“WHAT IS MLM?” Introduction to the basics of MLM Programs
for MLM Consultants business success

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The Worldwide economy is changing forever.

There's an increasing reliance on service businesses.

Fundamental changes in the way the Worldwide economy is structured means that people who don't adapt will be left behind.

In place of the dominant mega-corporations are thousands of smaller but extremely profitable home-based business enterprises. And they don't have any of the problems associated with a typical business or franchise.

Consider the typical traditional business:

- Large start-up cost, employee hassles, collections/Inventory

- Customer/employee theft, franchise fees/royalties

- Competition/limited markets

- Special skill training, permits/licenses/insurance etc.

- Specialised equipment

Is it any wonder that over 90% of all new businesses fail?

But records show 85% of home-based businesses are successful.

Here's why a MLM home-based business is especially unique:

- Very low start-up costs

- Daily, weekly and monthly cash flow options

- No employees, No collections

- No theft, no franchise fees, no special skills, no special permits

- No manufacturing

- Tremendous tax advantages and tax write-offs

- Co-operation instead of competition

- Unlimited international markets

Its the world's perfect business and there's still much more!

THE BASICS OF MLM PROGRAMS

First understand that a legitimate MLM program is NOT an illegal “pyramid scheme.”

It is 100% legal and many multimillion companies market their product strictly through MLM promotion.

Some of the best known MLM companies include Herbalife, Amway, Shaklee, Tupperware, Princess House (a subsidiary of Colgate Palmolive), A.L. Williams, Mary Kay Cosmetics, U.S. Sprint, MCI, and NSA.

These companies have been around for decades. There are actually 100's to 1,000's more MLM companies. Like other companies, some are good and some are not so good.

But one thing is for sure. MLM is here to stay, and it is an explosive growth field!

So what's the big attraction to MLM companies and programs?

Well, it represents a wonderful opportunity for the "little fella" to start his own business on a part time basis and make a whole lot of money!

Many earn well into the large 6 figures (over $1,000,000)! How is this possible? The concept is fairly simple.

MLM companies offer their products and services through independent distributors who can then recruit other distributors. That way, a distributor can buy the MLM products at a discount and earn money selling the product directly to others.

He also earns "overrides" for the distributors that he has sponsored. And it gets better. Normally, a Distributor also earns "overrides" for several levels that are deep in his organization.

These Distributors are also sometimes called his "downline" or his "organization". You have probably seen how an organization can grow, but I'll show you again just in case.

Let's say that your organization has 5 levels. Let's assume that you sponsor 5 people, and everyone does likewise. Your downline would then grow like this:

Level 1 = 5 Distributors

Level 2 = 25 Distributors

Level 3 = 125` Distributors

Level 4 = 625 Distributors

Level 5 = 3,125 Distributors

Total = 3,905 Distributors

Now that's quite a few distributors! Even if you earned only $10 a month for each distributor in your "downline", you would be earning $39,050 a month!

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So how do you select the right product to market? Obviously the more mass appeal your product has, the better your odds for success, take for example leaf blowers.

Sure there's a demand for slow-burn wood heaters. But only during certain times of the year, in certain parts of the country. Will there be reorders next month? Is this something that can easily be shipped?

Does it meet basic human needs, wants and desires?

What If you found a product and /or service that did???

In direct marketing, anyone with imagination, determination and a willingness to learn will have very little difficulty getting started.

A number of the most successful one-person operations obtain an income as high as $40,000-$100,000 a year. That's from the Department of Commerce!

Mass marketing studies show the fundamentals most people desire are:

• Financial Security

• Vibrant health and energy

• Youthful appearance

• Recognition and appreciation

• Personal development and self-improvement

• Fun and excitement

• Independence

• Travel

• Convenience

There are some basic rules for selecting a product. Some are obvious, like working with a product you believe in and use yourself.

This way it's more fun, and you can usually get your own products at a deep discount or even for free. But there are other considerations too. The product should have:

• Mass appeal

• Emotional appeal (making a difference in people's lives)

• Easy to use

• Reasonable and competitively priced

• Unique and exclusive (not available in stores)

• High quality

• Money-back guarantee

• Easy to ship (non-perishable, non-breakable)

Once you have made a decision on which MLM opportunity you want to be a Distributor of, you will want to build your MLM organization DEEP!

You will always earn the most money in your deep levels. In fact, a lot of MLM programs are geared so you will make more on your deep levels (per person) than what you will earn on your first level.

The "Secret Key" in building a deep organization is fairly simple. You must HELP YOUR FIRST LEVEL, AND THEN TEACH THEM HOW TO HELP THEIR FIRST LEVEL!

In other words, you must have a system that is 100% duplicative. To do this, you must first have a method that works for you. Then show your first level how to replicate your method.

And lastly, but most important, YOU MUST BE ABLE TO TEACH YOUR FIRST LEVEL TO TEACH THEIR FIRST LEVEL!

To look at this another way, you must be able to HELP your first level and show them how to help their first level of downline.

When its done properly, MLM is a beautiful system. You don't have to sell the world! Only a few in your first level.

Now before you read any further, I want you to agree with what we have said so far. If you want to build a large MLM organization, you do so by primarily working with your first level of people. Agree? Just imagine. Let's say you start with 10 people. If your MLM program has 5 levels, it can grow 10 x 10 x 10 x 10 x10 = 100,000 on your 5th level!

Now admittedly, that is a perfect mathematical model, and it is unlikely that will happen and we both know it. But, if you have a good system that really can be implemented, you probably can get close!

How many people you should sponsor on your first level? You decide, but you should use this as a guideline: "Sponsor only those that you can help."

If you have some up front cash to advertise or whatever, you may be able to help more than 10 people. On the other hand, if you are truly starting on a shoestring, maybe you can help only a few. But I find it hard to believe that if you use this program, you can't help at least 10 people. But you decide.

The objective is simple. Decide how many ACTIVE people you want on you first level, and then go for it!

You will no doubt sign up people that will do nothing! When that happens, don't be discouraged. Instead, you need to find a replacement that will be active.

If you set your goal to have 10 active people in your first level, don't stop until you have met your goals.

Remember, as soon as you sign up one or two people in your first level, you will want to help these people as well as filling out your own first level. During this period, your upline also will be available to help you !

Therefore, your upline is helping you, you are helping yourself, and you are helping your downline - all at the same time. Take this into consideration before you commit to how many people you want to build in your first level.

You also should set a goal in your mind for how long it will take you to fill in you first level. Rome was not built in a day, so give yourself enough time. The important thing is to stick to it. If you stay with it long enough, it will blossom for you.

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