What is MLM marketing, precisely?
The answer depends entirely depends on who you ask. Seriously.
Speak to a top producer who is raking in an executive six-figure income and they will tell you something like this:
“Network marketing is the greatest opportunity in the history of the world for the typical individual without a lot of cash to invest to become financially free.”
Talk to someone else who has “tied” a couple of programs with success and you will hear something like this:
“MLM marketing does not work. The only people who make big money are the people who enter very early and get in at the top.”
So who is right? Who is wrong? What is the truth about this worldwide marketing model?
What is MLM Marketing ?
According to Wikipedia, MLM marketing is a way of doing business in which a sales force makes a commission not only for sales of products and services they personally generate, but also for the sales of others they recruit and bring into the business, which produces a downline of suppliers and a hierarchy of several leveraged levels of compensation.
Whew. What a mouthful. Let’s break that answer down to the ridiculous, shall we?
First, let me share with you right up front… since 1996 my wife and I have built five six-figure even multiple six-figure businesses working part-time in our spare time online. We have a team of over 11,000 active distributors worldwide in one network marketing company and a team of over 8,600 in yet another.
So I am a HUGE FAN of the industry. Here are a few reasons why…
- You pick the people you deal with.
- You can work from home part-time in your spare time.
- Work the hours you want to work… when you want to work.
- Give yourself an IMMEDIATE raise with tax savings.
- You can write your own first class ticket to success.
Sound good? Of course. So you decide to join a MLM marketing program and now what? What exactly have you gotten yourself into?
When you sign up with a MLM marketing company you are “registering” to represent and promote that company’s product, services and business opportunity.
You “register” by making a small financial investment (typically $500 to $1,500) to purchase your start up kit and a few sample product. You will then fill out or agree to being an independent contractor. In other words, you are not being hired by the company… you are signing up to become an independent business owner. So you will get paid ONLY when you move product through your business. If nothing sells, you don’t make a dime.
But the magic is YOU don’t have to do all the selling. You can also put together a team of active distributors and get paid a commission on their sales as well. This is highly leveraged income. Passive income. Retirement income.
Another way to look at this business model is to think of franchising.
Think about McDonald’s or Starbucks.
McDonald’s is among the largest fast-food companies on the planet. They have more than 33,000 dining establishments that serves more than 64 million people in 118 nations each day.
More than 80% of McD’s dining establishments are owned and run by independent company owner or service providers.
Now if YOU owned the master franchise, the mother-ship company, you not only earn money by selling burgers, fries and shakes from the 20% of the stores YOU personally own and operate … you likewise earn a small percentage on all the sales made by the entire organization including the other 80% you do not own or operate. This is what we called LEVERAGED income. It is the idea of making 1% from the efforts of 100 people versus earning 100% from the effort of one… you.
Let’s Crunch the Numbers for MLM Marketing
Let’s say you earn a $100 commission for selling a specific product and it takes you two hours of “work” to make a sale.
Break that down and your time is worth $50 per hour. Put in a complete 40 hour work week and you pocket a very respectable $2,000.
Let’s also assume… because you know what you are doing… you have also “recruited” a couple of people to join your team who likewise want the possibility to earn $100 per sale and you earn a good $10 check for every sale THEY make.
Now let’s say you have a MLM marketing team of 100 people. They each make 20 sales weekly — completely independent of your time and effort.
- YOU = 40 hours, 20 sales, $2,000.
- TEAM = 4000 hours, 2,000 sales @ $10 each = you get $20,000.
See the MLM marketing magic? You make money on the time and effort of other people. This is leveraged income vs. linear earnings.
So maybe an excellent way to answer the question…
“Exactly what is MLM marketing?”
… would be quote J. Paul Getty, among the richest men in his time:
“I ‘d rather have one percent of the efforts of 100 people than 100 percent of my own efforts.”
Exactly what is MLM Marketing? The Reality …
Here’s the sadly reality, from my own experience.
No matter how you slice it, the only way you will ever develop a highly lucrative MLM marketing business is to be willing to MASTER the art and science of sales, marketing and leadership.
Because MLM is a type of “direct sales” and nobody makes a dime till products and services are offered.
It’s that way in every business, not just in network marketing.
So the SECRET is to join a company, track down who is currently kicking butt and taking names… find out exactly what they are doing … and simply be willing to DO the same things.
Find a proven model and simply copy the model. I call it “monkey see, monkey do” marketing and it works.
- MLM marketing is a profession.
- Multilevel marketing can lead to fame and fortune.
- Network marketing is a leadership development platform.
- Network marking is fun, fast and interesting.
- MLM marketing is a proven “million dollar” business model.
So from my perspective, this industry offers the potential to literally create both time and financial freedom.
But there is a dark side. The dark side is approximately 95% of the people who start a home business never make a profit.
Most quit within the first 90 days. And most will blame the industry.
But if YOU are willing to learn new skills and are both willing and able to “get in and get busy” – you, too, can become of the top 5% who are living a life most people only dream of.
The Key to Success is Learning How to Market…
- We don’t chase family and friends
- We generate leads on complete autopilot
- We don’t sell, we promote
One of the hardest things to learn about making money with your home based business should actually be learned BEFORE you decide to join any company. Bottom line – you have to learn how to market and have a marketing plan in place BEFORE you ever join a company. Why? Because if you don’t have a PLAN to succeed, then by default you have a plan to fail. Plain and simple. The key to having success in this industry is marketing. Marketing. Marketing.
Not prospecting. Marketing in general and attraction marketing in particular.
Mike Dillard popularized this concept of “attraction marketing” and using “funded proposals” in his Magnetic Sponsoring course many years ago. But the challenge was he taught you what to do… but now how to do it. Still, you should most definitely invest in this course BEFORE you ever sign up to be a distributor. Seriously. Or at least sign up for the FREE 7-Video Bootcamp because you really need to know both what not to do and what you should be doing to put the odds of success greatly in your favor.
Here’s What You Want To Do Next
As I mentioned, I suggest you first take a close hard look at the various ways of building a profitable MLM marketing. Take your time and go find a half a dozen people who have already succeeded and study what they do and what the do to continue to build their business. Now, at this point, be honest… can you see yourself doing the same things? If not, why not? And if not… find a different leader using a different marketing system and keep looking and digging and doing your due diligence first… before signing up… because you need to have a plan.
Plan your work, work your plan.
Me and my wife teach you how to make money on the fast track by creating multiple streams of income using the internet.
We leave nothing to chance and we offer a TON of different ways to market your business. Check it out and let’s get started…