Network marketing or multi-level marketing (MLM) is a business model where MLM companies rely on a sales force of independent contractors to sell their products or services.
With minimal upfront costs, you can join one of these companies as a distributor. They provide you with sales and marketing materials, replicated websites, an online sales portal to track sales and commissions, and one-on-one support from other successful distributors.
As an independent sales person, you can earn commissions for any company products or services you personally market and sell.
In addition to your personal retail sales volume, you are also given the option to build your own sales team (recruit and train other distributors to sell for the company).
Your overall compensation is based on your personal sales, as well as the total sales volume of everyone in your sales team.
The potential to leverage the sales volume of a large sales organization is what draws many to network marketing…
The more you and your team sell = the higher your earnings.
Why Multi-Level Marketing?
Network marketing is growing in popularity as a side-hustle or even an alternative to the trappings of the rat-race, such as stressful commutes, office politics, and salary caps…
Just a few of the reasons people turn to network marketing are:
- Work from anywhere: This is something you can do with just a wifi connection and a phone.
- Set your own schedule: You decide the hours you want to work each day.
- No employees: Build your own sales organization without payroll, tax worries, and other headaches of a traditional business.
- No salary caps: You are compensated in direct proportion to the sales volume you (and your team) produce.
Freedom / Independence
MLM offers the promise of flexible work schedules, location independence, team support, and compensation packages that are directly tied to your performance…
With most companies, you can start building your business with just a laptop and a general knowledge of the company’s products…
In the video below, Robert Kiyosaki, the best-selling author of Rich Dad Poor Dad discusses why network marketing is a smart choice…
Low Start-Up Costs
There is very little risk to get started with an MLM. Some don’t even charge you to “join.” They do however, usually expect you to be a consumer of the products or services that you’re promoting.
You shouldn’t sell a product or service that you don’t actually like and use! So make sure to find an MLM with products that you believe in.
Some of the biggest companies in America use the MLM business model. You can’t get on facebook these days without seeing a #BossMom promoting make-up or skin care products…
Well known global brands such as Avon and Mary Kay cosmetics are MLMs.
Infomercial giants such as BeachBody and Rodan & Fields sell their products through a network of independent associates…
Even the Tupperware brand sells their products via independent sales people. Here is a list of some of the more multi-level marketing companies and brands you may recognize.
Accountability, Coaching, & Support System
When you join a network marketing company, you plug into an organization that wants you to succeed. A good MLM team will have a strong upline support system available to coach you and help you reach your goals.
As the saying goes, you’re in business for yourself, but you’re not in business by yourself…
Is MLM a Pyramid Scheme?
Network marketing is a $184 Billion industry. There are hundreds of reputable network marketing companies operating globally. Unfortunately, new companies pop up every day and there is always a risk of getting involved with fraudsters and scammers…
It’s important to do your research to ensure you’re dealing with a legitimate direct sales company and NOT an illegal pyramid scheme.
A few questions to consider:
Does the company have REAL products or services? Would you buy their products if there wasn’t a “business opportunity” attached? Consider it a red flag if the company you’re vetting is more focused on recruiting than it is on developing and selling high-end products or services to real customers.
The compensation plan itself should also incentivize product sales and customer acquisition over recruiting new reps.
A real network marketing company will NOT pay a commission for recruiting. A commission should only be earned when actual product is sold.
The Better Business Bureau has more tips to help you avoid falling for a pyramid scheme, but know that pyramid schemes are illegal in the United States (and most other countries)…
If you are vetting an established MLM that has been doing business in your country for more than a few years, you’re likely fine. Always do your research, but know the FTC will shut down a fraudulent business in the U.S.
In the following video, network marketing industry veteran Darin Kidd explains the difference between a legitimate network marketing business opportunity and a pyramid scheme.
Network Marketing is NOT Easy
Traditional network marketing is hard. While the direct sales industry is thriving, SELLING is difficult. It’s an art and skill. Here are some scary stats:
- A large percentage of people that join MLMs never make any money…
- The average “old school” network marketer recruits just two people in their career.
- People don’t really want to sell to their “friends and family” (but unfortunately are NOT taught any other tactics).
The truth is that many who sign up, never even attempt to build a business. The few people that actually join and try to sell, often quit at the first sign of rejection…
The industry is broken. While there will always be the top earners that push to succeed against the odds, traditional MLM face-to-face selling is not duplicatable on a large scale…
We do things differently.:
- We do not SELL to our friends and family
- We do not sell face-to-face, throw home “parties,” or do three-way calls
- We attract people that WANT to join our business
- We are 10Xing the “industry averages”
This website alone (on average) has one to three people APPLYING to join our network marketing team each day.
We do NOT do any of the strategies your upline is teaching you…
Network Marketing in the Digital Age
The network marketing business model works. It’s been going strong for more than forty year and is responsible for billions of dollars in revenue…
There is a market for this type of business model and there are companies out there with great products and services.
Our network marketing team is taking the benefits of the MLM model and combining it with proven digital marketing strategies that work in other industries.
For example we are leveraging technology, online publishing, sales funnels, email marketing, and online communities to attract and organize a digital marketing team of like-minded entrepreneurs.
To learn more about how we have people applying to join us (on autopilot), without chasing friends and family or doing things the traditional way, click here…