MLM is short for multi level marketing.
It is also known as network marketing.
All 3 of these, MLM, network marketing, and multi level marketing, mean the same thing.
Multi level marketing is the least used of the three phrases. Today network marketing is the phrase used with the most prestige.
MLM is used because of how easy it is to say and type. People in the network marketing business know what MLM means.
Newbies might not so let me break it down.
– Multi means more than one.
– Level indicates distance from the top (you), down, or from the bottom of your group up to you.
– Marketing means you are promoting something.
In MLM you are promoting products you sell at retail and you are promoting your business opportunity where you enroll new members into your business.
Here is what I know today about multi level marketing.
1. Sell products at retail. This should be your primary reason for joining an MLM business.
Think of this as ecommerce. Selling things online.
Direct sales is a noble profession to get into. When you join an MLM company you are an independent distributor so you are in business for yourself.
This should be your #1 motivation. Selling products at retail has not necessarily been the focus of network marketers in the past, but will be going forward thanks to recent FTC ruling against Herbalife for $200 million.
Basically they have put the multilevel marketing industry on notice that selling products to retail customers should be your focus. Signing up new members strictly to make money is illegal.
For this reason I feel it is important that you buy the product you’re going to sell and learn everything about it. Then find a handful of good customers that will buy from you every month.
Because you’re now focusing your business on selling you should consider getting 5 to 10 new customers. Then start adding more of them from there.
Here is the great thing about retailing products today!
The customer fulfillment now is provided by the MLM company so you can just focus on selling. The company collects the money, and ships the products to your customer for you.
You earn a retail commission paid either weekly or monthly based on your MLM company’s compensation plan. Retail commissions are the difference between what the company would sell the product to you as a distributor for, and what you turn around and sell it for to the customer.
This difference between the retail and wholesale price is the commission you make on that sale. This can be a lot of money every month as a direct sales rep.
2. Enroll new members. Once you’re making money as a direct sales rep you can start to build your own sales team.
This is where the distributor portion of the business comes into play. You now have a business and you want to branch out.
Your goal is to find new people to sponsor into your business that want to duplicate what you have been doing. This means their focus is going to be on getting new retail customers that they’re making money selling products to as well.
The multilevel marketing company is going to pay you commissions for the time you spend training your new team members. This is an ongoing process.
It is the fastest way to make a lot more money because you’re now leveraging your time by adding new members to your sales force. In network marketing this is known as building a downline of distributors.
You will be personally enrolling people on your front line. You will be helping people repeat this process and as your downline grows you will be adding new levels all of the time.
This is how your business goes from one direct sales rep, you, to a large organization of your own. That is what makes multi level marketing such a great business model when done correctly!
Difference Between Multi Level Marketing and Network Marketing
What’s different about network marketing from multilevel marketing? There’s no real difference in the business models.
However, I do think there’s now a different approach being taken by successful MLM distributors. In the past the focus was primarily on sponsoring new people into your downline.
This was either done face-to-face around a coffee table, or in front of a group using a marker board. Now you can build a downline using websites, email auto responders for follow-up, and other tools such as a smartphone, text messaging or worldwide with Skype.
Your primary focus on enrolling new distributors is going to start with learning Internet marketing. What you’re trying to do is build an email list by using a sales funnel. Your funnel consists of starting your own blog, and having a sign-up form on it.
You will also be able to promote landing pages provided to you by the MLM company. You’re not looking to enroll new members into your business right now.
What you’re focusing on is just building your email list and letting the autoresponder follow-up and build credibility and relationships for you. In essence what you are doing is branding yourself to people on your list.
Your brand is what people are going to want to follow. You are who they want to get in business with.
This is a totally different approach than just contacting friends and relatives to see if that be interested in joining a business opportunity. Now you focus on getting retail customer so you’re profitable. Then you reinvest some of your profits and Internet marketing can help you build your list.
You don’t have to write your own blog articles if you don’t want to. You can hire a blog writer to do that for you and that is a service I provide primarily to people in the network marketing industry.
Learn about me, Jeff Schuman here: TeamSchuman.com
How hard is all of this?
I think one of the biggest disservices that network markers have done in the past is presenting their business opportunity as something that’s not hard to do it all. In reality that’s not really the case.
After all you are in business for yourself. Any business that is going to be successful will take time and effort to get off the ground. Plan on working to build up your retail customers.
Focus on that first. Then plan on finding new team members that you can sponsor in your business.
You’re gonna be doing this one new person or couple at a time. Obviously this is not hard work physically, but it is work.
Especially when you do it part-time. Luckily you can automate so much of your business today which helps you maximize your time more effectively.
However, this is going to take some skills and little bit of time on your part to learn how to do it and get it off the ground. Think about the alternatives.
What do you have going on in your life right now that you could get excited about?
Maybe a multi level marketing business of your own could help you make more money and give you a long term business to get excited about.
Would you like to discuss getting affordable articles for your blog?
Use the contact form on the upper right hand side of this page to email me and we can set up a time to talk via Skype or smart phone. If you would like a little information first on the quality and pricing for the articles I write Click here!
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