What Exactly Is A MLM Or Network Marketing Business?
The first question that usually comes to mind when MLM (multi-level marketing)is mentioned, is usually ‘is MLM legal’. The reason for that is that MLM otherwise known as network marketing, is often incorrectly associated with ‘pyramid selling’. For definite ‘Pyramid selling’ is illegal and for the vast majority of people who get involved, it is a complete scam that results in them losing money to people that only care about one thing; extracting money from the hapless individuals who fall for it.
A real ‘pyramid scheme’ is where money is transferred from one level of the pyramid to another but with no products or services being exchanged. In the end that means a lot of people paying out their hard earned money to very few people at the top of the pyramid. So the ones at the top make a lot of money from anyone duped into participating in the scheme and the people at the lower levels getting nothing in return, ultimately the ones at the top then disappear into the mist with their ill-gotten gains.
MLM on the other hand, full name multi-level marketing and also known as ‘network marketing’, is completely legitimate and is a process or business model through which products and or services are offered via a network marketing structure.
The first thing to do is to put the ‘pyramid selling’ ghost to rest and explain how it can be differentiated from a legitimate MLM or network marketing business model that can be considered to be a real home business opportunity.
Anyone who is involved in pyramid selling will be very aware that the practice is illegal. That is why they will often try and disguise the fact that it is actually pyramid selling by offering some token product or service. They will happily describe it as MLM in order to give it some level of legitimacy. This is often why real multi-level marketing is affected and viewed in a negative light. In a nutshell, if there are products and services involved how do you know whether it is legitimate MLM or illegal ‘pyramid selling’?
The answer is relatively simple, if the products and or services are worth the price being asked, you know how you will be paid and how much you will be paid if you meet the qualifying criteria for payments, then you can be pretty confident it is a legitimate business. If on the other hand you can’t answer these questions then perhaps it would be better left alone. Don’t forget that we are talking completely disproportionate levels here or in fact whether you will actually receive a payment at all, not slight competitive edges where you may be thinking it may or may not be reasonable costs and payments.
With that out of the way lets discuss how network marketing works and whether it a business model that would suit you.
MLM involves personal endorsement and recommendation, in other words, you buy and use a product and or service personally and then you recommend it to others.
If they purchase the product or service and join the network you receive a commission. So you are rewarded on two counts, for selling the products and for finding other people who are interested in marketing the products, hence the term network marketing. The people below you in the structure are called the down line and the people above you are called the up line. It really is as simple as that.
The best network marketing businesses will have a clear and verified method of payment that can be scrutinised. It will have an established business model with defined procedures for introducing and training new people, and probably most importantly have a support team committed to ensuring you succeed at the business and make money. The reason for the latter is obvious, you make money then they will also make money, but clearly if you are putting in the effort you need to take the larger proportion of any commision earned.
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List Of Top 10 Best Home Business Resources
Making money with a home based business is easier if you have the best home business resources. Here is my top 10 list of resources and opportunities to use to build your own successful home business and make money online.
1. Autoresponder. I like Aweber. I am not the only one judging by the emails I get from some of the top Internet marketing gurus.
If you are not building an email list you are missing out on a tremendous source fo repeat traffic and sales. Email marketing is an absolute must for long term online success.
2. Website Hosting. Host Gator is real easy to work with. You only need one account to host multiple domain names. Plus they offer excellent customer service.
3. Blog Platform. WordPress is hands down the top way to blog on the Internet today. There are hundreds of free themes to choose from that offer all kinds of plug ins and features.
4. Article Marketing. Writing and submitting articles is much easier with Submit Your Article. Their patented article leverage feature is a great way to get unique content into hundreds of article directories.
5. Traffic Exchanges. Credit based exchanges are a good way to promote landing pages for traffic and leads. Traffic Swarm, I Love Hits, Soaring 4 Traffic, and Traffic Splash all work well for me.
6. RSS Feeds. FeedZilla is probably going to have a feed you can add to your blog. It is a great source for up to date news on numerous categories.
7. Auto Blogging. BlogBlueprint.com has a couple of great free reports and an excellent program for learning how to create multiple streams of income auto blogging.
8. Pay Per Click Ads. Google Adwords is still going strong. Yahoo Marketing is very good as well. PayPerClickSearchEngines.com offers a 12 part ecourse on how to do ppc advertising for less money.
9. Network Marketing. This business model is thriving thanks to the Internet. Never has it been easier to build a worldwide business without leaving your home. I like MyWorldPlus as my top network marketing opportunity.
10. CPA Offers. Getting paid to get leads is a lot of fun and very profitable as well. Did you know there are people making a 7 figure income doing CPA offers.
Offer Vault is a great source for multiple CPA affiliate networks. Commission Junction has what seems like a never ending supply of offers to promote.
This my list of the Top 10 Home Business Resources. It is interesting how many different opportunities and ways to promote online there are today.
The only way not to make money online today is to not actually sit down and work. You can make money in so many different ways you just need to use these home business resources and get started.
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The Fear Of Joining Network Marketing Business
People who are afraid of venturing into MLM and even beginning the training must have some pretty compelling reasons why. After inquiring, not to my surprise, it was never about choosing to work for another persons business, but rather the crippling fear of beginning your own. Let’s dismiss some of the fear.
1st It takes a bit much money.
Individuals don’t have mega money to invest in a business.
2nd It calls for too much time and training.
Individuals don’t prefer to work 80 hours a week for the beginning year or two to get their business running.
3rd There’s a bit much risk.
Many businesses fail in the first 2 years, and they’d have to quit their job, so there was no security.
4th They don’t understand how.
Most individuals have never taken any business courses or had any business experience.
Surprisingly, “I don’t know how” is the single most common fear (that’s where the MLM training comes in).
MLM is a serious business, no less so than any other way you may think about earning your living for the rest of your life. The truth is that network marketing is hard work, it requires time, and you’ll in all likelihood lose some income to begin with. However, with careful planning it commonly takes a couple of months to turn a profit (a few achieve this in the first month) instead of a few years, and whatever amount you may lose initially has o1, 2, or perhaps even 3 fewer digits compared to the start-up losses of most conventional businesses.
All the same you are able to yet reap the tax benefits of running your own business, and you are able to have even as much, if not more, revenue potential as most conventional businesses! Imagine getting financially independent in 1 to 3 years…Without being forced to spend thousands of dollars monthly… Without being forced to work long hours 7 days a week…Without even being forced to quit your job and…Without being forced to get a business degree or employ someone who has one…This is network marketing.
Among the facets of a legitimate, legal MLM company is the power of a failed distributor to acquire a full refund (usually less a 10 percent restocking and processing fee) on all product and marketing material that’s in resalable condition. So, if acted on cautiously and intelligently, there’s a monumental decrease in risk proportional to conventional business startups, yet with a corresponding or even greater earnings opportunity.
If you’re deliberating starting your own business, or you would like to, but have always been anxious, open your own mind to MLM. If you’ve never acted on a network marketing venture or gotten the training, it must be for one of two reasons You just didn’t understand about it, or you have a bias against it.
And that’s exactly what it is, a prejudice. You’ve prejudged this business based on what somebody else has told you about it. Put differently, you’ve chosen to embrace another person’s opinion of this business. Don’t let others do your thinking for you. Arrive at your own decision based on your own valuation.
Check this business out. Truly, do your due diligence. And when you’re done, I’d defy anybody, even the most earnest skeptic, to not experience a meaning, positive shift in thinking.
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