What is MLM – What does MLM mean?



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What is MLM – Multi Level Marketing? Basically it is a way to distribute a product or  service.

When you have a look at the concept of MLM you will understand that it is simple and fair. On the one end is the producer of a product or service and on the other end the distributor or affiliate who will bring this to the consumer. With other words:

a product / service -------- goes directly to ----------> the consumer.

Normally once in a month the producer will pay his distributor or affiliate a percentage of the retail price on his monthly sales.

Of course, this does not mean ‘multi level’ – but what does MLM mean?

So far you have seen the basic concept – a product/service goes directly through a distributor to the consumer.

This process covers 3 fields in a very honest and fair way:

1. A person handles a probably valuable product which mostly everyone can/will need. This person used it for herself, knows about the benefit and talks about it to others in a natural way (how and to whom will be the theme of another post). - This is honest and fair.

2. This person shares the business opportunity with other persons. As he/she likes her business his/her interlocutor might be interested too and would like to work together with him/her. – This is honest and fair.

3. This person who shares the business with another distributor only earns money when ‘her downline distributor’ makes sales. – This too is honest and fair.

It is after step 3 when the Multi-Level-Aspect becomes interesting. Our initial person will not only earn a percentages of her personal sales and the sales of her distributors, but also a minor percentage of all distributors which will follow her personal distributors.

So you now will understand the picture

                                                                      Simon

get as distributors                Lisa                                                 Philippe

they are doing the
same as Simon
and gain each
2 distributors               John         Allen                             Allegra            Sam

MLM Multi Level Marketing
Depending on the company’s Marketing Plan this will go down to 6 or 10 levels for each distributor. This means for our example that Simon will monthly receive a percentage of the sales of Lisa, Philippe, John, Allen, Allegra and Sam. This example shows only 2 distributors for every person. But there is no limit on how many distributors you personally may involve in your activity.

What is MLM – What else does MLM mean?

In the end MLM is not so different from any other way of distributing or selling products. But there are some BIG differences:

With MLM you set up you own business, you create your own company. OK according to the tax and registration laws in your country you need the permission to deal with other people products and most probably a tax-no.
What you DO NOT need is to rent an office, buy furniture or expensive machines etc. as you can easily start from your home where you already have all you need to start your own company.

How to start your MLM - Multi Level Marketing Business?

Of course you need some initial money to start your activity with the selected MLM Network Company. Therefore choose wisely as there are a lot of companies on this planet. Read the terms and conditions well. There will be companies who want you to buy a certain amount of products to start with. As you buy the products at a lower price you will immediately earn when you sell your first products. Others only ask you to buy 1 product for yourself which is important as you naturally need to understand and know the products of your future business. The company then will do all the handling like shipping, billing etc. for you – quite easy, isn’t it?

As the companies appreciate the value of her distributors, they are spending time and money in teaching, motivating their distributors and/or prospects. The information goes from human being to human being, there is no anonymous, fancy advertising campaign which hardly says anything about the product.

As MLM – Multi Level Marketing is a business from person to person the MLM company will do everything that the single distributor will feel well. They will set up training on various issues, will give you bonuses, incentives and lots more.

So now, when you want to start your MLM business and support it with your own blogging than enjoy the help of NANA – The Sakura Project!

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About the Author: Rieke Fleischer

Member Since: 07/04/2011

I'm a Distributor For:: ASEA, LLC

Industry: Communications and Networking

Primary Web Site: http://www.theconversationcircle.com

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