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Multi-level marketting.Pros and cons.
Brought to you by: GEORGE BUTLER - Editor
Dotcomology The Science of Making Money Online Download it FREE
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B. Multilevel Marketing - Benefits & Drawbacks
Dear Friend,
If you've ever dreamed of running your own business from home,
whether on a full or part-time basis...and are good with people
but have very little business knowledge, then Multilevel
Marketing (MLM) may be for you. This is especially true if you
have a minimal amount of start-up cash.
MLM companies provide a product or service to the consumer via a
network of "independent" distributors, who usually work from
their home.
Reputable MLM companies also provide a low start-up cost, all
the training you need, advertising in one form or another, and
supply you with a product line-up or service to sell. They also
allow you to recruit other distributors and make commissions on
their total sales.
The United States Federal Trade Commission, however, cautions
anyone from joining a MLM company that pays you for each
distributor you recruit, as opposed to only paying a commission
on the total sales they generate. This is called 'Pyramiding'
and is illegal.
The U.S. FTC also encourages you to thoroughly research a MLM
company before signing on the dotted line, and not to sign
anything under pressure, but instead, take time to consider all
the details. You can check out their Multilevel Marketing
Caution Web Page at:
http://www.ftc.gov/bcp/conline/pubs/alerts/pyrdalrt.htm. On this
page, they also list seven checks you should do before making
your decision whether to join or not.
Research is always an important component of any business
venture and considering a distributorship with a MLM company is
no exception.
Searching the Internet under "Multilevel Marketing" returns a
recipe of results. These range from government agencies, general
information web sites, encyclopedia type sites to a host of
disgruntled, former MLM distributors. People who are "pro" MLM
don't write web sites on the topic because they're usually too
busy building their network.
THE GOOD SIDE
Here are some of the benefits of finding a reputable MLM company:
- They have an established and very marketable product line or
service, and strive to improve or add to the existing line-up. -
Recruiting new distributors will be a streamlined process, and
the company will not be involved in Pyramiding. - As a company,
they will have a solid track record and good work ethics. - No
experience will be required. A good MLM company will provide
one-on-one training, as well as motivational seminars and a full
compliment of training materials. After all, in Multilevel
marketing, when one succeeds all succeed. - A reputable MLM
company will be "Family" rated, meaning that crude conduct is
not tolerated. - They will provide an excellent bonus plan with
many incentives for those who excel. - Well-established MLM
companies should be able to provide you with resource material
to aid you in not only product sales but in recruiting. - They
will have minimal start-up fees. - A strong support system. -
You will be led by example. - Healthy team competition. - There
will be a successful business and marketing plan in place that
can be successfully duplicated by others, assuming they apply
themselves to the plan and are motivated to succeed. - There
exists the possibility of full-time or part-time commitment.
These attributes would definitely belong to an ideal Multilevel
Marketing Company, however not
all reputable companies excel in
all these areas. Some companies will be better in certain areas
than others. Do research on the company. Don't just accept the
motivational hype used by most MLM companies in order to recruit.
Some MLM distributors are so highly trained that they have a
"come-back" for almost every statement you make or concern you
have. This would be considered a 'high-pressure' invitation to
join. Always take time away to cool off - especially if you're
excited by what you heard. Sit on your decision for a while and
do research. If the company is good, they will still be there
when you wake up tomorrow; and yes, you will get a follow-up
phone call.
THE DOWNSIDE
While the MLM model can be a great tool to achieve what you want
in life, it would be remiss not to mention the downside.
- It is easy to get 'taken' by a disreputable MLM company. Do
your research. - If you plan on developing a network - a
"downline" - it will cost you more money than you realize and
take you longer than you think - although this is slight
compared to the cost and time required to start up a traditional
business. You will spend a lot on resource and training
materials that you will end up giving away to prospects and to
your downline distributors. - You might spend a lot of money on
fuel for your vehicle, meals out, hotel rooms or neck surgery
from sleeping in your car. - Some companies insist on a minimum
monthly order to maintain your distributorship. - Some companies
only pay you for recruiting other distributors and not on their
total sales volume. Beware, as this is called 'Pyramiding' and
is illegal in most countries. - While you may initially be led
to believe that the products sell themselves and that you can
make a lot of money with little effort, beware. Most businesses,
whether they are traditional, online, or MLM, take a lot of
energy and effort to make them successful. Consider a rocket: 60
- 80% of the fuel is used just to raise it a few inches off the
ground. - Be ready for a lot of rejection. Approximately 80%+ of
the people you contact will turn you down. - It is easy to get
caught up in the 'dream' and overspend because, "Winners always
find a way." It is also easy to be pressured into 'willingly'
spending beyond your means. - It could very easily become your
life's vocation, with everything centered on it. Some
distributors even refuse to attend family weddings etc., because
it falls on the same date as their MLM seminar. - Also, like
most businesses, when you begin you will be spending much more
than you make.
The final judgment: Most business entrepreneurs face the
question, "How much am I able and willing to lose if it doesn't
work?" That is the question you have to ask yourself before you
get into Multilevel Marketing.
And of course, what do you want from life and what are you
willing to do to get it?
If you enjoy helping others succeed so that you can succeed, are
willing to take the risks associated with being in business for
yourself, even on a part-time basis, and are willing to put in
long days, then Multilevel Marketing may just be the tool you
are looking for to achieve your business and life goals.
Here's to success!
Sincerely,
-GEORGE BUTLER Editor, Multi-level marketting-benefits and
drawbacks.
About the author:
About TheAuthor: George Butlers' Business
http://www.Pluginprofitsite.com/main-10946
http://www.moneyfromhome-works.com
http://www.moneyfromhome-worksphil832.blogspot.com
http://www.Cbmall.com/?storefront=phil8337. You have my
permission to reprint and reproduce this article,as long as you
leave my bio intact .-Thanks.
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