You might be asking yourself… What is MLM? MLM stands for Multilevel Marketing and it is one of the fastest growing and most misunderstood ways of selling products today.

Through the 80’s and into the 90’s more than 100 billion dollars worth of products and services had been moved through MLM companies. This figure has continued to skyrocket as we enter into the 2nd decade of the 21st century!

What is MLM? Simply put it is a form of marketing and selling products.

Marketing refers to moving a product or service from the manufacturer or provider to the consumer.

Multilevel refers to the system of compensation provided to the group of people responsible for the product or service being delivered to the customer.

“Multi” means multiple or more than one. “Level” means generation.

There are 5 commonly used ways of getting products and services to customers:

Retail: For example the drug store, the super market where you go into a store and buy something…

Direct Sales: For example Tupperware, Avon, Traci Lynn Jewelry…

Multi level Marketing: This should not be confused with retailing and Direct Sales which commonly is.

Mail Order: This can be an MLM but mostly is included in the Direct Sales category.

Pyramid Sales:This type of sales(scam) is to often confused with MLM and network marketing. The fact is, Pyramids are illegal while MLM is not. The main reasons they may be illegal is their failure to move a product or to provide a valid service.

If a product is not sold or hardly ever sold, how can you even call it “marketing”, let alone “Multi level Marketing”. It may be Multi level, but they are certainly not marketing any real products or services!!!

Most objections people have about starting a Multi level Marketing business are due to not realizing the difference between MLM, Pyramid Sales and the Direct Sales methods of marketing.

This is understandable because most of the more reputable MLM companies belong to the Direct Selling Association.

Some of us have been conditioned to think of MLM as door to door direct sales programs because for many of us our first encounter with them was when a distributor knocked on our door to sell us something.

Other have been conditioned to think of MLM as a pyramid scheme due to the multi-level nature of the referral compensation. But in actuality this is very similar what many traditional companies do to add valuable new people to there sales force.

There are some features that differentiate MLM from Retail and Direct Sales companies. The most significant difference is that in MLM you are in business for YOURSELF but not BY YOURSELF.

The most common misunderstanding about MLM is the notion that you HAVE TO sell retail to be successful.

You may sell if you want to or have to due to your particular program procedure, but in regard to making the larger sums of income, the real success is in building the organization.

MLM is an industry that rewards leaders who truly mentor those under them. Let your sales come as the natural result of building the organization.

The word “selling” triggers negative thoughts in the minds of about 95 % of all people. In MLM you don’t need to “sell” the products in the traditional sense of the word.

However, the PRODUCT DOES HAVE TO MOVE or NOBODY GETS PAID.

When you build an MLM organization, you are actually building a network through which to channel your product’s or services.

Retailing is the foundation of Network Marketing. Sales in MLM or Network Marketing come from distributors SHARING with their friends, neighbors, relatives and sometimes co-workers. MLM is about strength in numbers. Network Marketing or MLM is building an organization in which a lot of distributors all retail a little in an organized and efficient manner.

So, you see, its not going door to door every day calling on strangers. Another point that differentiates MLM from Direct Sales is the SPONSORING of other distributors. This is called RECRUITING and it is the true strength of MLM.

When you SPONSOR someone, you are making a COMMITMENT to TEACH them how to do what you are doing, building a BUSINESS OF THEIR OWN. You now become a mentor to someone else. Sponsoring is what makes a Multi level Marketing business so different and makes it grow.

As your organization grows, you are building toward becoming an INDEPENDENT SUCCESSFUL BUSINESS PERSON. You are becoming your OWN BOSS.

With Direct Selling companies you work for the company. If you decide to quit that company and move to another area, you end up having to start all over again.

In almost all of MLM Programs you can move to another area of the country and sponsor people without losing the volume generated by the group you left behind.

In MLM Programs you can make a lot of money by building an organization as your primary function. You can then recruit talented people who may be more sales savvy to move product. It is this mix of people and talents that allow the best MLM groups to be flexible and successful as they leverage each other.

A Multi level Marketing Organization is not a pyramid scheme. The pyramid is built from the top down and only those in at the very beginning can ever be near the top. And the price of the products or services get every step higher and higher, leaving the people at the bottom broke.

In MLM businesses everybody starts at the bottom and has the opportunity to build a large organization, even larger than his sponsor’s organization if he wants. If you can leap-frog your upline, then it is not a pyramid scheme!

MLM Marketing is the solution to the distribution costs of the most companies because there will be no more channels between the producer and the consumer. And the most part of the benefit can be paid to the distributors.

Learn the secrets of the top Network Marketers here:
www.onlinemarketinggenius.biz

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Author’s Bio
Jason Lamb has helped many who have followed his training materials to achieve a higher level of prosperity in MLM. To learn how you can takeover your MLM company and dominate this industry online, visit Jason Lamb’s Online Marketing Secrets Revealed.