What is MLM? Lets break it down
Marketing is simply moving a product or service from the manufacturer or provider to the consumer.
Multi level refers to the system of compensation provided to those, who are causing the product to move or the service to be provided.
Multi means more than one.
Level is better termed as generation. so it can be called multi generation. We stay with popular Multi level.
Multi level is so common than many illegal schemes call themselves Multi level marketing company. This creates a stigma in the industry that many new companies are using other names for their type of marketing like Unilevel marketing, network marketing and more.
Three ways of moving products
1.Retailing
2.Direct Sales
3.Multi level marketing
Pyramid Schemes
Pyramid sales are illegal, because of their failure to move products or provide valid service.
How can u even call it marketing, when there is nothing to market. Multi level they are may be! but not marketing.
Facts
Don’t confuse MLM for direct selling.
In MLM, you are in Business for yourself not by yourself.
If you wish, you can sell retail and make profit. But you don’t have to sell retail to be successful. The real success is in Building organizations.
Let your sales come as the natural result of building organization. Many fail because they do it the other way.The word Selling triggers negative thoughts in the minds of about 95% of people.
In MLM you don’t need to sell in traditional sense of the word. However, products does have to move or Nobody, but nobody , gets paid.
People define selling as an act of calling on strangers to sell them things they may either need or not.
After Extensive research into the network marketing industry, Harvard Business School developed three criteria that a network marketing company must have in order to make it a most desirable opportunity.
1) The company must be at least 18 months old.
2) The company must have a product that is highly consumable.
3) It needs to be a “ground floor opportunity”.
In addition, Harvard Business School states there are four distinct stages of growth in a network marketing company. They are as follows:
1) Foundation- This usually last approximately six months and is when a company develops its products and marketing plan.
2) Concentration-This period lasts approximately 2 to 4 years from when the distributor network is started.
3) Momentum- This period lasts 2-4 years also. This is when the company experiences phenomenal growth and distributorships’ businesses explode. It is during this period that the company virtually sweeps the nation. When a company’s sales reach 50 million, it reaches what is called critical mass(Sales go vertically right off the graph) For example, say the organisation have distributors who are making averagely $1,000.00 per month. When the company reaches critical mass, distributors automatically experience a 10 fold increase in their earnings. In other words a $1,000.00 check per month becomes $10,000.00 per month. This is the reason for getting involved on the ground floor, so you will experience the benefits of explosive growth
4) Stability- This is the period that lasts for the life of the company. A network marketing company that is dedicated to the success of its distributors will experience longevity, thereby insuring that an active distributorship will realise continued earnings growth
So, based on this data, the people that are preaching about waiting until an opportunity is plenty years old lose out on the true, high dollar positions. If you are NOT in on time, you will make money BUT the upline makes SUBSTANTIALLY more money…because of their position.
NOW… do you need another reason to get all your friends and family in?
1 comment:
Bros, permission to post this on my blog sir. Nice write up here.
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