Multilevel Marketing is one of the fastest growing yet most misunderstood methods of moving products in use today. It has been termed by many as the Wave-of-the Eighties.
But, it will go far beyond that. By the 90’s more than 100 billion dollars woth of products and services has been moved through Multilevel Marketing companies. As we are in the 21st century watch out !
This question is quite frequently in response to a button we often wear or we have seen wearing by others.
Let’s explain it.
1. Marketing simply means moving a product or service from the manufacturer or provider to the consumer.
2. Multilevel refers to the system of compensation provided to the persons who are causing the product to move or the service to be provided.
“Multi” means more than one.
“Level” means generation.
There are really 5 basic methods of moving products:
ex. the drug store, the department store,…
You go into a store and buy something.
2. Direct Sales.
ex. Tupperware, Avon, …..
3. Multilevel Marketing.
This should not be confused with retailing and Direct Sales which commonly is.
4. Mail Order.
5. Pyramid Sales.
The fact is, Pyramides are illegal. The main reasons they may be illegal is their failure to move a product or to provide a valid service.
If a product doesn’t move, how can you even call it “marketing”, let alone “Multilevel Marketing”. Multilevel it may be, but Marketing they are not!
Being in business for yourself means you are buying the products WHOLESALE from the company you are representing. This means also that you can use these products for your own consumption at WHOLESALE PRICES.
Since we are buying products WHOLESALE we can, if we wish, sell these products at RETAIL and make a PROFIT.
You may sell if you want to or have to due to your particulare program procedure, but in regard to making the larger sums of income, the real success is in building the organisation.
Let your sales come as the natural result of building the organization.
The word “selling” triggers negative thoughts in the minds of about 95 % of the people.
However, the PRODUCT DOES HAVE TO MOVE or NOBODY GETS PAID.
When you build an organization, you are actually building a network through which to channel your producths or services.
Retailing is the foundation of Network Marketing. Sales in
So, you see, its not going door to door every day calling on strangers.
When you SPONSOR someone, you are making a COMITMENT to TEACH them how to do what you are doing, building a BUSINESS OF THEIR OWN. Sponsoring is what makes a Multilevel Marketing business so different an makes it grow.
As your organization grows, you are building toward becoming an INDEPENDANT SUCCESFULL BUSINESS PERSON. You are your OWN BOSS.
With Direct Selling companies you work for the company. If you decide to quit that company and move to another area, you end up having to start all over again.
A Multilevel Marketing Organization is not a pyramid scheme.
The pyramid is built from the top down and only those in at the very beginning can ever be near the top. And the pirce of the products or services get every step higher and higher, leaving the people at the bottom broke.