MLM: Succeeding in MLM

MLM or Multi-Level Marketing can be defined as any system or process set up that allows any customers of a service or product to also become a sales representative for the company and rewards them further for this by giving them a reward for not only the direct sales/customers they establish, but also a percentage of any indirect sales made often many levels down. In other words you can buy for yourself and make money by selling and introducing others and have them repeat the process. It can also be called network marketing, because MLM sets up networks of people or teams working together for joint financial reward.

Many companies choose this process to sell their products for a variety of reasons. Firstly they don't have to spend money on sales representatives or advertising costs. There are huge numbers of companies involved in MLM and it has become accepted as the best way for small companies to complete against large multi-nationals and have any chance of grabbing market share from such strong corporations. Some successful MLM with a good reputation include companies like Tupperware, Nurtimetics and Avon. Other MLM's however have burnt the customers base - not because they didn't have good products, but because people brought their marketing system yet received little or no financial reward.

Because of this many people wrongly allege that MLM is solely a pyramid marketing system and therefore automatically unethical. Such a view is misleading. MLM rewards those who not only bring in customers but also rewards them if they can teach others to do the same. However where many people get burnt in MLM is they "buy" the marketing system and not the product. If you find yourself joining any MLM only for the money making potential you risk being burnt. If you don't believe in the product, if you don't use the product yourself, how can you ethically ask others to do the same?

MLM is ethical if YOU believe in the product, if YOU use the product and YOU believe others can do. Where MLM gets a bad rap is when people buy a product they don't use for themselves. If they are then unsuccessful at creating a huge downline they bail and leave. However if they brought the product for the products sake they are unlikely to ever leave because they will continue to use the product day after day.

Finally does MLM have potential. The answer to this is yes. Where many people fail in MLM is because they fail to understand the laws governing the process. The hardest thing in MLM is to get first few customers/ team members. This is because you are using your efforts alone. However when you get your first team member suddenly you have doubled your efforts. As the team grows the potential to leverage your results becomes huge. Many people give MLM a bad rap. because they fail to understand this law of increasing returns. That the hardest part is going to be at the start and that it will take TIME to be successful. There are also those individuals who are born salespeople who are going be instantly successful and these are often the 'banner boys' for the company. But the truth is the vast majority will only have success through hard work and not talent. This doesn't mean they shouldn't be involved in MLM it just means they have to realise their own limitations. The second step where most people fail in MLM is that they fail as a manager. The fail to motivate their team and teach their team to succeed. They fail to educate their downline.

The other law is it is better to get into an MLM as soon as possible, every second you delay you are allowing others to snatch potential customers from you. Remember every new customer is also a new competitor. Every market has some sort of limit, even the best product will eventually reach a saturation point. This doesn't mean that only the earliest members can succeed - in fact sometimes the most successful join mid-way through this growth curve, it just means it becomes harder.

The explosive growth potential in MLM's is what can make millionaires in a very short space of time, but such results need good marketing from you, they need you to be a team builder, they need you to find a sponser who can help you to succeed.

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