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  MLM , Multi Level Marketing is a style of marketing used by companies to get their products and services out into the market place.

 MLM  uses the warm market to influence sales of products and services and help to grow your Downline and Organisation.

In most  MLM  companies you will earn commissions through your Downline, some 3 levels deep and some 5 levels deep.This depends on the company you choose to work with.

Multi Level Marketing has been around since 1945 and was created by the company we now know as Anway and is also used by companies a well know drinks company, and AT & T. These companies decided there must be a better way of getting their products and services out to customers. They noticed their employees were coming into the office after the weekend and talking to their friends and colleagues about the places they had been and the products they had used but more than that they noticed the people their employees were talking to were showing interest in the products and services they were being told about. The companies decided that if their employees could influence each other to spend money in certain areas then they should get rewarded for it.

This is when Multi Level Marketing was born.

The industry which is now more well known by entrepreneurs around the world than most other companies has grown to a huge size and has created many millionaires in the process.

How does  MLM  work?

 MLM  uses the warm market of it’s distributors or agents to market their products and services. The ideas is that your start your  MLM  in an industry you are interested in and then hold a grand opening of your new business. You invite all of your friends and family and ask people to bring a friend and then have all for your products out on display for people to touch and feel and test.

This is how you build your first customer base.

The idea is to maintain your clients from your open day or grand opening and ask them to talk to their friends and family about the products they are using. If your client is using a product which has visible results, it is easier for them to talk about it to friends as a lot of the time their friends will have already noticed and want to know what it is.

When the client refers their friend back to you and your products, you then have a new customer.

Another way to grow your customer base can be to advertise. The most traditional ways to advertise would be to deliver leaflets, put up posters or do street surveys.

You can also purchase leads. Your upline will know if there is a preferred lead source the team uses. The leads can range in prices from £4 to £10 per lead depending on the quality and source.

A newer way to advertise would be online. More and more people are turning to systems to help them learn how to generate their own leads instead of paying lead generation companies.

When advertising online you can choose whether you would like to advertise for customers or to create a downline of people like you who want to work from home.

Earning Commission

The final part of an  MLM  business is getting paid!

There are normally 2 ways of getting paid,in the standard set up of a Multi Level Marketing company.

The first is from the products that you sell. The money you earn is the difference between the price you pay for the product and the price you sell the product for. This is your product commission. The second form of commission is from your downline, this is the difference between the price you pay for a product and the price your downline pay for that same product. In some companies you will need credits of points to accumulate throughout the month which once at a certain level will mean you gain a higher status in the company and are eligible for the further commissions and royalty payments. This is what will become your residual income.

How do you know if  MLM  is right for you? I hope this article has helped you in making a decision. There are lots of companies who use  MLM  to market their products and there are lots of people who have been incredible successful within the Multilevel Marketing Industry but really, the decision is up to you.

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Source by Katie Hazzard