Multi-Level Marketing (MLM), which is also known as Network marketing, is one of the many ways by which products are being moved. It is also one of the fastest growing methods and the one that is most misunderstood by people. Since the 1990s, products and services that are worth over a hundred BILLION DOLLARS have been moved yearly through Multi-Level Marketing companies.
The purpose of this article is to convey to you exactly what Multi-Level Marketing IS and what it is NOT. It is also to show you how you can effectively explain Network Marketing to others. Ok. To break it down, let’s start from Marketing itself.
What is Marketing?
Simply put, Marketing means moving a particular product or service from the product’s manufacturer or service provider to the consumer.
So, what is Multi-Level marketing?
Multi refers to “more than one”.
Level means what we can simply put as “generation”.
Multi-Level is the system of compensation that is being given to the people that are making the movements of the products or provision of the service possible. There were other times that MLM has also been called Multi-Generation Marketing as well. But let’s stay with multi-level marketing since that is the most common.
Yes, very common. This makes it easier for many chain distributor schemes and illegal pyramid programs to take advantage of it and present themselves as a multi-level program. This has created an unjustified stigma for this business. This is why many up-coming MLM companies have decided to use other names for their marketing; even if it is still the same system with MLM. They call it “Network Marketing”, “Uni-Level Marketing,” and “Co-op Mass Marketing.”
Basically, there are just 3 methods by which products and services are being moved, which are retailing, direct sales and Multi-level marketing.
Other types of marketing include Mail Order and Pyramid Sales. Mail Order is most of the time included in the category of direct sales. The Pyramid sale is the one that is most confused with Multi-Level marketing.
The truth is PYRAMIDS are ILLEGAL. How? They fail to move any product or provide any valid service in particular. How then, can they even be called marketing in the first place? Let alone present it as a Multi-level marketing program. Maybe they pass as multi-level but there is no way they are marketing. Another reason they might be illegal is also the fact that since no products are being moved and no services are being provided, there can’t be any genuine system of compensation.
Why are people very objective when it comes to getting into MLM programs?
This is because they have not yet realized the difference in Multi-level marketing and direct sales technique of marketing.
Well, I understand their confusion. This is because most of the reputable multi-level marketing companies are involved in association of the Direct Selling. The situation has conditioned you to probably see them as door-to-door sales program. This could perhaps, be that the first time you came across them was when you heard a knock on your door or at your office and was asked to buy something.
The fact is, there are some features that make MLM different from Retail and Direct Sales programs. One very important difference is the fact that if you are in MLM, you are in business for yourself. But not by yourself. Being in business for yourself simply means you are buying the products in form of wholesale from whatever MLM company you are representing. This means that there is need for you to make use of the items you have purchased for your own consumption.
This is BIG business! Majority of the people are not aware that Multi-Level Marketing is that big. Multi- Level Marketing has been in existence for more than 50 years now. Many companies are making billion of dollars annually by themselves, especially those that have been around for 30 to 40 years now.
I know of a company that make over $2,000,000 as at the 1st year of its operation. $15 MILLION at the 2nd year, $75 MILLION was projected for their 3rd year and they were able to reach their goal of making one billion dollar in a year at the 5th year. This is really very fast in people’s league. MULTI-LEVEL MARKETING is one of the best and effective ways for a manufacturer or an inventor to put a product on the market.