What is MLM?”
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Multilevel Marketing is one of the fastest growing yet
most misunderstood methods of moving products in use
today.
It has been termed by many as the Wave-of-the
Eighties.
But, it will go far beyond that.
By the 90's more than 100
billion dollars worth of products and services has been
moved through Multilevel Marketing companies.
As we are in
the 21st century watch out !
What is MLM ?
This question is quite frequently in response to a button
we often wear or we have seen wearing by others.
Let's explain it .
1. Marketing simply means moving a product or service from
the manufacturer or provider to the consumer. 2. Multilevel refers to the system of compensation provided
to the persons who are causing the product to move or the
service to be provided.
"Multi" means more than one.
"Level" means generation.
There are really 5 basic methods of moving products :
1. Retailing.
ex. the drug store, the department store,....
You go into a store and buy something.
2. Direct Sales.
ex. Tupperware, Avon, .....
3. Multilevel Marketing.
This should not be confused with retailing and Direct Sales
which commonly is.
4. Mail Order.
This can be an MLM but mostly is included in the Direct
Sales category.
5. Pyramid Sales.
This type of Sales is to often confused with MLM.
The fact is, Pyramids are illegal. The main reasons they
may be illegal is their failure to move a product or to
provide a valid service.
If a product doesn't move, how can you even call
it "marketing", let alone "Multilevel Marketing".
Multilevel it may be, but Marketing they are not !!!
Now, most objections that people have about getting into
Multilevel Marketing are due to not realising the
difference between MLM, Pyramid Sales and the Direct Sales
methods of marketing.
This is understandable because most reputable MLM companies
belong to the Direct Selling Association.
We have been conditioned to think of MLM as door to door
direct sales programs because our first encounter with them
was when a distributor knocked on our door to sell us
something.
Anyway, there are some features that differentiate MLM from
Retail and Direct Sales companies and on very significant
difference is that in MLM you are in business for YOURSELF
but not BY YOURSELF.
Being in business for yourself means you are buying the
products WHOLESALE from the company you are representing.
This means also that you can use these products for your
own consumption at WHOLESALE PRICES.
Since we are buying products WHOLESALE we can, if we wish,
sell these products at RETAIL and make a PROFIT.
The most common misunderstanding about MLM is the notion
that you HAVE TO sell retail to be successful.
You may sell if you want to or have to due to your
particular program procedure, but in regard to making the
larger sums of income, the real success is in building the
organisation.
Let your sales come as the natural result of building the
organization.
The word "selling" triggers negative thoughts in the minds
of about 95 % of the people.
In MLM you don't need to "sell" the products in the
traditional sense of the word.
However, the PRODUCT DOES HAVE TO MOVE or NOBODY GETS PAID.
When you build an organization, you are actually building a
network through which to channel your products or
services.
Retailing is the foundation of Network Marketing. Sales in
MLM or Network Marketing come from distributors SHARING
with their friends, neighbours and relatives. They never
have to talk to strangers. Network Marketing or MLM is
building an organization in which a lot of distributors all
retail a little.
So, you see, its not going door to door every day calling
on strangers.
Another point that differentiates MLM from Direct Sales is
the SPONSORING of other distributors. This is called
RECRUITING.
When you SPONSOR someone, you are making a COMITMENT to
TEACH them how to do what you are doing, building a
BUSINESS OF THEIR OWN. Sponsoring is what makes a
Multilevel Marketing business so different an makes it
grow.
As your organization grows, you are building toward
becoming an INDEPENDANT SUCCESFULL BUSINESS PERSON. You are
your OWN BOSS.
With Direct Selling companies you work for the company. If
you decide to quit that company and move to another area,
you end up having to start all over again.
In almost all of the MLM Programs you can move to another
area of the country and sponsor people without losing the
volume generated by the group you left behind.
In MLM Programs you can make a lot of money by building an
organization as your primary function.
A Multilevel Marketing Organization is not a pyramid
scheme.
The pyramid is built from the top down and only those in at
the very beginning can ever be near the top. And the price
of the products or services get every step higher and
higher, leaving the people at the bottom broke.
In the MLM Marketing everybody starts at the bottom and has
the opportunity to build a large organisation, even larger
than his sponsor's organization if he wants.
MLM Marketing is the solution to the distribution costs of
the most companies because there will be no more channels
between the producer and the consumer. And the most part of
the benefit can be paid to the distributors.
Fernando Soave
CEO CUTTING EDGE MLM
http://www.cuttingedgemlm.tk
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