What is MLM? It’s Another Term for Network Marketing which is Dominating Industries
MLM is another term for Network Marketing which is what we do by owning a Home-Based business. More and more people are switching to home-based businesses because it allows people to create their own schedule, it helps create a residual passive income, which I will explain in a bit, and it helps people become stronger and spiritually healthier by helping others to become successful.
Network marketing is becoming widely accepted throughout the world with 100’s of 1000’s of independent distributors representing hundreds of MLM companies.
Being a network marketer in a home-based business is like owning a franchise, but without the headache and the expense. It takes almost a million dollars to open a McDonalds or Starbucks, but with network marketing you can become a business owner for $70 to $500. There is no risk in network marketing. If you don’t like the product, you simply cancel your “autoship” and move on. Some companies offer a return policy, so literally no money is lost upon trying the venture.
There are of course a lot of misconceptions with MLM and network marketing as a whole. Why wouldn’t there be? It sounds too good to be true for most, or they write it off as being a Pyramid or Ponzi Scheme. People that think these things are usually ignorant. It’s like thinking that all immigrants steal and hide in dark rooms, or that all black people rob people. It is just ignorance and people tend to “generalize” and “categorize” things neatly into a box so they can understand it.
To clear the objections: a Ponzi scheme is defined by the FTC as “commissions solely based on recruitment,” this means a Ponzi doesn’t have a “consumable” product and money is paid out only on recruiting others. This is not a legitimate network marketing company. I promote a real network marketing company, which has a legitimate FDA approved supplement.
A Pyramid is considered a business where only the person at the top makes all the money and the people on the bottom don’t. What’s ironic about people calling network marketing a “Pyramid”, work in a pyramid themselves. Think about it: Your job has a CEO, president or boss at the top who makes the most money, then the managers make a little less, then YOU, then the laborers below you make the least. Looks like a pyramid to me.
In fact, it’s more of a pyramid than MLM because a CEO can quit one company and start at the top in another, whereas network marketing everyone starts at the BOTTOM, no matter what. There is no special handouts in MLM. People who are at the top have worked very hard to get there. They have worked on their self-development and have helped others become successful, which in turn made them successful as well.
What About the Money?
Now, for the residual income. You get pure residual income paid out usually monthly on the commissions incurred during that month. As long as your business has distributors ordering their monthly product, you have residual income. This is money you would get whether you worked or not, which is the true blessing of democracy.
There are different compensation structures for each company, but the one I’m in is a Binary. A Binary commission structure means I get paid every time I match my “Business volume” with my right leg to my left leg.
In the company I’m in, they pay $15 for every match every month. So, if I have 1000 BV on my left and 1000 BV on my right on the last day of the month, I get $150 of residual income. It would take a lot of money in stocks or in the bank to make $150 in dividends, about $50,000. Who has $50k to invest? It’s easier to start a home-based business.
Best Product Lines
Next, is the products. Not only can you sell these products retail, or share them with friends and family wholesale, but you can benefit from them yourself. Most good network marketing companies out there spend a lot of money on research and development. These products are not found anywhere else. They are not on the shelves of your grocery store. The reason why they are not already out in the general marketplace is because network marketing companies don’t spend any money on advertising. That’s why it’s called network marketing, the MLM companies pass the savings onto the distributors, people like you and I, who then share the products and opportunity to others.
I Don’t Do Sales
Another issue people have with network marketing is that they think they have to “sell.” If you truly love the products then you are not “selling,” you are simply sharing a great product that you love yourself, like recommending a great movie to someone, you don’t have to “sell” them on it if you loved it, right? Most network marketers are not sales people, in fact, some sales people do badly in network marketing because they are not “teachers.” They are only going “after the sale”, they are not spending anytime teaching their new distributors about the business and “duplication.”
The Power of Duplication
Duplication is the magic in MLM. If you bring on board 3 people and you “teach” them how to bring on 3 people, you would have hundreds of people on your team in no time. Network marketing is about leveraging your efforts with the efforts of others, meaning you don’t need to bring in hundreds of people yourself, just 3 to 5.
Csiszer Lóránt (pepino78@gmail.com)
