Mlm Network Marketing Opportunity
"I have an mlm network marketing opportunity for you that will knock your socks off!" She didn't exactly say it that way, but the high powered speaker at the direct sales meeting got the crowd into a frenzy as she told starry-eyed candidates about making enough money to afford a large boat, a beautiful house and a trip to Europe each summer with her family. There are very few people that can paint such a grand picture of wealth and leisure as the purveyors of an mlm network marketing opportunity. Even at this moment there are as many as several hundred companies, some with high profile names, that are revving up their multi level marketing propellers in order to recruit new associates into their business strategy. It should be stated from the outset that most mlms are not scams in the same sense that online assembly jobs or stuffing envelopes for big money are, but they are really, really bad deals for most recruits.
The typical multi level network is a tremendously profitable endeavor for the pioneers of the program. Just as large corporations reward higher ups for the hard work and production of those who do the grunt work, so do the multi level pyramid compensation plans of mlms. The defenders of multi level programs use the corporate paradigm as a defense of its structure, but the people at the bottom of the food chain, and even those in the middle are not promised they will be able to afford high end homes and European vacations if the recruits work really hard. And if the paradigm holds, they are not rewarded with those high end prizes if they convince all their fellow workers to join them in a quest for more productivity. An mlm network marketing opportunity is a chance to become wealthy. So is looking like Brad Pitt, singing like Pavarotti, building empires like Donald Trump and public speaking like Barak Obama. Study after study has shown that multi level marketing is generally not a good deal for those getting in the game, but maybe you can beat the odds so here is a checklist of things one needs to know before jumping in to an mlm network marketing opportunity.
The first thing to do is decide how sold you really are on the product being offered. In most cases, the cost of the product is measurably higher than a comparable product purchased at a drug store or department store. Of course the talking points will always be addressing the superiority of the product sold door to door or niece to uncle. A special alloy manufactured in France makes this whirligig far superior to the one bought at Walbaum's or so says the mlm mantra. Every product offering coming out of a multi level program is touted as being the most this and the most that but the question is whether or not the higher prices can be sold as a bargain for the product received. A nine hundred dollar revolutionary air purifier may actually be quite superior to the one for four hundred, but can it truly be marketed on a sustained basis and keep the average recruit excited about defending the cost at every turn?
The second question about any mlm network marketing opportunity is a personal one only the reader can answer. In the twenty first century, mlm training is stressing relational recruiting which embodies what some might call bridge building to customers and candidates for recruitment. In a nutshell, relational recruitment means that before someone buys into the program, he will have to know and trust the person giving the pitch. Now that's great with the circle of family and friends that a person has, but what happens when that runs out? The question becomes whether or not an mlm network marketing opportunity recruit who is not a natural salesperson can make the training and the knowledge of the product stronger than the natural hesitancy to build bridges with strangers and put a relationship ahead of the urge to sell something. All recruits can be trained to repeat a mantra, but not all are natural sales people and many are very introverted but looking for a way to increase their income. The mlm superhighway is littered with the wrecks of dreamers who envisioned wealth but experienced an inner conflict between what the marketing company demanded and who they actually were.
Finally, those looking for the right mlm network marketing opportunity will have to know how compensation is handled and this is where real problems can begin. Believe what you will, but there are mathematicians who have proven that the multi level marketing plan is a real loser for the majority of recruits. Many online websites are replete with anecdotal stories of people realizing that as recruits, have bought more product from the mlm company than they have made for commissions. The unilevel paradigm is the model that allows someone to recruit as many persons as he can over a lifetime which sounds exciting, but is a proven dud for the lowest rung associates. The binary model limits the number of recruits one can have to two and spreads the wealth more evenly among those above and below the pyramid. The most promising mlm network marketing opportunity is the compressed multi level which is the new compensation model designed to retain more associates for a longer period of time. Know the answers to all of these questions and also know that God loves you very much, for as Jesus said, "For God so loved the world that He gave his only begotten Son that whosoever believeth on Him should not perish but have everlasting life." (John 3:16)
Mlm Network MarketingLegal MLM network marketing systems, also known as multi-level marketing, are sometimes difficult to distinguish from unethical and illegal pyramid schemes. Think of it in terms of the Parable of the Weeds. Good companies are out there but a lot of bad ones have grown up around them. Separating the good from the bad has become a difficult task. The problem became so severe that the U.S. Government reviewed the situation. So, those looking to venture into MLM business should step cautiously. In a typical MLM network marketing plan a parent company uses independent salespeople, or distributors, to market its product directly to customers. These distributors then work on building a customer base. Independent distributors can also recruit other independent distributors who work on building a customer base of their own. Each level in the system earns money off the sales of new distributors and their customer base, referred to as a downline. The organization begins to build from the base up like a pyramid with the parent company always sitting on top reaping the rewards from the efforts of those people below it.
Now, MLM network marketing systems have been very successful for some popular cleaning chemical suppliers, cosmetics, and many other companies. They are completely legal because commissions are earned only on product sales or services. The legality of the business comes into question when money is earned from recruiting new distributors alone or if money comes primarily from new the recruits. Pyramids are illegal because inevitably the supply of new distributors dries up and the pyramid collapses causing almost everybody involved to lose their money. Those at the top of the pyramid may survive with enough money to continue, but the many investors at the bottom usually don't. So it's easy to see why this type of networking business practice should be scrutinized before jumping headlong into one. Unfortunately, it's easy for an unscrupulous business person to disguise an illegal or unethical company into making it look completely legitimate. The entire pyramid system wobbles from the bottom up because it's not built on solid business or Biblical principles. Dishonest money earned by vanity and greed will always disappear. "Wealth gotten by vanity shall be diminished: but he that gathereth by labour shall increase." (Proverbs 13:11) Potential investors must do the investigative ground work or they could part ways with their money.
The government can't tell anybody whether or not an MLM network marketing plan is illegal or not. It also says that joining a MLM group is a matter of personal choice. But the government has issued some guidelines for those who are looking to get into network marketing. First, as mentioned above, don't get involved in any scheme that includes commissions for recruiting. And don't enter into an agreement requiring the purchase of expensive inventory because these plans are at a high risk of collapsing. Be leery of claims that money will be made through continued growth of distributors. Claims of potentially enormous earnings through the sales of miracle products are a red flag. Don't sign any agreement or contract at an opportunity meeting or high-pressure situation. Finally take time to completely check out any plan being considered. Most legitimate MLM network marketing plans use generally accepted practices. One such practice restricts how much inventory a distributor may purchase. It's often referred to as the 70 percent rule which prevents "inventory loading". In theory this prevents distributors from qualifying for additional bonuses.
Once invested in a MLM network marketing plan a person can earn pay, commissions, and bonuses in a variety of ways. Some can be extremely complicated. Many networking systems have ranks within the downline which determines the amount of compensation to be paid out on sales. For example, a group director may have under him or her a manager, supervisor, and associate. A Stairstep-Breakaway method of compensation system actually combines two plans. The Stairstep part pays compensation on the total volume of a dirctor's group, which includes personal sales volume and the entire downline sales volume. Therefore, sales and the rank of people in the downline determine the amount of compensation earned. Each rank in the step earns a higher compensation for the director. In addition to his or her personal earnings, the director of a downline group might earn 10 percent commission from the manager, 20 percent from the supervisor, and 30 percent from the associate. When someone in a director's group steps up and eventually becomes a director, they are said to breakaway and form a first generation breakaway group. As a result, the director of the original group will earn commissions from this breakaway group. However, in some interpretations of the breakaway method of compensation, the splinter group becomes an autonomous entity, and the original director doesn't earn commissions from it. Interpreting the system this way doesn't provide much incentive to step up and build.
Another method of compensation within the MLM network marketing system is called Unilevel which actually means one level. But most Unilevel payment systems usually pay commissions several levels deep. Unilevel might be the least complicated method of payment. However, the Matrix plan can be quite complicated because of the different variations possible. Under the Matrix plan the number of direct distributors that can be sponsored gets limited to the depth and width of the Matrix. Once the matrix fills, a new one may have to be started. Binary plans are also used in MLM network marketing systems. Binary compensation methods are actually a variation of the Matrix system, and uses a point system to determine the amount of payment. Finally, the hybrid compensation plan is derived from combining methods from the various plans. All the plans are more complicated than outlined here. Further research should be conducted to fully understand each one.