What is a MLM and how is it idealy supposed to run?

Question

What is a MLM and how is it idealy supposed to run?

Answer 1

An MLM is a Multi Level Marketing business. Basically how it's supposed to work is there are a lot of people at the bottom and a few people at the top. The money flows up to the people at the top. The difference between this and a pyramid is that there are several pyramids. Every person in the middle has a group of people under them making money for them. Which they in turn pay to the people above them until it gets to the top.

Answer 2

The last post is partially right, but not entirely.

MLM is Multi-Level-Marketing, which is a business model some companies choose instead of marketing their products through a brick and mortar store.  Word of mouth is an excellent way to sell so they choose to do it that way and eliminate a lot of overhead.  The money they save is paid out to the people in the field instead of buildings, advertising, etc.  

MLM starts out with a level playing field.  Think of an inverted pyramid.  You are the only one at the bottom, and there is room for everyone at the top, depending on how much effort they put into it.  Unlike big businesses like Wal-Mart for example, where there is only room for 1 at the top, then there are a few management employees, then there are the people who actually do all the work.  THAT is a pyramid.

Ideally, you take your product and market it.  You keep your sales as high as possible and you sponsor other people to do the same.  You train them to do what you do, so they too can say goodbye to their JOB (Just Over Broke), and by doing that you create residual income as well as leverage, 2 things that are impossible to do with any job.

Answer 3

MLM means Multi Level Marketing, a form of direct selling first made acceptable and legal by the Amway Corporation. Prior to Amway’s successful court case in 1979 many people regarded MLM as a Pyramid scheme. (A now illegal structure for unloading product at inflated prices to gullible wanna-be entrepreneurs)

Multi Level Marketing companies provide an incentive commission structure of multiple levels. So a distributor can not only earn commission for his/her sales of product but can also earn an overriding commission from the sales volume of other distributors personally introduced and further introduced down multiple levels.

Each MLM with have it’s own compensation plan which can vary greatly for one company to another.

Other names used for MLM include Network Marketing, Referral Marketing, Binary Marketing and so on.

The advent of the internet is changing the industry greatly. Now becoming known as InterNetwork Marketing, clever distributors are dumping the old myths that led people to believe they had to hassle all their friend and relatives. The modern MLM’er can utilize the internet to attract interested distributors nowadays. See http://wwwmlm-myths.simplyseen.com for more on that.

MLM runs idealy when you have these essential 4 things taken care of.

1. My MLM Prospecting: I use SiteBuildIt to create my websites. There is nothing better. http://www.prospecting.simplyseen.com

2. For getting MLM Referrals: An online/offline support tool for getting referrals for network marketers. This suits people from all companies. You also need to effectively follow-up with customers, prospects and distributors. And the most effective (and efficient) follow-up method for ANY business (but particularly MLM) is sending postcards and greeting cards. This one thing does it all. Need proof? - Take a free trial and you will see what I mean. http://www.referrals.simplyseen.com

3. My Online Follow-up: Online follow up and the sequencing of timely reminders to stay on top of your relationship building strategies is handled by Oprius. You can take a free trial of this system here. http://www.followup.simplyseen.com

4. MLM Training: All handled in the Renegade Network Marketer. Don’t attempt modern day InterNet-work MARKETING without this essential training.  http://www.simplyseen.com

Answer 4

MLM is easily explained in the following link:

http://www.firstclassmlm.com