Are you looking to What MLM Business Is About with a possibility of joining? Do you want to know the truth so that you can decide whether it’s good for you?
An MLM business is about business structure where you earn commission from different levels of your downlines.
How To Earn Money With The MLM
The payment can be summarised as follows:
- For every person you recruit, you earn a commission
- When the people you recruit also recruits, you earn a commission
- You also earn a commission from the products they buy plus from the products you sell to retail customers
This can continue to several levels and can also end right at the beginning;
For Example; If you are recruited and you do not recruit, it means you do not have any downline meaning that you can only make money from the products you sell.
Without any downlines who are also actively recruiting and selling products, it is almost impossible to make a living from what you sell as a single individual.
This is why you should not jump into it without knowing whether you are that type of person who likes socializing and talking to a lot of people.
MLM is a business that many people confuse with Pyramid scheme
- Many pyramid schemes attempt to present themselves as legitimate MLM and some people define all MLM as pyramid schemes even though there some legal ones.
- The MLM compensation structure have been a frequently criticized for their similarity with pyramid schemes and in some cases have ended in up in lawsuits.
- For an MLM to be completely legal, it should put more emphasis to sale of products more than recruiting but not many companies stick to that.
- Many companies encourage the distributors to recruit and, in some companies, the distributors are more than the customers meaning that the products are just being bought and consumed by the distributors.
If such companies are investigated by Federal Trade Commission (FTC), there is a possibility of them being shut down as they are seen as though they are exploiting the distributors and running the company as a pyramid scheme.
It’s very difficult for Multi Level Marketing Companies to retain their distributors. This is because most of them join thinking that they will be able to make money within a short length of time but they don’t.
According to FTC, about 99% of all people that join MLM lose money.
This is mainly because:
- Distributors invest their money on products thinking that they can sell them but turns out to be difficult
- Distributors buy sample products for demonstrating to their target customers and prospects.
- Distributors pays to attend some of the training events. They also spend on marketing materials which includes necessary essential materials like packaging materials for the retail orders.
- Building downline can be difficult, time-consuming as well as money consuming because you have to either invite the prospects to your house, go to their house or meet up somewhere else like a coffee shop.
- Distributors also spend money not only for the products they buy from their MLM company but they also pay the MLM company for the delivery. If the products are for retail, then it means that the profit is lower.
- Getting repeat customers is also very difficult.
- You are told that you are a business owner but if the company is shut down, you lose everything including your downline.
You also lose your customers as the products will no longer be available.
To know whether an MLM business is for you, think of all the pros and cons and go with your instinct.
If you want to try something else, I would recommend you try Affiliate Marketing.
I used to do MLM but it was not for me:
- It was very time-consuming and expensive.
- I had no time for myself or my family. You are told that it is a Work from home Business but in reality, it’s not. If you do not go out to recruit, sell or deliver products, then you will not make any money.
- I had a full-time job and all my evenings and weekends were taken over.
When I found Affiliate Marketing, I could finally take my life back as you have the full control of the business and the Business is 100% yours.
When you become an Affiliate Marketer, you promote other companies’ products but unlike MLM:
- you do not spend any money on the products.
- You can promote any type of product and from as many companies as you wish.
- The products you promote can be from different niches.
- You do not come face to face contact with customers as everything is done Online and the owner of the products is the one who does the deliveries and all the other customer related issues.
If you think Affiliate Marketing could work for you as it did for me, then I have a training for you from Wealthy Affiliate.
Here is their website link: www.wealthyaffiliate.com.
You will learn everything you will ever need to know about Affiliate Marketing which includes:
- Where to find free products to promote: Do you know that you can promote almost any product found on Amazon without buying them and still earn a commission?
That shows the power of Affiliate Marketing. Your work is just to find companies that have the products you wish to promote, check whether they have Affiliate program for that product, apply to be Affiliated with them and that’s it.
They will give you a link that is only unique to you and every time someone buys through your unique link, you will get paid a commission; and all that happens Online meaning that you could be anywhere and operate a business in Affiliate Marketing.
- You will also be shown how to operate an Affiliate Marketing Business which will include the access to all the tools and resources.
Immediately you sign to be a member, one of the co-founders of Wealthy Affiliate will welcome you and walk you through the platform and will also give you a link so that you can start training and building your real business simultaneously.
I will also welcome you and help you to get started.
Getting started is Free. This allows you to get inside of the platform to see for yourself whether the training and business support is of value to you.
As a free member, you will have the ability to build one free website as well as have access to a few very valuable lessons.
If after that you find the training and support valuable, then you will be able to upgrade to a premium member where the price is discounted for you.
You only pay $19 for your first month.
As a premium member, your earning potential is unlimited.
Affiliate Marketing allows you to build a global Business generating long term income in the form of Passive income.
CLICK HERE to be part of Wealthy Affiliate
Looking forward to welcoming you.