Multi Level Marketing Explained

I think I'm probably right in saying that Multi Level Marketing (or MLM for short) is one of the few Industries currently showing growth in this harsh economic climate.

It seems as if tens of thousands of workers are being laid off weekly. Traditional Industries are being scaled back, and even high-tech Industries are making huge cut-backs in their work force.
The job losses stretch across every social group: from professionals, to unskilled workers, people are losing their jobs in high numbers - and with no end in sight, the situation does not seem to be getting better anytime soon.

Sadly for many, the latest round of the loss of a job probably means an end to their working lives.
But let's not forget the old saying 'Behind every cloud there's a silver lining'.
A shift in working pattern may present the opportunity to re-think a working career.
So people could think about the opportunities of re-training and where that could lead to.
Some people might even think about working from home.

So, why not consider Multi Level Marketing?

An Explanation of Multi Level Marketing

The idea behind Multi Level Marketing is very simple.
Imagine you have a product to sell.
You can sell your product either:
i)By selling directly to the consumer,
ii)By a distribution system going through a 'middleperson' eventually getting the product to your consumer. Along the way, each middleperson takes a percentage.

Now keep in mind that each of the above scenarios require money be spent on Advertising, Marketing and Promotion. And each of these can add up to a sizeable cost in getting your product to your consumer.

Multi Level Marketing requires that you recruit people who will buy, then sell your product, making a profit on the sale. The recruited people will then recruit other people to buy, sell and recruit.
This pattern is repeated.

With Multi Level Marketing, the product is sold directly to the consumer via a 'Distributor'. The Multi Level Marketing Company pays a commission to the Distributor for helping to establish a distribution channel.
If the Distributor builds a large distribution channel, (known as a 'down line' in marketing jargon) the commission earnings can amount ot a good income because each Distributor receives a commission off the effort of each person recruited and active in the distribution channel.
Therefore, the more people a Distributor can recruit to
a) Buy and sell product
b) Recruit other people
The more commission the Distributor will make.

Pros and Cons of Multi Level Marketing

Advantages of Multi Level Marketing include:

i)You'll never get fired!
ii)You'll never get laid off!
iii)You are in control of how much money you make
iv)Good Tax Incentives ( take advice from your CPA / Tax Accountant about this)
v)Opportunities arise to build new relationships.

Disadvantages include:

i) The sometimes notion that high earnings are easily achieved.
The government's required disclaimer (Statutory Instrument 1997 No. 30 - The Trading Schemes Regulations 1997) states:
"It is illegal for a promoter or a participant in a trading scheme to persuade anyone to make a payment by promising benefits from getting others to join a scheme. Do not be misled by claims that high earnings are easily achieved."

Multi Level Marketing is a business. And like any business, it requires hard work. Treat your MLM business like a hobby and you'll receive hobby earnings!
ii)It takes time, effort, persistence, patience, teaching and marketing skills to build an effective, active down line.

Multi Level Marketing is not a 'get rich quick' business. The fact that the business depends on building relationships with other people means that work and effort need to be put in up front to reap benefits later on.

So, if you are facing the threat of Redundancy (and many people are), or you are looking for an opportunity to start your own full or part time business, why not consider the prospects available with Multi Level Marketing? Like any successful business, it requires hard work and sustained effort, but for the diligent person, the rewards are many, with real prospects of high earnings potential.
So now that you have Multi Level Marketing Explained, take the first steps and be in control of your working destiny!

By: Lynda Davos

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Lyn Davis wrote this article so that Multi Level Marketing Explained is now clear to you. Lyn Davis can help you start a very successful MLM business by using her MLM Marketing Plan Success Formula