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Multi Level Marketing

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Multi Level Marketing

Different levels of responsibility and reward

 

 

Multi level marketing or Network Marketing, is a business distribution sales and marketing model where independent sellers represent a parent company and are divided into tiers or hierarchial levels of sales volume and financial input or responsibility. At an upper level, an 'owner' might appoint a small team of 'managers' who buy a product from the owner. They, in turn might each be allowed to form their own teams of 'marketing executives' - the names or titles will vary from one company scheme to another.

Dependent on the product and perceived sales potential, multi level marketing may involve three or more levels with each undertaking to buy and sell a certain volume of product. These levels are often refered to as the 'up-line' and the 'down-line'

At the lowest tier level 'executive salesmen' will market directly to consumers by means of relationship referral and direct selling. Their incentive will be directly related to sales achieved since they will normally be required to purchase the product pre sale, at a discount on their direct selling price. They will attempt to build their own customer base, thus multi level marketing, so helping develop the company by promoting the product.

Promotion through the various levels is generally by purchase and/or distribution of substantial levels of product which are then on-sold by lower level team members.

If the product and the network marketing are good, so will be the long term income potential. That said, those who do best are usually the people who get involved fairly early in the cycle because it gets harder to recruit more good people further down the line.

It is not always easy to spot the difference between perfectly legal and reputable network or multi-level

marketing and Pyramid (or Ponzi) selling which is now illegal in most countries. If participants are paid primarily from money received from new recruits, or if they are required to buy more product than they are likely to sell, the scheme is likely to be fraudulent. You can sort out the Truth and Lies of some cons and scams on a fascinating site owned by retired Detective Lieutenant Dennis Marlock.

The ethics of MLM - Networking are discussed by Bob Podolsky on his site - well worth reading.

MLM is not the easiest of concepts to explain and it can easilly be misrepresented. Before getting involved you need confidence in the company, in the product and in your personal ability to sell it on, either to a team you recruit, or directly to the public.

Financial returns will be directly affected by the level or tier you start at and the amount of stock you are required to purchase. So, think carefully about multi level marketing, take advice, meet not just with the upper level managers or owners, but also with the people who are selling at the public level. If they are happy, it says much for the product and price.

That said, many projects will be available to you for £100 ($200) or less. For your money you will get basic product stocks, marketing help and so on. That won't earn you big money but it will quickly prove to you if it's the right business for you and we would suggest that you treat that low initial cost as a total loss item - in other words, calculate the risk factor on the basis that will be the most you can lose if you try MLM and decide not to carry on with the system or product.

Fancy something 'artistic' and inexpensive to 'put your toe in the water'? Ronda Tuckness is building a career in MLM, selling scented candles. Start up costs are minimal and this is a product with global appeal. She is based in Texas but really, a product like this could be sold anywhere.

So, don't think that MLR is strictly for the 'Big Boys'. 'Avon Calling' is one of those catch phrases that's almost part of the English language. An Avon rep promoting and delivering cosmetics house to house is usually assured of a welcome and - for the right person - it could prove a suitable part-time or even full-time career.

Another very well known name in the multi level marketing game is Kleeneze which offers an interesting opportunity to buy into part time work delivering their catalogues door to door and then collecting and later delivering any orders obtained. Not expensive to start, payment is on commission but the drop-out rate is very high. Worth reading this web-site before getting involved.

http://www.squidoo.com/kleeneze

 

One very positive aspect of multi level marketing is that you are likely to be working as a member of a team. If you are a team player, this may be a very real incentive. However; at the end of the day, it's still all about selling!

 

Real life experience. Mike Moran discusses his experiences of Networking in the next section

Here

 

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