subject: What Is An MLM Opportunity? [print this page] What Is An MLM Opportunity? What Is An MLM Opportunity?
MLM is the abbreviation of multi level marketing, not to be confused with pyramid selling. Mlm is a business modal that allows its participants to profit from other peoples efforts further down the chain, at the same time giving the people further down the chain the same opportunities as the people that have joined the program earlier. In this article I am going to describe an MLM opportunity in detail and outline some things to look for when choosing a multi level business opportunity.
Many big corporations are now using MLM as a means of selling their products and cutting down on advertising costs and wages. I am sure you have heard some of the big names in the U.K. such as Herbalife and Kleeneze. The way it works is simple, the company allows people to independently distribute their products for a percentage return on the sale price, and this is known as a first level payment. The other source of income and where the MLM opportunity comes into play is the recruitment of further distributers by people already distributing. These new recruits will be part of that team and the person who recruited them will also earn commissions on the sales that distributer makes in that team. This modal continues for the next distributer still earning the first person commissions up the line.
This above method is known as building a network and although you may only have 100 customers to yourself earning you 1 commission a month you may have 10,000 group customers earning you 50p commissions each month. The scenario is that once you stop working you will still earn money off people still selling in your team.
Things to look out for in an MLM opportunity are; each new distributer should get the same commissions on their personal customers as the person that recruited them and the payment structure should be the same down the line as the above person. The product needs to be in massive demand to avoid the market being saturated by distributers with not enough customers. The product needs to be an ongoing purchase not something that is a one off sale, the best example of this is the sale of gas and electricity as an MLM opportunity.
Things to avoid in an MLM opportunity is; being required to buy a large amount of stock upfront, this is indicative of a company that struggles to sell products normally. Avoid a payment structure where the top level person earns a higher percentage than distributers lower down the chain, this is pyramid selling and will see people joining at the bottom simply working for the top players profits. Always do your due diligence on any company that you consider joining, where possible a financial stability check as MLM business can tend to be flash in the pan opportunities. Companies with a stable financial background will have no problem making this available.