What is Network Marketing and MLM?Posted by Phil Sanko on Apr 15, 2012 in Fundamentals, Home Business Blog | 1 comment
Thinking About Joining a MLM?
So today you had a friend or family member approach you about their new MLM or Network Marketing “business opportunity” and you’re probably thinking the same thing I did… What the heck is MLM or Network Marketing, and am I getting myself into a huge SCAM? First of all, good for you for doing your due diligence and making sure this type of business is for you (and is actually a LEGITIMATE business). Secondly, I’d like to explain a little more about this industry from my perspective.
Here is my definition of Network Marketing and MLM in my own words. MLM (Multi-level Marketing) is a unique way for any “average Joe” in the world to start and run a business without the unnecessary high start-up costs of a traditional business. I have many family and friends who own traditional businesses and, by all means, they make a very good living. However, the one thing everyone in traditional businesses say is that the start-up capital (and risk of losing that initial capital) was extremely burdensome and stressful.
For example, my own father started up his business with with $30,000 of his own capital around the age of 30. If he was unsuccessful at growing his business, this could have put him (and my entire family) in a bad position. I’m 27 years old right now and I can’t fully comprehend risking that much money at this point in time. I have a feeling I’m not alone in that thought.
This Is Why I LOVE Network Marketing!
The beauty behind Network Marketing and MLM is the start-up cost is usually minimal – anywhere from $50 to $1,000 on average. You are basically paying an initial fee to affiliate with the company of your choice so you can be an individual distributor of that company’s product or service. Most MLM companies will also require you to have a monthly subscription or auto-ship of their product or service. Often this auto-ship can become free once you have a certain amount of customer volume.
MLM Is All About Leverage
Another awesome part of network marketing is the concept of leverage… This is truly where the income possibilities are endless. So what am I talking about? The ultimate goal of network marketing is not just to have lots of customers. The goal is to have a small, loyal customer base and to find others who want to join your NETWORK of distributors. So, to keep it simple, you can get paid for two activities: 1) Growing a customer base, and 2) Recruiting others and showing them how to get customers AND recruit. When you recruit new distributors, you get a percentage of any customers they gather. Even better, if that recruit finds other people to join their business network, you get a percentage of their growing network. So as you can imagine, if you grow your network wide and deep, the income possibilities are literally endless!
Network Marketing Is About Solving Problems
Well actually, any business is about solving problems. But in Network Marketing, it is absolutely imperative to select a company that solves a major problem for a broad market. I am very passionate about my primary company and I have used it as a tool to change many people’s lives.
My advice for you is 1) Pick a company with a product/service that you totally love, and 2) Pick a company that you think is easy to talk about with any type of person.
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To A Blessed Future,
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