subject: Is Multi-Level Marketing the way to go for online based businesses? [print this page] Is Multi-Level Marketing the way to go for online based businesses?
MLM venturesalso known as network marketing businesseshave been with us for a long time. Examples would be GNLD, Amway, Mary Kay and Avon. Even though MLM businesses are growing at a very fast rate and new ones are constantly popping uptrying to capture a piece of the ever growing online market, its amazing at how many people out there still view most of them with a lot of suspicion and are quick to pass them on asPonzi or Pyramid schemes, especiallyif the business seems to rely on its existing customer base to recruit new ones in order to expand, and pays referral commissions to reward the recruiting members.
Whilea Ponzi scheme relies on monies received from new recruits to pay those who joined earlier, with no real products or services to sell, a legitimate MLM business has real assets and real products that they are selling and only gives out a small percentage of their sales to reward those who bring them new customers.Rather than spend huge sums on TV commercials or advertising agenciesto attract new business, MLM businesses rely on social networking or word of mouth'to capture new customers.
Most MLM businesses require new members to paymembership fees to join,a monthly or yearly subscription fees with the promise of getting part or all of the invested money back when a member recruits new members. Some MLM businesses don't require any initial investment. Members canjoin for freeand require no monthly or yearly fees to participate in the referal based compensation plan.
One such MLM business that allows new members to join free is a company called Tampogo. This company has blended together the concepts of internet marketing, networking, and affiliate marketing; andgives its members and customers an opportunity to save money, make money and make a difference. What makes Tampogo's business opportunity stand out is that joining is FREE. There is no inventory or product selling like other home-based businesses. You can qualify to be an active member by simply purchasing one product per month (average price $25). In addition, Tampogopays a flat commission rate to members for referring new members to their shopping site.
Tampogo has also teamed up with non-profit organizations and use part of their sale proceeds to feed starving children around the world. This unique concept allows Tampogo members to not only earnmonthly commission but also participate in a worthy cause.
As the number of online shoppers continues to grow steadily, a company like Tampogo is likely to experience fast growth since it is strategically well placed to attract new membership.
