What is Mutli-Level Marketing (MLM)

                                                                                        What is Mutli-Level Marketing (Hindi)

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                                                                What is Mutli-Level Marketing

Multi by level marketing, or MLM, is a form of direct sales home business in which independent representatives sell products or services from a company to an end consumer. The multi-level aspect refers to each representative’s ability to recruit and train other representatives to start their own business, and earn a commission on their reps’ sales.MLM Explained

MLM Terms to Know:

The Plan: Most MLM reps refer to their program as “the plan,” which outlines the company’s marketing and compensation (how you earn money) plans.

Recruit: A recruit may also be referred to a team member. It’s a person brought into the business by a sponsor as a new member. Recruits are trained by their sponsor or “upline” (see below) representatives.

Downline: Your downline contains the recruits brought in below you. This can include members you’ve recruited as well as those your recruits have brought into the business.

Upline: The upline consists of the representative sponsors who came in before you. For example, if rep A recruited rep B, who recruited rep C, who recruited you, your upline is C, B, and A.

Compensation Plan: Similar to the plan, this outlines all the ways reps earn money. To be legal and not a scam, the focus when it comes to earning money needs to be on the sales of products and services, not on recruitment of new members. Along with commissions on sales made by you and your team, many companies pay bonuses and increase commission splits based on volume of sales.

Network Marketing: Multi-level marketing is sometimes referred to as network marketing as well.

Is MLM Legal?

There are many myths and misconceptions about MLM, including its legality. For an MLM to be legal, it needs three things:

1. A quality product or service

2. Income is earned off sales of products or services

3. The focus is on sales, not recruitment alone.

A program with no or a low-quality product, or with a focus on getting paid per recruit, could be an illegal pyramid scheme. However, don’t let the term pyramid throw you off. It’s not the shape of the organization that makes it illegal. In fact, most companies have a pyramid structure with a CEO at the top, VPs next, mid-level managers etc. What makes an illegal pyramid scheme is the lack of a quality product, or that income is earned on recruiting, not commissions from sales.

What About Saturation?

One strategy some sketchy MLMers use to recruit is by giving the impression that if you don’t join now, you’ll miss out. They tell you that if you don’t get in early, the market will saturate and therefore, there won’t be anybody for you to sell to or recruit. But that myth is nonsense. First, how many people do you know and how many buy from or are in an MLM? Odds are very few, which means there are many potential customers and recruits. Further, every day there are people who turn 18 and enter eligibility to join an MLM company. Finally, new people are born every day, which means in 18 years, they’ll be more people to sell to and recruit. The idea that you’ll run out of customers or potential recruits is bunk.

How to Become Successful in MLM

Success in MLM requires several things:

1) Find a company that is a member of the Direct Selling Association, which requires members to uphold a code of ethics.

2) Choose a product or service you like and can get enthusiastic about sharing with others. A consumable product is often the best bet so you can get regular re-sales to repeat customers.

3) Study the company’s history and compensation plan. Understand how the money is made and recommendations for marketing your business.

4) Treat your MLM business like a business. Despite what you might hear, MLM isn’t a get rich scheme. Like any business it requires you to define your target market, reach out to your market, and make sales.You have a sponsor to help you, but she isn’t going to do the work for you.Your success in MLM or any business is based on the quality of work you do.

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