MLM, or Multi Level Marketing has been around since the 1940's, according to The Greatest Opportunity In The History Of The World, a book by John Kalench. The basic premise of MLM has several facets to it: selling a product or service, making sales targets to acheive bonuses, and recruiting others to earn commissions on their sales and bonuses.
Each company differs somewhat in their approach, sales techniques, training, recruiting, commission and payout structure. But for the most part, you can count on a MLM company to be as good as their recruiters, managers, and/or upline. A product may be spectacular, and the payout structure even better, but if you are lacking in resources or support (or worse, contact with the financial department when they owe you money) then you're in for a very rough ride.
A typical MLM program will look something like this:
- No direct recruits: You receive X amount on all personal sales, with X increasing as your sales
increase proportionally.
- Direct recruits: Same as above, but you now earn X amount on all of your direct recruits
sales as well. Usuallly, there are personal mimimums that you need to meet in order to receive these
bonuses from your direct recruits.
- Indirect recruits: Same as above, but now you earn X amount on all of your indirect recruits sales as well. Many companies have different compensation amounts for different levels of indirect recruits, with some compensating to infinity (which means that you will receive a commission for each sale of ALL of your recruits, as long as there is no broken link anywhere).
Most MLM companies have a start-up fee to cover the cost of administration, setting up an "account" with the financial department, supplies, samples, and information. It is not hard to find several well-known companies that you can start with for less than $50, which is one of the many pluses to MLM. The potential for a better than normal income is good, but you will need to work hard to get your business off the ground. However, with hard work, a great product or service, reasonable prices, good marketing and networking, and some direct recruits, you could earn an income comparable (or better) to what you make in the "real world."
Selling A Product or Service
The first thing that you will need to determine is what kind of product or service that you are
