Multi-Level Marketing Industry – What You Must Know
Today we are going to explore the multi-level marketing industry. What they are, how they work and if they are still a viable way to make money.
We will also explore some other ways to make a living online that we have personal experience with and which we highly recommend.
Most articles you read about MLMs try to sell you something and there is always a catch. But this article is going to bypass that and just explain how everything in the niche works. You will know what is good and what is not so good so sit back and let’s start by getting an explanation on just what the MLM industry is.
What is the Multi-Level Marketing industry?
This is a pretty easy question to answer and a more difficult one all in one as it really is two questions. The first question is, what is the multi-level marketing (MLM) industry, and the second question being what is MLM.
Let us start with the second question first as it really answers the first question also. Because after you understand what MLM is you will then understand what the industry itself is.
Well, that was already confusing so let’s take a breath!
What is MLM?
To boil it down into a nutshell these kinds of companies have two forms of compensation paid to their members. The first one comes from profits from selling goods or services and the second comes from a down line of people having been recruited and placed below you in what is called a level.
Some of these companies pay differently on each level and many of them have incentives for extra discounts on products purchased and such. But that is all window dressing on top of the two primary revenue sources.
These types of companies are also called pyramid selling, referral selling, and network marketing.
So, members have many different names depending on the company but for this article, we will call them distributors.
These distributors both have to buy products and or services at wholesale prices and then sell them to their customers at retail prices thus making the difference in monies as profits. But that is not all they do.
They are also asked to be recruiters and bring in new people to become distributors and when they do that the new distributor is put on a level downline from the recruiter.
Now, this recruiter will get a percentage of his new distributor’s profits on all sales this new person makes.
Pretty simple right? Well, no it is never that simple but it can be done and people do it every day and make huge amounts of money doing it. But it takes a huge amount of dedication and work to get to a level of that height in any of these companies.
What is the MLM Industry?
The simple answer to this question is, of course, all the companies that are in the MLM marketing business.
Amway, Avon, Herbalife, Mary Kay, Nature, Vorwerk, Perfect and the list goes on but you get the picture.
These are some really well-known names in the product business and they have been around for a very long time and this should tell the story of if they actually do work or not.
The key to what we just said was in the product business, as each and every one of these companies has outstanding products they stand behind. These products come first and foremost as without that they would be nothing but an illegal pyramid scheme and there are plenty of those out there for sure!
A company that promotes the profits from the recruiting side is in trouble from the beginning as they are a false company and they always fail in the long run. You have to have a product that stands alone to make this kind of business work. Period!
Is it profitable?
Now that we know what MLM is and why it is what it is, can you make money at doing it?
That is really up to how well of a salesman or woman you are on top of how well of a recruiter you are.
One thing cool about most of these companies is that most of the time you will get your new recruits through selling the products or services.
The odds are in your favor of recruiting customers as new distributors, just as many people, like the idea of not only getting their product wholesale instead of retail, but also they can make money with their own downline while being a customer all at the same time.
If you use a good bit of products for personal use like Amway distributors seem to do you cannot lose.
Now on the ultimate level for those who are really driven, you can make a fortune with some of the better-known companies like Mary Kay. You can become the upper one percent which is about as independently wealthy as it gets and a pretty good lifestyle but as I said, you must be driven!
Our take on MLM companies
We feel that if a person sticks to the MLM companies that have a proven track record and has what it takes to be both a seller and a recruiter, they sure can make money and even make a living working at MLM.
We also feel that for the most part the average person, even the good ones, cap out early in these types of programs. And while many of them claim they do it just to make a little bit on the side and get their products for wholesale, for the most part, it is a difficult line of work and one you really need to love doing.
Now we mentioned we would talk about another way to make a living working online and that is by building your very own online business that you have total control over and one where you control your destiny!
This article is getting a bit long-winded so if you are interested in a free look at our number one recommendation for building your very own successful online business go ahead and take the free tour by clicking here!
Thanks for checking out our article on multi-level marketing and we hope it helps you understand how the business works and what is involved in working an MLM program.
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