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Structure of multi level marketing business model

March 29, 2013 , 1 admin

When it comes to marketing any product or services the multi level marketing business model is indeed an amazing business model. It is essentially a structure in that mlm act as a substitute for the individual marketing effort to sell the service and product through direct sales. As the term multilevel marketing says, in this marketing model every distributor or marketer will reside at certain level.

It implies if you are a distributor you will have the fellow distributors above as well as below to your level. For example if you are at the level 3 you will get the mlm commissions from your sales and through the sales made by your distributors below level 3. Does it sound like pretty good opportunity to make money easily right? yes you can make money through this awesome multi level marketing business model but you need work hard and smart until you settle in at some high level.

So many hundreds of various business opportunities have taken the advantage of with the multi-level marketing business model. Most of the businesses have succeed with this business model are companies offering products. Their distributors all understand the multi level marketing definition so that they can effectively use the model in their businesses. To suceed in multi-level marketing you need to understand the business model as well.

In multilevel marketing all new people who join in the business are known as promoters or distributors. Initially, you need to invest your money and time in some products which are offered by the mlm companies. Once you purchase the product you can promote this to some other people around you, once you make a sale you earn a commission. At some point your customers will want to become distributors as well. Once this happens you can earn money not only from your personal sales, but from the sales of those you introduced to the business.

If you understand this multi level marketing definition well, and embrace it, then you can also use this strategy in the expansion of your own business.  From the business point of view your products will reach many people in the marketing network through highly enthusiastic distributors with the considerable commission rate. But as a manufacturer it is a huge benefit indeed.

So the question here is it possible for an individual distributor to make money easily thorough mlm?  To be certain, yes you can make a considerable profit. However, its not a get rich quick scheme for the most successful.  Reports from Direct Selling Association specifies only 10% of the people who involved with the mlm makes an average profit of $2,400 per year. The rest of the people is not making any profit at all.  This report sounds like mlm companies are not having a very good record, Doesn’t it? But hang on. We should analyze why 90% of the people are not making any money at all. The reason is simple either they don’t work to get any new distributors or they follow some failed techniques to get new mlm customers. These are the reason for the failure rate.

So rather than looking for quick money you need to wait patiently for 2 to 5 years to enjoy the perks of mlm business commissions. In this time frame you need to utilize your skills to get new prospects.  One of the good ideas to find customers at the initial stage is “Bring like-minded potential people to your business”. So that they will work heavily to make a business for you. You can’t expect your friends and family will turn as distributors and form a marketing network for your business.

Go out and be successful selling the product, you will find your friends, family, and customers will want more. Then you can introduce them to the business at their request. The number of mlm scams has become so prolific that many people have a bad taste in their mouth about the multi level marketing business model.

The quickest way to tell if a company is a scam, look at what they are promoting. If they are pushing the business opportunity more than the product. Be wary.