What is MLM MARKETING, what are some of the pro’s and con’s to this home based business?
Posted on 29. Dec, 2009 by admin in Affiliate Marketing
By: David Gasser
MLM marketing is short for Multi-Level Marketing. It works by signing up with a company and signing up others. You get commissions either from the direct sign up or from purchases made by individuals that sign up under you and under those who are under you. Over the years it has evolved from a few individuals going from meeting to meeting to World Wide signups through the internet along with calling potential customers and informing them as to how you can help them earn an income through your program. There are some downfalls to this type of marketing which are primarily due to lack of training by individuals looking to just make a quick buck and then leaving their sign-ups to fend for themselves. When you sign an individual up under you they are you’re your down-line and it is generally your responsibility to train them. The individual that signed you up is called up-line and is responsible for training you.
Training can be anything from one on one conversation over the phone, emails, and newsletters to phone seminars. It all depends on the program you have signed up for. Another source that is becoming popular is to use forums that can answer questions MLM marketers have and archive the answers for quick reference. To fully understand how to run your business you must do research on your own because you must remember that your up line is trying to recruit just like you and spending a lot of time with one individual can be counterproductive to their goals.
The main focus of multi level marketing is to build large teams that can bring in hefty incomes for those on the top of the chain. While this has made a bad name for some in the industry not all MLM participants feel that large numbers are the way to go. Training key personnel to help build and train other high quality marketers is probably a better way to create a sustainable system. If you sign someone up it’s a good idea to get to know them personally and help them in any way possible so they can succeed. If they succeed, you succeed.
MLM marketing structures and commissions vary from company to company but for the most part they are structured like an inverted tree. The roots are the up line and the branches are the down line. As commissions are made each person along the path from the tip of the branch to the roots gets a small piece of the earnings. So in essence the more people you have the more you make. The biggest problem with this is that some individuals are looking for quick cash and they sign up person after person without ever helping them succeed or even finding out what their goals are.
While this type of business can be very fun and profitable you must remember to do your part. While signing up thousands of people in a day would make you a lot of money down the road you will lose a great deal of them to lack of training. If they cannot reproduce your results they will not stay with your business and there for you will not earn any money from them in the future. You will also have a great deal of them who will express their feelings of dissatisfaction publically online, the place that you will be doing most of your recruiting. It’s far easier to recruit people when they praise your efforts and not talk about how you left them high and dry and took all their money.
©2009 David Gasser
About The Author:
David Gasser is the owner of www.workhomeprofits.com. His main focus is to research ways to earn an income online and help people find opportunities that are a good match for their goals. To learn more about this and other subjects visit http://www.workhomeprofits.com
