Is Multi Level Marketing the Answer?
With
a world recession in full swing it seems as if I am being inundated
with offers to join the "newest and greatest ground floor opportunity
ever!" When times get tough people start looking around at
different opportunities. Nothing wrong with that but is multi level
marketing the answer?
In
this article I hope to answer that question.
There
are many very successful multi level marketing companies. Having
been involved with MLM companies I have a fair idea as to how they
work.
I was
recently involved with an MLM company - let's call it company M.
I believe
company M's system is fairly typical of most MLM structures.
The
way multi level marketing companies operate is that they first and
foremost have a product, or a range of products that are supposed
to have a unique point of difference. In company M's case the majority
of their products contain an extract from the specific tree, native
to Australia that is sustainable. Company M's products are said
to be 100% chemical free.
Customers
sign on and commit to purchase a certain number of points (product)
each month and are in turn encouraged to recruit new customers.
A new customer pays a small sign on fee (some MLM companies have
much bigger fees) and must commit to buying a certain number of
product points each month.
Commission
is paid on purchases made by the clients enrolled in your down line.
Once
8 new customers have been personally enrolled you move up in status
and your purchasing commitment is increased.
The
focus also changes at this new, higher level with the emphasis shifting
to growing the business. Now you must help each of your recruits
and encourage them to attend meetings and also recruit eight new
customers.
The
higher you get the greater the commitment to company M and in order
to qualify for the substantial bonuses monthly targets have to be
met on an ongoing basis.
A magnificent
system that ensures the senior members are kept actively involved
in promoting the company if they want to keep reaping the benefits
of the business.
And
this is where a lot of people have a problem
with MLM companies:
You have to keep recruiting - not always appreciated by friends
and family!
You have to buy more and more product (sometimes impossible to
consume) each and every month.
You have to attend all meetings (or at least a certain number)
to meet monthly goals.
Encourage and cajole people into making lists and following up
with them to get them into the fold.
Continue with this pattern forever and a day.
There
is a lot of money to be made on legitimate multi level marketing
but it is not as easy as you may be led to believe.
In
many cases those making the big money have forgotten the reason
that they initially joined the company - because of a quality product.
Many only join for the business opportunity, and not the quality
of the product, hence promoting something they do not necessarily
believe in.
The
success of your business very much depends on your effort and the
quality of the people you recruit.
Is
multi level marketing the answer? Only if you join a reputable MLM
company and are prepared to work hard and accept that you are not
going to make a lot of money overnight. Like any business you have
to work at it. The harder you work the more you will be rewarded.
Lawrence
Bredenkamp is a self employed Internet Affiliate Marketer.
His
Internet Business helps
people achieve their goals in his areas of expertise. A real straight
shooter you won't hear a whole lot of lame duck stuff or heavy sales
pitches from Lawrence. Just straight, honest, down to earth truth
- as he sees it. Visit his website http://www.legit-home-biz.com
website for more information on working from home and making a living
doing the things you are passionate about.
Article
Source:
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