Start an MLM Business
Do you want to start an MLM business but you aren’t too sure what’s involved?
Well, you have come to the right place, because here I will go over the most important things you need to know before you should take any further steps.
Firstly, before we start let’s get the terminology clear. MLM stands for Multi-Level Marketing and this is equivalent to Network Marketing so we will be treating them as the same.
As you may have noticed, when you search around on the internet for MLM opportunities you are more than likely to come across many Network Marketing ads calling out for your money.
This kind of advertising puts a lot of people off. It ultimately doesn’t help the reputation of the network marketing industry.
So you may have been one of the lucky ones who didn’t see those blaring ads or your curiosity is stronger than that suspect feeling you get from them.
A lot of people are certain that it’s just a pyramid scheme and it’s a con-artist trying to rip them off. This article will provide more information on
MLM fraud and pyramid schemes
Network marketing is actually a perfectly legitimate business model. There are some individuals who do see this and decide to start an MLM business, but generally people totally close their minds to getting involved in this industry.
Now I am going to run through the important area’s that you will need to know about so you can make a decision on whether or not you are going to start an MLM business, find out more information or try something else as a home business option.
What Exactly is MLM?
To put it very briefly, network marketing is the direct selling of products and services through the personal recommendation of independent representatives of an MLM company.
How do you generate an income?
Well this depends on the volume of goods sold under your name and the commission rate will vary for the amount of product that you have sold.
For example, you might receive a commission of 5% for $1,000 of product being sold and perhaps a 20% commission if you sold $25,000 worth of product in a month. Commissions are generally paid out on a monthly basis.
You will also have the opportunity to make your own retail commissions by applying the recommended mark up on the products. This generates a more of an upfront cash flow.
The main aspect behind network marketing is that you have exclusive rights to sell a company’s product.
This also means that to make it a fair market, you won’t see advertising on TV or hear of these products on the radio.
This highlights the fact that the amount of product you sell depends on how much effort you put in with networking with others and recommending the products.
This may sound difficult and it can be if you do it like most people do in this industry.
However, you can use the leverage of the internet to get your message out there in promoting your product, provided you don’t break any rules or policies of the company you are with.
You can learn more about this by exploring this website or asking me directly :)
Now in addition, as an independent business owner (in other words, a distributor of a company) you have the opportunity to sponsor or recruit more people into your team underneath you, who will also sell and use the products.
This is why some people see this as a pyramid scheme, but just because you are
yourself and that you have people in your team under you (your down line) doesn’t mean it is illegal.
You will also have people above you and they are called your up line.
This is part of the business model and if you don’t want to duplicate yourself that’s more than OK.
But if you want to really set yourself up financially then this is what you should aim to do, because you earn commissions on your down lines sales too.
Think of it this way. Having a 100 people use and sell $500 worth of product a month each, which comes to $50,000, is far easier than you doing it all by yourself or just five of you doing it right?
That briefly covers what MLM is, but if you want to find out more , then read this article on
'what is network marketing?'.
Why Should I Start an MLM Business?
There are many reasons why you should start an MLM business, let’s brush over some of the advantages.
- Basically anyone can get into an opportunity. The sign up costs tend to be very affordable but will vary between companies. You will find that most registration fees usually won’t exceed $100-$200 depending what country you are in.
I must advise you to thoroughly check the membership/distributor requirements, as some companies make it compulsory for you to purchase a certain amount of goods per month.
Follow this link for a full
MLM home business opportunity checklist.
This will tell you what to look into before you start an MLM business.
Now, where else can you immediately start a business for that price? Other small business start-ups/franchises can costs thousands of dollars to properly establish.
On top of that you have to deal with a lot of legal things, extra stress and they will require a lot of your attention just like an infant child.
In network marketing, you get to work at your own pace and build your business at which ever rate you desire. Stay at home mums can even be successful in this industry and you know how full their hands can be.
- There aren’t any requirements to set up a product manufacturing line, the company you are with has already set all of this up.
The logistics side of things is also sorted out for you. Depending on the servicing area of your company, products can be delivered right to the door step of your customer who may live 500 miles away from you.
Not only that, you don’t have to worry about developing new products and going through the process of applying for patents and so forth.
All you need to focus on is selling the products.
- The hours are flexible. There is no requirement to turn up to work and report to a boss, because you are the boss!
Like I said earlier, you can grow your business at the rate you desire. This means it can be a part time job or even something you do in addition to your normal job.
You also don’t need to set up a corporate office and worry about leasing a premises out. Working from the comfort of your very own home is more than adequate.
- Because you have the option of building a down line, you can use the benefits of leveraging.
This means that once you build a decent size team as your down line, you can earn a substantial income from the commissions of their sales.
However, you should make it your responsibility to lead your team and provide them with the right advice and training so they can be successful too.
- Most Network Marketing companies provide a lot of training and personal development material to help you start an MLM business. This is great as you will learn new skills, especially how to deal with other people.
Finally, you don't need any specific qualifications to succeed in this business, anyone can do it. It also doesn't matter how old you are or what gender you are either.
Now that we have looked at some advantages on why you should start an MLM business, let’s take a look at why it may not be a good idea for the select few.
Why Shouldn’t I Start an MLM Business?
There are a couple of things that you need to be aware of when you start an MLM business, I’ve even been caught out myself. But to make sure you don’t go down those avenues here are some things to keep in mind.
- Most Network Marketers who start out with a company will usually be told to target their ‘warm market’ or make a list of names of people they know.
These may be people in your family, close friends and acquaintances that you can press you opportunity on.
But what you will soon discover is that you will begin to alienate these people if you continue to badger them.
I highly recommend not doing this, there isn’t anything effective about it apart simply applying a screening system of who may be interested and who isn’t.
There are far better ways to get people interested in your business. It is very important to have an understanding of effective sales and marketing, you can start learning about
MLM recruiting training
if you wish.
The best way to grow your MLM business is using the internet and that’s what I do.
This allows you to leave your close friends and family alone and focus on prospects who are actually interested. Who knows, once they start seeing you making some money, they might actually want a piece of what you are having!
- Progressing in this industry can take a lot of effort and motivation. So before you decide to start an MLM business, you should make sure that you got what it takes.
This also applies to your up line, if your up line isn’t a motivated, hardworking leader, how are they going to set an example and guide you to success?
This also means that you have to keep on top of your team. If you have a weak link, make sure you give them the right mentoring to get them back on track. A few words on encouragement and advice on how to progress goes a long way.
Should I Start an MLM Business?
We have covered a fair bit here today. I have given you the rundown of a very good possibility on what you can do for a home business.
You now have more than the enough knowledge on what a Network Marketing business is, the general fundamentals behind how it works and most importantly how you can earn an income from it.
There are obviously many benefits and advantages in starting an MLM business which also came with a handful of reasons why you may not want to go ahead too.
But that’s OK right? It’s best to find out if this business is a good fit for you now rather than later isn’t it?
However, if you think you might want to give this business venture a trial and see how you go then that’s brilliant. With the right training and support from a good up line you shouldn’t go wrong at all.
There is a lot of potential in MLM and it might just be your vehicle to financial freedom.
Don’t let other people’s opinions put you off and cause you to miss out on that chance. This link provides more information on
MLM internet marketing.
I hope what I have provided you has helped you make a decision on whether to start an MLM business or not.
If would like to find out further information or have any questions, just submit a request in the form below.
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