According to W
ikipedia â€œMulti-level marketing (MLM) is a marketing strategy in which the sales force is compensated not only for sales they personally generate, but also for the sales of others they recruit, creating a downline of distributors and a hierarchy of multiple levels of compensation. Other terms for MLM include pyramid selling, network marketing, and referral marketing.â€
There is an incredible phenomenon that occurs when others realize you have a lot of followers, fans, people in your ‘circle, and connections from years of work. They approach you with every MLM known to man with a slightly different approach to trying to get you to sign up and sell for them because you have a list of people. Remember the definition,’ the sales of others they recruit’. It’s like recruiting for war, here’s the troops, the weapon and the strategy – now go forth and fight.
Unfortunately most of the world falls into two distinct groups those who want to sell and those who don’t. I know a lot of people in the MLM field be it Primerica selling mutual funds, Dubli promoting auctions and online products at a discount or Melaleuca selling healthy household products. The common threads between them all are simplistic in the manner they generate excitement, sales and ‘recruits’. The recruiters believe in their product, this is a prerequisite, unfortunately they try to sell the product to the rest of us by exhorting the virtues and trying to convince us of the value of selling the product to others.
Some will call it Network Marketing, they are still trying to sell you products or an idea through referrals and/or relationships you have built over time. Word of mouth is a powerful tool for marketing because in recent years trust factors have zoomed because of social media. People more than ever trust friends who suggest something to each other. One of my problems is I think if you believe in and sell the MLM model perhaps you should diversify and sell more MLM’s than the one most do as a sideline. I’m thinking that the hard sell approach to MLM/Networking selling is making people lose patience with the process and they are getting fed up with being bombarded with yet ‘another MLM scheme.’
How about this as a novel approach selling the product as a solution to your needs and requirements. What I mean is instead of selling me Melaleuca products through their classic (and proven) health model why not sell it as a tax break for the common people. I have a close friend who only has two customers under her as ‘recruits’. They don’t want to sell any more than she does but they like my friend love the products. She earns a commission every month from these two people of about $60. Yikes that is not too exciting right? Well last tax year she got $4000 back from the government because her business generated some money ($720) but she wrote off her auto, part of her home for an office, etc., etc.
My friend will probably never proceed past the point of being a customer and a reluctant sales recruiter but she has made money from the sales of Melaleuca products to allow her to subsidize her income by reducing the money she had paid in taxes on her day job.
Just so you know I like MLM’s or whatever you prefer to call them, they have made many people rich! I remember a stat from some berry juice company that said of the hundred’s of thousands of associates selling the product only one percent made more than $800 per year.
If you do your due diligence and find a network marketing business with a good solid residuals structure, fair compensation and great products you have found a winner.
Now write down your list of 25 friends…