What is Multi-Level Marketing (MLM)?

Multi-Level Marketing (MLM) is a simple, duplicatable and profitable home-based business that requires consistent time and effort to build. MLM is not a get-rich-quick scheme. The industry has been hurt by bad publicity because many get-rich-quick schemes disguised themselves as MLM companies.

The new term for MLM is network marketing but many people still prefer to use the old term MLM because it is a great acronym for Make Life Meaningful, Make Lots of Money and Meet Lots of Mentors.

What is Multi-Level Marketing? MLM is simply a very effective marketing model to distribute products or services effectively through multi-levels of independent distributors.

MLM is a proven and tested marketing system that works but why so many people fail in MLM? A better question will be why so many people fail in so many things?

Will you agree that if a person do not follow the system and do what he is told to do the chances of failure is very high? If a person is not willing to do the basics and do the things that are necessary to achieve success, do you think he or she will achieve it?

John Milton Fogg said: “The reason people are not in network marketing is because they don’t understand it.”MLM requires consistent effort because like all things it is based on this Law of Success, the right actions will give you the right results. Life is about choices, you can choose to work in a job that requires you to work from 9.00 am to 5.00 pm, Monday to Friday, or you can choose to work 4 hours a day, Monday to Friday in your MLM business, but sad to say many people are not disciplined enough to want to do that because of the lack of a burning desire. It is a matter of beliefs, many people believe that working in a job is much easier than doing MLM.

When you agree to work for a boss, you are accountable to him to put in the required hours to get the results that justify paying you the salary you have agreed to receive from him. Basically it is a fair exchange, you have agreed to exchange your time and effort for the salary.

To be successful you first must understand what MLM is all about? MLM is simply a very cost-effective way for manufacturers to distribute their products to consumers through thousands of independent distributors and some people call MLM the People’s Franchise. It gives ordinary people an opportunity to be their own boss and earn extraordinary income!

There are basically two ways for a manufacturer to distribute its products, the conventional way or the MLM way. Imagine you are the manufacturer and you have decided to do it the conventional way, you have to spend millions of dollars on advertising to support your agents, wholesalers and retailers and give a total profit margin of 50% or more to them.

What if you decide to distribute your products the MLM way, everything remains the same except instead of spending millions on advertising, you use the money to invest in the administration and software to support your MLM independent distributors. The profit margin that you give to your wholesalers and retailers will be the commissions you will be rewarding your independent distributors for helping you to distribute your products through the MLM way.