What is Network Marketing A.K.A Multi-Level Marketing (MLM)?
Multi-Level Marketing(MLM) (As defined by Wikipedia), is a marketing strategy in which the sales force is compensated not only for sales they generate, but also for the sales of the other salespeople that they recruit. This recruited sales force is referred to as the participant's "downline", and can provide multiple levels of compensation. Other terms used for MLM include pyramid selling, network marketing, and referral marketing. According to the US FTC (Federal Trade Commission), some companies that use multi-level marketing exploit members of their networks and constitute illegal pyramid schemes.
You can watch the video below for more elaborate definition of Network Marketing explained by Tim Sales.
Credits to the owner of the video.
Now that you have knowledge about Muti-Level Marketing or whatever you want to call it, let's move on to the main point of this blog entry 'Guidelines'.
First - Check Legality.
We have to distinguish Legal Network Marketing from Malicious Pyramiding Schemes. It is really pretty obvious, some pyramiding scams operate without physical product or either suspicious. Meaning, the company only gain money from referring/recruiting people for their investment/joining fee which will be used to compensate sponsors/uplines.
Here's a brief Anti-Pyramiding Scam Educational Video From DTI.
Credits to the owner of the video.
Second - The Company Product.
It is a must that MLM Companies have their own product. Usually MLM's are pro-distribution companies. It's simple, an outstanding sales/movement of products/merchandise ensures profit, therefore financial stability of the company and good compensation for their distributors. Remember, many legit MLM Company shuts down after a year or two due to company bankruptcy. Some because of the Company's bad compensation plan.
Third - Company Credibility, Integrity and Milestones.
Company must exercise transparency. The legality of the Company must never be put to questions, so they are required to show proof of registration documents and etc. While, no or less number of complaints and law suits reflects the company integrity. Somehow, long Company operations is an enough proof of company stability, because Company milestones represents its financial capability to run and pay its employees/workers.
Fourth - A Good Marketing Plan.
In MLM, Company provides seminars and large scale meetings where they show and discuss the company marketing strategy and how they plan to move the product and reach the end-users/consumers. Well, every MLM Company comes with their own marketing strategy and I cannot tell you if one is better than the other, but my advise is that you attend as much different company seminars as you could, study it. Then it's up to you to decide which one suits you best!
Fifth and last!- A Good Compensation Plan.
Alright!, you passed the 1st, 2nd, 3rd and 4th guide, so now we go to what you'll gain from them. There are lot's of MLM company with different ways/styles to convince prospect investors/partners and I cannot tell you if one is better than the other. It is vital that you scrutinize this to make sure they are not underpaying their employees which may result to complaints/law suits Or over paying which may lead of course to company bankruptcy, moreover.. closure. Again, my best advise is to also attend as much different company seminars and study their Compensation Plan until you figure out what company will be the best tool to reach and achieve your goal; to become FILTHY RICH!..
That's about it!
By the way, my objective for writing this blog is to give basic knowledge about Multi-Level Marketing, to establish better understanding about alternative source of income, define tools to achieve financial freedom, and to share the same Opportunity to others, because I'm a Network Marketer Myself!!
Because "Nobody is an Island", you cannot achieve your goal alone. Learn to multiply yourself through others. Take the risk and learn from your mistakes. Use the Power of Leveraging!
Happy Networking!
You're kind for reading my blog, but will you be so kind enough to watch the video below, Here's my chosen Multi-Level Marketing Company and a brief explanation about it's marketing and compensation plan!!
Credits to the owner of the video.
Thanks for reading my Blog Post!!
"Ignorance is lack of willingness to learn."
Blowfly
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