MLM Shocking Facts You Absolutely Need To Know
Tuesday, November 10, 2009 8:18
MLM marketing (also known as network marketing) is a marketing structure used by some companies. The structure is designed to create a marketing and sales force by compensating promoters for both the sales of products they make and for new distributors they bring into the business that will promote the product as well.
People who join and promote the company product are known as distributors, they do not earn a salary but instead they are awarded a commission dependant on how many sales they make themselves and the sales of their downline. The process is similar to a franchise.
A downline is the people that have paid you to join the MLM business and you will get a percentage of their sales. So in essence you pay to join into the business and then you will earn for every person you bring into the business and any future sales they make.
So here’s a few examples of MLM businesses; Quick and easy to get set up, Can start straight away if you like, if you join near the top of the MLM business line you can stand to make a lot of money by building a large downline and earning lots of commissions.
Here are the Disadvantages of MLM; Methods of selling are outdated, this is because most MLM models encourage you to sell to your firends and family, pick up the phone and tell people about your product. These aren’t exactly cutting edge and many people will not be interested in sales calls! Another disadvantage is if you join near the bottom of the line most of the market will be saturated and you’re competing with experienced marketers. Now you will not be able to compete with these as nearly all MLM’s do not provide training on Internet Marketing and techniques.
So overall I think MLM’s are outdated as the marketing techniques they teach are no longer effective. Nearly every MLM will not provide you with the real training you need on Internet Marketing if you are to make money online and set up a successful home business.
They leave most people making no money from the business and have therefore wasted their signing on fee.
One of the main reasons people join an MLM is because of the lifestyle that is portrayed however at the beginning you will spend most of your time calling people on the phone and more often than not getting negative responses. This doesn’t sound like fun to me!
However if you have got your mind set on joining an MLM make sure you join near the top of a line and that there will be the support and training you require!
This article came from the laptop of Jonathan Pitts. Jonathan is a very experienced Internet Marketer who has had a lot of success in this Industry! He now mentors others so they can become successful entrepreneurs too! Fed up of the Hype in this Industry he has created a Truth Report giving the FACTS on how to Make Money Online! He could be charging $100’s for this but has decided giving it away for free!


