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What is MLM?

by Chris Bailey
http://www.WorkAtHomeNetwork.com
Copyright © 2004
All Rights Reserved

What MLM Is and What It Should Be About

This article is intended to explain what MLM is supposed to be about, what it often unfortunately really is, and what those of us in the industry can all do to make it what it should be.

Typical Definition of MLM:  MLM(Multilevel Marketing) is an alternative distribution channel where products and services are sold to the end user by independent distributors and these distibutors earn compensation on not only their own sales, but those of any independent distributors that they sponsor into the opportunity(their downline).

Other names for MLM include Network Marketing, Referral Marketing, and Consumer Direct Marketing.  Personally, I view most programs that pay commissions on more than one level as an MLM structure.re payouts occur at two or more levels; i.e., if you make a sale, both you and the person above you will get a portion of the proceeds.

What MLM Should Be

Those of us involved in the MLM/Network Marketing industry should be promoting our offers honestly and with as little hype as possible.

As the definition above states, MLM is supposed to be an alternative distribution channel where products and services are sold to end users.  The primary focus of your MLM business should be on the sales and marketing of your company's products and services with a secondary focus on recruiting and training other sales agents into your organization.

Why do I believe that it should be worked this way?  Quite simply because when the focus is more on recruiting than on sales and marketing, an organization based almost solely on self consumption is created with very few sales to individuals that are not involved in the business opportunity.  This type of activity has led to..................

The Unfortunate Reality of MLM

Because so many people have incorrect preconceived notions of what selling is really all about, the majority who get involved in MLM focus almost solely on recruiting.  What this has led to are thousands of shattered dreams and millions of dollars lost by people who were sold a package of outright lies.

Just a few of the lies and myths unfortunately spread by many of my MLM colleagues and so-called leaders:

• No selling involved:  Wrong...whether you are recruiting or retailing, you are selling.  You're either selling your company's products and services or you are selling the opportunity.
• Anyone can do this:  Well, yes and no.  Anyone can do this, but most won't.  The honest truth is that most people are not cut out to run their own business.  The majority of people will need to change their way of thinking in order to successfully begin thinking like a business owner as opposed to an employee.
• Everyone wants/needs our products/services:  No matter how good the products and services you offer are, many people simply will not be interested.  One of the keys to successful sales is realizing that these types of rejections must not be taken personally.
• Succeeding is easy:  While there are some people who are naturally great networkers, most of us have to continually evolve and improve in order to become successful.  I personally believe that doing what's necessary is simple, but it is definitely not always easy for most.  You must be consistent and focused in your efforts.
• Guaranteed Success:  There is no guarantee of success in business.
• Automated Systems do it for you:  I've seen so many automated systems come and go with great promises and hype.  An automated system is only as good as the individual and company behind it.  So many companies guarantee spillover from your uplines efforts, automated recruiting systems, blah, blah, blah.  These types of systems tend to come out of the gate fast and then crumble from the bottom up because nobody below is making money since they were not taught how to make retail sales.  It's all about recruiting.

How We Can Make It Right

So, what can those of us who love the MLM industry do to help eliminate the negative stigma that often surrounds our business.

• Promote with integrity:  Be honest.  Let your recruits know up front that, yes, this does involve selling because without sales, no money can be legally earned
• Market your products and services:  If you're company's products and services are worthwhile and competitively priced, you should be able to make a solid income via retail sales alone.  If not, then perhaps you are not involved with a truly legitimate company that has a market outside of its distributor force.
• Be as hype-free as possible:  Yes, unfortunately, hype sells.  But as an industry, we need to market as honestly and responsibly as possible for both our products and our opportunity.
• Train and educate both your downline and your customers:  The more happy customers and the more successful business associates we can create, the better off our industry will be.  Creating positive experiences for both consumers and aspiring entrepreneurs is one key to creating more respect for legitimate MLM companies.

The bottom line is that all of us in the MLM industry need to first provide viable products and services to our customers and second recruit and train other motivated individuals to do the same.  Recruiting people with misleading "facts" and hype only hurts our industry and creates an unstable organization filled with failure that leads to more negativity and mistrust towards a business model that can be very lucrative to those who are properly educated before becoming involved.

This article is reprinted with premission of Chris Bailey, webmaster of http://www.workathomenetwork.com a home based business resource site filled with tips, strategies, and advice for building a successful home business.

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Home Business Success Learning Center:

Getting Your Business Started Step-By-Step

1. What are you going to market?  Visit a few of the Discussion Forums we recommend to find your match
2.   Write down your business plan and goals
3.  Think of and register your business domain name
4.   Now you need a high quality web host
5.   Learn the best Search Engine Optimization and Marketing techniques
6.   Get your home office supplies and services in place.
7.   Stay Focused and continually work on Personal Growth.
8.   Frequently reevaluate your goals and results
9.   Make time for family and fun.
10.   Rinse and repeat  ;-)

There's really a little more to it than the above steps, but those are the basics.

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