales reps, also called their down line. (The person who trained them in the first place being their up line).
All this bring us back to the concept of Multi-Level : someone trains few people to sell a product, who will then also train their own recruited group to sell the product, and if each person of those group train their own team... There is no limit to how many levels an MLM can have. But the number of levels one single person can have a commission from depends on the policy of each company. For some it's unlimited, for some it is.
Whether it be an MLM or a traditional company, the goal behind it is the same : to provide a service or product of value, which hopefully will make the consumer's life better. No matter how brilliant the product is however, it will only get sold if it is known by the targeted audience. This is where distributors or sell reps come in. Their role is to find targeted customers and to get the product in their hands.
One thing you need to be aware of before joining an MLM company: some are legal, some aren't. To make sure yours is legal, simply ask yourself what is the product (or service!) you will be selling. If you can't answer that question, it means they are only about recruiting new sales reps, and it is a pyramidal scheme. If that's the case, it's better not to join !
About the Author:
Tiphaine Siovel is an Artist and Online Business & marketing coach. She has teamed up with some of the top earners in the industry to build a support system to help entrepreneurs get to the next level with their business and finally get out of the rat race. Find more of her Network Marketing Tips.
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