Multi Level Marketing

What exactly is Multi Level Marketing and how does it work?

Many people wonder, what is multi level marketing and how does it differ from affiliate network programs?

You may also hear itreferred to as pyramid selling, network marketing or referral marketing. Given the fact that you are looking for multiple ways to monetize your site, you may be considering a MLM structure.

Often referred to as MLM, this type of marketing has been around quite some time and can be done offline. In basic terms, MLM is having a small piece of a larger business.

The reason behind the name multi level marketing is self explanatory. As a marketer, you start your own chain of down line marketers. Let me provide you with an example of how it works:

  • You purchase your products from a supplier at discounted prices and sell them at retail value. 
  • You recruit others to sell the same product except they buy products directly from you instead of a supplier, you are their supplier. 
  • You sell to others as their supplier at a mark up slightly higher than you paid in order to make profit.

The goods you can sell as a multi level marketer vary greatly. You can sell anything from toiletries such as soap to web servers or web space.

Should you ultimately decide to do business in the MLM space, talk with others who have been there and made a nice income at it. Conduct your own research by learning how to better market your MLM income stream.

Items to Note About Multi Level Marketing

The further "down line" you are the less money you make. Given this fact, if you start significantly down line it can be difficult to sustain and income over a long period. And this is the problem with the MLM model.

In recent years, there has been a high amount of criticism and questions around MLM and marketing tactics. It seems when people hear "Let me tell you about a revolutionary new product that you can cash in on". It's almost comical at how common sense gets thrown out the window when people get just a glimpse of the possibility of easy money.

MLM - Doomed to Fail?

Let's look at some reasons why the MLM model is doomed to fail in so many instances. I am not saying all MLM companies are scams or fail, but many do fail and are nothing but scams promising easy money for a fee.

One such phrase should trigger that sick feeling in your stomach that you're being roped into a scam "Everyone will want this product". This is never a true statement. No matter how great the product is, not everyone will want it just like everyone doesn't drink bottled water or wear a certain kind of shoe. 

The bottom line and the question you should ask yourself before you participate in MLM is this "if the product is so revolutionary and great, why is it not being sold by utilizing the marketing system all other products use?

Why is there a need for special marketing such as MLM? How can a product rise to the top with inexperienced marketing and sales people? If these questions have not been asked, ask them before you participate in any MLM opportunities.

What looks like a money making opportunity could be a pyramid scheme in disguise.

MLM Has No Structure

MLM recruit their sales force hand over fist with no controls in place. Exactly how many people can one city have all trying to sell the same product?

MLMs operate like this - you are one of 10 that someone else recruited, you recruit 10, those 10 recruit 10 more and the cycle goes on and on.

Now, just how many people selling the same product is too many? I think you now see the answer. MLM is totally susceptible to market saturation and if you don't get in at the bottom, there's little possibility of making any money.

What MLM Can Do For You

Not only do you stand little chance of making any money, but you stand to ruin your reputation with your long standing friends.

Multi level marketing businesses will grow based on it's members or marketers exploiting relationships with others.

If you plan to be a participant in MLM, be prepared to accept this as part of your business strategy. It's called networking and to those you are exploiting, you're business takes first priority in those relationships and thus your friends and family feel violated.

I strongly suggest you research multi-level marketing thoroughly before you get caught up in a get rich quick scheme. It's a fact, anything that is worth pursuing will take hard work and dedication. 

MLM companies typically market with "materialism" as testimonies of multi level marketing success. You'll see brochures or videos featuring others standing beside their Ferrari and mansion saying they got to this level in 30 days. 

Make no mistake, it's another multi level marketing scam and not worth your time or effort to participate.

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