Multi-Level Marketing has gotten a bad wrap over the years. However, when operated properly, it’s a business based on logic. If you can recruit 5 people to sell your business concept for you; if you can encourage these five people, with incentives, to ask five of their friends to sell your business concept, then soon you are going to have a huge number of people working to make your business concept work.
In MLM everyone is a potential lead, everyone is a prospect. Why? Well, everyone can sell. I’m sure this is something you find questionable. Selling isn’t in everyone’s skill set, you say. In some respects, this is true. The act of pure sales is a talent, an art some would say. However, the passing on of recommendations, the suggestion that someone you know might want to get involved and sign up, this is as easy as a share on Facebook. By the time you reach 5 layers of 5 people you have nearly 4000 people all saying how wonderful the business concept can be. If you upped 5 to 7 then after 5 layers you are nearly at 20000 people.
The point of direct selling is to distribute without having the need for a middle man – no shop, no mall, no online shop even. This means the savings made by the manufacturer can be passed on to the MLM personnel, who may or may not pass the savings on to the customer. There are many stories of people who have literally emerged from living wage packet to wage packet and through MLM have gained financial freedom.
The products sold through direct selling are often of better quality than those sold in the supermarkets or at the mall. The quality of the products sold directly, missing out the middle men, have the luxury of products that are highly crafted. This is because the margins are more comfortable. There are less people who need to take a profit out of the product, so the manufacturer can invest more in the development of the items sold.
The incentives offered by creating an effective downline mean that networking is your best approach, both for the overall company and the individual. The more people you recruit the more you earn. Therefore, you often spend more of your time selling yourself, then selling the concept. This is all part of the joy of the system.
It is in the best interest of all to support one another and convert others to the product and the people.
In some respects, on a basic level, there is little difference between MLM direct sales and purchasing a franchise. In both you are expected to communicate the values of the mother company. However, you are a business in your own right and it is in your interest to draw in a profit and to recruit others. For the use of the mother company name and reputation, you pay a commission. This means, throughout time, franchise and MLM has been a common business practice that allows all of us to be an entrepreneur.