If you’re going nuts trying to find a reasonable answer as to what is mlm and how can you make money in this industry, then this is just the thing you need to read to make it much clearer for you.
So, what is mlm and is it really legit?
If that’s the question that’s playing on your mind as you look for real answers without any fluff as to what is mlm all about, then this short article is going to help you immensely. You may even find it a little bit disturbing…
You see, most people get it wrong.
Even the ones who are in mlm still don’t fully grasp what they’re really into and how to make money in it.
If you listen o all the naysayers, they would have you believe that all mlms are scams and all products are overpriced and worthless. If you listen to all the mlm addicts, they’ll tell you that mlm is the greatest thing since sliced bread and that they know someone, who knows someone, who knows someone who is making a seven-figure income in mlm.
So, what the truth?
It’s somewhere in the middle. Let me explain…
The Real Deal Behind the Curtain Look at What is MLM
If you’re tired of getting the runaround of what mlm is and isn’t and you finally want the truth – well here it is.
MLM refers to those network marketing companies that pay out in levels – thus the term multi level marketing.
As a distributor for an company that uses the mlm compensation model, you have to build a large salesforce that’s able to duplicate success. For your efforts and that of your salesforce, you get a small percentage of your team’s sales.
Read this part carefully…
The biggest pro of joining a network marketing company is that you’re in business for yourself, but not by yourself – you’ll always have someone in your organization that can help you. Not to mention that the product is already chosen for you and all you have to do is get enough eyeballs on either the opportunity or the product.
In case you’re wondering, network marketing is sometimes used interchangeably with the term mlm (heck I do it all the time). However, they are not one and the same.
Network marketing is marketing within your network i.e. friends and family.
Network marketing falls under direct sales because it is direct selling. MLM in the real meaning of the word is getting paid on multiple levels because you’re building an organization on multiple levels.
This is very important to understand because a lot of people, even those within the industry, label a lot of companies as mlm when in fact they’re not.
Are There Scam MLM’s?
There are scams in every industry and the home business industry is no different.
There scam programs that use the mlm compensation model but these programs are not true mlm companies- they just happen to use the mlm recruiting style and pay on multiple levels.
How to Spot an MLM Scam
First of all, the biggest telltale sign of an mlm scam is that there isn’t a viable product. When I say viable I mean a product that real people would buy at that price-point even if there’s no business opportunity present.
You may want re-read that again so that it really sinks in. Many companies have got themselves in hot water and even closed down because they have products that no real human being would buy at the price there selling it for- unless they were distributors for the company.
If you want to be taken seriously, you have to really give some thought into the company you’ll be partnering up with.
What is the Best MLM Company?
There are thousands of companies. The Direct Selling News puts out a list every year of top network marketing companies based on revenue. You can learn more here about that.
When you’re wanting to know what is mlm because you’re seriously looking to join a company, then you really want to take into consideration these four things:
1. The product – There must be a viable product/service Period. There are lot of yahoos who say product doesn’t matter and these same people are the first ones to scam you out of your hard earned money. If anyone tells you the product doesn’t matter, run far away from them and hide your wallet and your children.
2. The company – Does the company has momentum? Is the company on an upswing, holding stead or declining? It’s easier to get people interested in a company that has a lot of momentum and energy going for it. You typically find this kind of environment when a company is fairly new or when a new product/compensation is launched.
This doesn’t mean that you should join start up companies, because you really should wait til the company’s at least two years old since most companies go out of business within the first couple of years.
3. The Leadership – You also want to look at who’s heading the company. Do they have a history of making good company decisions? A history of past business failures?
4. The compensation plan – It goes without saying that if you want to know what is mlm, you also want to know how to make money in this industry.
The typical mlm compensation plan requires you to sponsor a large sales force in order to make any decent money. This also means that you’re going to be required to be on some sort of monthly autoship of products.
Depending on the type of compensation plan, you may be required to meet certain volume quotas in order to earn your full commission check. This is what a lot of people refer to as garage qualified because distributors order product just to get their full commissions.
So before you join that mlm, make sure you know what is required of you in order to get your full commission check. Make sure you’re willing to commit to the monthly autoship.
Ready to Join an MLM?
By now you’re either ready to join an mlm or you’re looking for alternatives. There are many, many ways to make money from. Network marketing (mlm) is just one of the many ways to do just that.
Myself and other people are successfully doing a hybrid model – a combination of multiple business streams – typically affiliate marketing and network marketing.
Having in place a marketing system makes it that much more easier to make multiple streams of income. There’s also something more that’s making people a lot more money in network marketing than ever before…
The Emergence of High-Ticket Single Tier Affiliate Programs
The biggest thing to come around in the network marketing industry are single tier affiliate programs that pay out quite handsomely.
I’m not gonna bore you with the history of single tier affiliate programs in the network marketing industry, but I will say a lot of them got their start in the business education, travel,and financial industries in network marketing.
In fact, there’s no lack of network marketing travel companies still around, but there’s only a couple that have a high commission structure.
In order to make good money, you do not have to recruit a salesforce. A few sales from a high ticket program can help you make a lot more money a lot faster than in a typical mlm.
If you’ve got goals for you and your family, nothing can help you achieve those dreams a lot faster than making bigger commission checks with fewer sales.
You’ve got a lot of choices to choose from. You can solely do an mlm or join a network marketing company that’s doesn’t require heavy recruiting in order to make money.
You can also build a complete business and do a hybrid method so that you’re building a solid business on a stronger foundation.
What is mlm if you don’t have choices – and you can now see clearly that you do.
To mlm or not to mlm – that is the question you can only answer.