What Is MLM?

Multi Level Marketing (or MLM, for short) is one of the most popular ways of trying to earn a living out there today. It is widely popular for all kinds of reasons which will be discussed here. What is it, how does it work, and is it worth your time?

What Is MLM?

MLMMulti Level Marketing is often called pyramid selling, although MLM representatives bristle at this term. One reason they bristle is that pyramid selling is often regarded as a scam and is illegal in most countries.

With MLM, there is a team at the top hiring agents to sell a product. These agents hire more agents, who continue to do the same thing until they run out of steam. Eventually there are (in an ideal world) thousands of MLM agents selling a range of products by a particular company.

How Does It Start?

Sometimes, you go to a party someone hosts and learn about the items they are promoting. This is the Party Plan version of MLM. Popular goods include educational toys, storage containers for the kitchen, candles, cosmetics, and diet supplements.

You have probably been to one or two such parties before and been tempted to buy the least expensive items so your friend would get a hostess gift and some profit, but did the article really grab your attention? One or two people out of an audience of ten might be so taken by a product that they want to learn more.

With a passion for the meal replacement or skin cream you are now using, you now want to sell it to others. Passion is what carries a sales person forward, raving about results that you can share with others. You lost twenty pounds and look great. Your skin has regained some of its lustre. There is no better advertising than personal, testimony.

Where Do Profits Go?

When you sell goods from an MLM company to clients, the proceeds are divided among the original sales person, their sponsor, the one above that, and everyone else until you reach the top. Profits are shared out. Many people are not interested in making a profit: just earning enough to pay for their goods. Others make a living out of MLM.

How To Make A Living Selling As Part Of Multi Level Marketing Schemes

The first thing you need to be a successful agent is knowledge about the product. You have to use it and prove its worth to yourself. Imagine the questions skeptical clients will ask. Then become passionate about the goods you sell: that is step 2; a natural progression from your understanding of the articles in question.

Business OpportunitiesNext, study your market. Do not just try to sell your goods to everyone who crosses your path. You will get burned out with the rejection you experience. Anti-aging skin cream is not for 13 year old with youthful skin. Dietary products are of no use to your thin athletic friends.

Your neighbor who sells cosmetics is not going to swap sides and buy what you are selling, though you could have an amusing debate. Think carefully about whom to approach and how to do it. Even think about booking a table at an expo where all kinds of retailers can sell their products at Christmas, the local fair, or Easter.

Make the sales pitch fun, but do not put on the pressure. Prepare to talk to a lot of people and work on your people skills. Have visuals around. If prices are high, encourage people to ask about costs rather than putting them out. This gives you a chance to start a discussion which you would not have had the chance to do if consumers just saw the figures and ran in the opposite direction.

Host a party at a friend’s house. These still work if you have the gift of being a good hostess. Offer door prizes and discounts. Hook customers and once they realize how good your product is, the price will hardly matter. Many of the goods people buy from MLM agents are very high quality. They are expensive for several reasons: they are made from good ingredients and created ethically. Packaging is environmentally friendly.

Sponsoring New Agents

Tips On MLM SellingOf course the next step is to then sponsor other agents into the business. The more people you sponsor the more money you make. MLM companies always tout the more people you have under you the less work you do. If you really want successful Agents under you then, you need to spend time with them and teach them how to sell the products and sponsor other people.

But ultimately if you are good at selling and sponsoring this is where the big money is. Research shows that only around the top 5% in any MLM company makes the big money, but you may just be one of those.

If you do manage to make a living from your MLM sales, think about it: you are your own boss, set your own hours, and work from home much of the time. You can still be around to help your kids with homework, make supper most nights, and run children to their dance classes. At the same time you have something which is your own; a chance to do a job which is nothing related to motherhood, which is fun, and gets you out of the house.

Have Fun With MLM

Finally, make this a fun opportunity. For most people it is not a day job. It is a chance to meet people which could lead to marketing opportunities. If you like to socialize and are more concerned about interaction with others than the sales figures you make, your success will, ironically, increase. Meanwhile, the pressure will be off. You have established a few customer relationships and are not losing money, and that is what counts.

 

Image By: Free Digital Photos (sheelamohan and jscreationzs)

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