Multilevel Marketing
Basic Idea
Multilevel marketing (MLM), also known as "Network" marketing,
are a way of selling goods or services through self-employed
independent distributors. As a networker (independent
distributor) you receive commissions - for both your sales of
the company's goods or services and those of other people you
recruit to join the distributors. Multilevel marketing plans
usually pay commissions through two or more levels of recruits,
known as the distributor's "downline."
Downline is the distributors recruited by you, and you receive
commissions on their sales and the sales of the distributors
they recruit.
Upline is the distributors who are above you in the MLM
hierarchy and who receive commissions (overrides) from your
sales.
To be avoided are MLM plans that are actually pyramid schemes
(so called "naked pyramid scheme") in disguise - that is, plans
that focus only recruiting more and more distributors, but have
no substantive product at the bottom of the pyramid. New
participants pay a fee to participate and hope to profit by
recruiting others into the system. Chain letters are an example.
State laws against pyramiding say that an MLM plan should only
pay commissions for retail sales of goods or services, not for
recruiting new distributors. However, MLM companies typically
structure their payment plan so that recruiting is more
profitable.
Before you start working in particular MLM, get familiar with
the following mainstream websites and web magazines.
You can find top Sites about Network Marketing at
www.RichTrack.com.
Typical mistakes to avoid
1. The most important part of MLM is the education system of MLM
company, but not "magic plan" nor "magic leader" who will help
you to get rich quick. The most successful companies usually
have the most advanced educational programs which cover people
management, negotiations, sales, leadership, money management,
and many more. Do not get cheated by "progressive plans" and
"world leaders". Marketing plan is just the part of MLM
business. The small part.
2. Taking part in naked pyramid scheme. Check if your MLM
Company runs a pyramid. Avoid any plan that includes commissions
for recruiting additional distributors. It may be an illegal
pyramid.
3. Easy Money. Network distributors who are successful know
their products, their customers, the company's vision, and are
ready to do that which is necessary "hard work". A distributor
whose mind-set is on laying a "foundation" rather than looking
for easy money will be around a lot longer.
4. Be cautious of plans that claim you will make money through
continued growth of your "downline" -- the commissions on sales
made by new distributors you recruit -- rather than through
sales of products you make yourself.
5. Don't pay or sign any contracts in an "opportunity meeting"
or any other high-pressure situation. Insist on taking your time
to think over a decision to join. Talk it over with your spouse,
a knowledgeable friend, an accountant or lawyer.
6. Do your homework! Check with your local Better Business
Bureau and state Attorney General about any plan you're
considering -- especially when the claims about the product or
your potential earnings seem too good to be true.
Top MLM Companies
1. Amway Corporation - A Global Leader in Multilevel Marketing
2. Dorling Kindersley Opportunity selling children's books. 3.
The Body Shop Offers skin and hair care products with
information covering campaigns, values and company. 4. Golden
Neo-Life Diamite International A multi-level marketing company
selling nutritional products and water filtration systems. 5. Nu
Skin Enterprises Corporate site. Direct selling company with
three divisions, Big Planet, Nu Skin and Pharmanex. 6. Big
Planet An internetworking company offering a financial
opportunity to a vast network of sales representatives. 7.
Herbalife International Corporate site. Independent distributor
offer selling personal care and nutritional products. 8. Avon
Products, Inc. Corporate site. Representative opportunity
selling cosmetics, clothing, toys, perfume, jewelry, books, and
videos. 9. Tupperware Official U.S. web site with products
available for sale, and information on parties. Work at home
career opportunities. 10. Seasilver USA Offering nutritional
supplements. Includes distributor information.