Multi Level Marketing or also known simply as MLM has been around for so many years now. A lot of companies practice MLM and still some people can’t fully grasp the essence of MLM. Maybe it will be much easier if we site an example. One of the pioneers of MLM let me present you – Forever Living.
Most likely you have heard of them. It has been over 25 years when Forever Living Company started developing and marketing health and beauty products. Some of these products for specific target audience some are not. There are also literature and tools to help consumers build their profitable business and gain financial growth.
As a part of the Multi Level Marketing (MLM), they are still one of the fastest growing companies today. As a matter of fact, when we talk about MLM, it is not an ordinary industry but just a method of marketing for transporting a product from one point to another. This concept was embraced by many and swarmed so fast. Early manifestation was felt at the 80’s. It was criticized a little and received many negative feedbacks in the early 90’s. MLM
Despite this, many people still tend to mistake MLM with what we call pyramid schemes. Pyramid schemes are definitely illegal and not supported by law. But how would we know the difference? The easiest way to differentiate a pyramid scheme is simply asking your self two obvious questions. First is what is the product being catered? Secondly, where will this product eventually go? Of course these products must move from one point to another.
Multi Level Marketing transports product on different levels for example by its label. Let me explain how this works. Let’s have Forever Living as a sample company for this one. In MLM you are like a solo businessman. You are the one who actually purchase the products straight from the dealer at wholesale amount.
Product the goes from person A to person B. You could just use these products for your own consumption or you can simply sell them again at a lower price (retail price) to make the actual earning. The most usual misconception is that you are obliged to sell it in retail to be successful. This is definitely untrue. Of course, it depends on the company you’re under.
Most of the MLM programs success comes from constructing the structure or the organization. The sales will arrive as an aftermath. If you are already sweating, that’s no surprise since we have cited the word sales already.
This word sales will surely generate a lot of negative reaction. So if you are truly considering Multi Level Marketing as a career path, the very first thing you should do is simply replacing the word sell in and sugar coat it with a much lighter word share. Tha’s better isn’t it? Sharing is a good thing and we all have that trait innate to us since we were young. The simple concept of sharing to be successful in this field is the actual truth for MLM.
As you create your organizational body, what you are really doing is constructing a network for the product or service that you cater. The sale of a certain product will come from the distributors when they share the product with other people. This includes family members, friends, neighbors or even classmates. So from a single thread it is now similar to a finely woven spider web.
As you – the spider continues to make your web bigger; it will continue to expand in all directions. This is how MLM functions. While you are successful in meeting people who are actually interested in being part of what you are doing, you could add them in your ever expanding network. You then will conduct their training; assisting them to create their own we just like yours. Now that’s the essence of networking.
Now, from a simple network construction, the company has now grown to an actual network of people. Each thread in this web that contributes to your gigantic network will eventually go back to you.
Eventually, you become the person on top. You are now the business leader who is efficiently giving direction to hundreds or even thousands of people who are by this time busy networking your product all over the place.
Just like Forever Living, it depends on how particular your program is set up. Then you are financially affected by every person’s successful network of your product. I reality, the most outright difference between MLM and pyramid schemes is that virtually anyone can enter your network program and eventually end up just like you – on the top. In a pyramid scheme on the other hand, the top remains on top and that’s just how it goes.