is MLM? (AKA Multilevel or Network Marketing)
is an acronym for "multilevel marketing," and is also
known as network marketing. MLM is not a TYPE of business, but
a WAY of doing business.
companies are no different than other companies who manufacture
or distribute products in most respects. The key difference is
in the way MLM companies advertise and distribute their products
of doing their own advertising and having their own in-house sales
staff, MLM companies pay independent distributors to sell product.
Sales are based on the personal recommendation and endorsement
of the MLM distributor.
MLM is more than just direct sales. It takes direct sales one
step further: they also pay distributors commissions on the sales
of their own organizations. Each MLM distributor can build a downline,
or sales organization, simply by recruiting new distributors for
the company. The multilevel distributor is then paid on the product
sales made in their downline according to the company's compensation
multilevel marketing (MLM) compensation plans are based on a percentage
payout for each level of distributors in a member's downline (hence
the term "multilevel"). When an MLM distributor recruits
new distributors for his or her downline, they are generally placed
on their first level (or front line).
THOSE MLM distributors recruit, their new people are placed on
THEIR first level, which would be the second level of the first
distributor. Most MLM compensation plans pay a different percentage
for each level down a specified number of levels.
are many variations, however, to network marketing compensation
plans. Many MLM plans have a fixed width for each level. Example:
a 5 X 5 MLM matrix would be one in which each distributor can
only have 5 people on their first level, and they would get paid
down 5 levels. This, of course, would be an organization of thousands:
1: 5 people
Level 2: 25 people
Level 3: 125 people
Level 4: 625 people
Level 5: 3,125 people
will note from this example that our MLM distributor doesn't need
to fill all 5 of those levels by themselves. They may only sponsor
5 people. When those 5 each sponsor 5, their 2nd level in their
MLM matrix is filled with 25 people. When those 25 sponsor 5 apiece,
the 3rd level is filled with 125 people, and so on.
a multilevel distributor begins building their downline, the people
they sponsor ALSO start building their own MLM downlines. And
as they do that, they help build the lower levels of the distributor's
organization. One of the big attractions of MLM is that you profit
from the work of all those people below you, who are building
their own organizations (which is also part of YOUR organization).
MLM, you can make a lot of money from the work of other people
- particularly if you realize that you have a responsibility to
train those people to become just as successful in network marketing
as you are!
this example, the MLM company might pay a certain percentage for
the sales of members on each level. To make it simple, let's say
that everyone in this MLM program buys a $50 product every month.
And each level of the matrix pays out 10% per month on that $50
purchase. Here is the total payout potential of this particular
1: 5 X 10% X $50 = $ 25
Level 2: 25 X 10% X $50 = $ 125
Level 3: 125 X 10% X $50 = $ 625
Level 4: 625 X 10% X $50 = $ 3,125
Level 5: 3,125 X 10% X $50 = $15,625
Payout on 5 Full Levels = $19,525
you can see, large MLM organizations can pay you an almost unbelievable
monthly income! But please understand that sponsoring thousands
of people is NOT something you are going to do in a couple months!
You should expect to spend 2-5 years building a large, full-time
income in an MLM program. However, don't forget that the people
you sponsor will be helping you fill your multilevel organization.
very few people have ever filled all the levels of their MLM matrix,
it is easy to see that the earnings from one's sales organization
can be quite exceptional over time. Most MLM pay plans payout
somewhere between 55-75% of the product cost. Our example showed
a payout of 50% (10% over 5 levels).
network marketing pay plans also offer leadership incentives,
such as extra percentages on lower levels, or even infinite levels,
when some level of performance has been met. Or they may have
a bonus pool that is divided among high-achievers according to
some formula. Each MLM company's plan is a little bit different,
so this is an important item to evaluate when comparing MLM companies
(as well as products, longevity of the company, and other factors).
those who are familiar with affiliate programs as they exist today
on the Internet, there is a lot of similarity between MLM and
multi-level affiliate programs that pay on more than one level.
The difference is usually that in MLM programs, distributors buy
a specified amount of product each month. Affiliate programs generally
don't require personal product purchases, but they do require
continuous sales to new customers in order to pay the affiliate
a good commission check.
marketing (MLM) companies sell many different kinds of products
and services. Some of the most popular products and services among
MLM companies are household products (example: Amway); vitamins
and nutritional products (examples: Shaklee and Herbalife); cosmetics
(Mary Kay Cosmetics and Avon); and discount long distance service
(example: Excel Telecommunications).
recent years, more and more established network marketing companies
have been adding an Internet presence. They have put up web sites
describing their products and services, and their MLM business
opportunity. That allows online ordering and signing up as an
MLM distributor online. Many provide web sites for their distributors
to use in their own marketing efforts.
are also many newer MLM companies that started right out on the
Internet and provide services for the Internet community, such
as web sites, opt-in leads, Internet marketing tools, hosting,
MLM training website provides training, specialized resources,
and tools for network marketers. Our site is set up to provide
all the specialized training and knowledge that network marketers
need to be successful with their specific MLM program.
people who try network marketing aren't very successful for a
variety of reasons:
don't understand that MLM is a business, like any other, and requires
motivation, time, energy, and personal investment in marketing
They don't really understand how MLM works and that one must build
a SALES ORGANIZATION in order to earn residual income.
They think MLM is one of those "get-rich-schemes" that
will make them rich in a few weeks without much work.
They don't understand that one of the most important ingredients
of success in MLM is personally training and working with your
They don't understand how to successfully recruit. motivated people
who will make good MLMbusiness partners.
The mission of this MLM training site is to fill in all those
gaps for network marketers and help them become more successful
in their chosen MLM company. Our site provides hundreds of resource
listings for all kinds of critical products and services, training,
advertising, and just about everything else that multilevel marketers
need to build their business, particularly those who want to build
their business on the Internet.