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Multi-level marketing is the
biggest growth industry in the 1980's. It is the industry that has
made corporate giants of Amway, Shaklee, Mary Kay and Herbalife.
It has been termed as the last true rags-to-riches opportunity
left in North America, and its ability to bring enormous incomes
to almost anyone is legend. In fact, it is expected to make more
new millionaires by 1990 than any other industry, and soon after
will be the single most popular method of bringing new products to
the consumer.
The first multi-level companies sprung up in the 1930's, but they were
dinosaurs compared to modern marketing strategies. It wasn't until
the mid 60's that MLM gained international prominence. In 1985, it
is estimated that $5 billion worth of new products will be sold by
this method.
MLM offers the opportunity for anyone to operate their own business. For
less than $50 in many cases, you can get involved with a
legitimate MLM program and earn from $100 a month to hundreds of
thousands of dollars a year. Most incomes naturally fall between
those two extremes, but the earning potential in almost any good
company is virtually unlimited. The only limits are set by
marketer himself, by his time, energy, persistence, and faith in
his product the people he works with. A superstart in MLM need
only be a caring, sharing person, energetic and highly motivated.
Some of the most amazing success stories in MLM have been
hard-luck Harry's and bored housewives with no previous marketing
or sales experience.
The root of MLM success is the sponsoring of new people into their
businesses, much in the same way sales agents find new retailers
to handle their products. Successful organizations such as Amway
and Mary Kay have thousands of distributors, but even these had to
start with one or two motivated people sponsoring a few other
motivated people.
The ultimate test of an MLM company is the quality, price and reusability
of the product. A good firm is usually founded on products with
rapidly expanding popularity, day-to-day use in the home, and a
regular repurchase required. They should be better quality and at
least as competitively priced as the same goods bought in stores.
Here are the barebones mechanics of MLM
1. You become involved with an MLM company first as a customer because the
product offers substantial quality and savings.
2. Because the products are good, you tell others about them.
3. Rather than send these people to your distributors, you become a
sponsored distributor yourself for these new people. And if these
people, let's say the are five, know five other who will buy the
product, you have 25 people buying products through you.
4. If these 25 each know five people, you have 125. If those 125 know five
people, you have 625 at the fourth level buying through you in a
distributor's network you built from only five people. If these
people purchased only $30 month worth of products, that would be
$300,000 in gross sales, and you could expect to earn at least one
quarter of that figure, probably much more.
5. Commission and bonuses vary with product and company, but most go
through four to eight levels, and have two or three levels at
which substantial higher commissions are paid. This encourages new
distributors to build those levels.
6. Some of the networks-inside-of-the-networks will end at certain levels
with people buying but not sponsoring new people. And some will
involve more than five people. Distributors will always be your
best customers and biggest moneymakers.
7. The best companies are the blue chip firms offering a wide range of
products such as Amway and Shaklee. New ones emerge all the time
and some of the faddier MLM companies die quickly. but they can
still make good money quickly for distributors with established "downlines".
Choose your product line carefully, recruit heavily and always expand your
business education as you grow. MLM is a big field with big
rewards for anyone, absolutely anyone who can commit themselves to
success at any cost. |
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