Introduction
Multi-level marketing is the term used to explain a type of marketing system a company may use to sell and distribute it's products. It is not a pyramid scheme or a scam like many people think.
Merchandise is sold directly to the consumer by affiliates of the company. These affiliates are not employees of the company but are independent agents who earn a commission on their individual sales of products. They also receive a commission on the sales of the affiliates who they have recruited to the Multi Level Marketing business opportunity, better known as downlines.
Recruiting and Sponsorship
Recruiting an affiliate simply means that they have introduced an interested person to the Multi Level business opportunity and that person has joined the business under the referring affiliate. The referring affiliate is usually the MLM sponsor of the new recruit but not always.
Multi-Level
The sponsor's job is to teach and train new recruits on how to sell products and how to encourage other interested opportunity seekers to join the company. This is where the multi-level term comes from. Once an affiliate recruits another affiliate, you then have more than one level in the sales organization, hence the term multi-level marketing.
LeveragingAlthough usually you are not required to recruit other people into the MLM opportunity to remain an active member, it is to your benefit to do so. On your own power, it would be difficult (but not impossible) to make enough sales to provide a full time income for yourself but if you are earning a commission on the sales of other agents you have recruited, you will earn a lot more money. This is called leveraging.
Not a Get Rich Scheme
Many Christians wonder if it's okay to join a mlm-home-business. The answer is yes if you have the right attitude. Multi Level Marketing is not a get rich quick scheme. MLM is a business opportunity. It takes skill, continuous learning, and a lot of hard work to get your business off the ground. Like any traditional off-line business, it takes time and money to become successful and even at that, there is no guarantee. Many, many off-line and online businesses fail every year.
MLM has received a bad name in years past as people expected to make quick money overnight and did not realize the effort, expertise, and patience required to be successful and consequently blamed their sponsors or the company for their failure.Affordable
Multi Level Marketing is one of the least expensive ways to get started in your own business. Most MLM businesses can be operated from the comfort of your own home. This cuts back on overhead expenses and gives you the flexibility to work when you want and where you want. The hours you devote to your business are in your control. Keep in mind that your success is in direct proportion to how committed you are to building your business. Also, as an independent affiliate, you are responsible for your own taxes, overhead, inventory, advertising, and entrepreneur education.
Training
Most Multi Level opportunities provide some free training and resources to build your business. As well, sponsors act as mentors to guide and lead you until you are familiar with company procedures, policies, products and conference schedules. MLM sponsors should help you along until you are in a position to be a leader yourself. That is when you are ready to start recruiting and training affiliates and begin building your own organization.
Residual Income
Once your personal Multi Level organization starts developing and repeat sales from satisfied customers begin to happen, you are in a position to begin receiving residual income. Residual income is what every MLM agent is looking for. The final payoff for months (even years) of hard work; promoting, teaching, sharing, selling. This residual income is a monthly recurring commission on the sales from your entire organization. So as you can see, Multi Level Marketing is obviously not an overnight quick buck. Anybody that teaches otherwise, run from them. However, the right MLM opportunities can provide a very comfortable income if you are willing to sacrifice, toil and believe.
