What is Multi-level
marketing other wise know as MLM?
MLM is a purported income
opportunity, in which people recruited into a pyramid of participants
make ongoing purchases of products and services, and recruit others
to do the same, and they still others to do the same, etc.- in an
endless chain of recruitment and and personal consumption, in order
to qualify for commissions and bonuses and to advance upward in the
hierarchy of levels in the pyramid. Product purchases become the
means of disguising or laundering investments in what is in fact a
product based pyramid scheme.
Prospect are typically lured
into the scheme with exaggerated product and income claims. And
because the pay plan is heavily stacked in favor of those at the
highest levels in the pyramid, the vast majority of participants
spend more than they receive and eventually drop out, only to be
replaced by a stream of similarly misled recruits, approximately 99%
of whom are likewise destined to experience loss and disappointment.
What is a pyramid scheme?
A network marketing
opportunity to get rich quick off the payments of others who join
the organization. Network marketing isn't built on simple
mathematics where many losers pay a few winners. Network marketing
isn't a opportunity to get rich quick. Period.
How to find a good MLM
opportunity.
1. Make sure the Network
Marketing distributors aren't forcing the sale of a large amount of
product or services, To qualify you as an MLM distributor for
commissions. An amount over $500 is very suspicious. Good MLM
companies don't require a lot up front when you start as an MLM
distributor.
You need products to sample
yourself and to learn to sell, so not having any product purchases to
a shaky deal.
2. Network Marketer
Distributor personal monthly purchase requirement (qualification) is
no more than is comfortable for a MLM distributor and his family to
consume each month. Play it safe, if your Retail Customer's sales are
counted as part of your monthly requirement. Remember a customer does
not belong to the pay plan nor do they make money.
3.Make sure the company
actually emphasizes sales to Customers as a part of the company's
marketing plan. The company to be legal has to have a track record of
sales to Customer's that do not belong to the pay plan. company
training should emphasize such sales in their training material.
4. Make sure the company has
training that you understand. Initial training should show you how to
make retail sales to customers, as well as sign up new distributors
underneath you.
5. Make sure the company
distributor agreement has a buy back policy for products/services
guarantee for 90 days up to a year is best. the buyback should return
at least 90% of your money when you return the products.
Don't be in a big hurry to
join a MLM unless you like the products or services. If money is the
only reason that you are joining, wait awhile and think it over. More information go here.
To Your Success
Howard
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