Multi-Level Marketing (MLM) Is Network Marketing

The other day someone inquired about MLM, which stands for multi-level marketing, regarding what it is, what it is about and how to get involved.

There are always opinions, facts and myths on every topic, subject, matter and idea. Here are a few facts about multi-level marketing.

Direct marketing

MLM, multi-level marketing companies are in business and extremely successful worldwide. The majority of these companies are legitimate as they do have products that they sell. MLM in some places and companies are now being referred to as "network marketing" or "affiliate marketing". Wherein, the products, goods and services cannot necessarily be purchased in a storefront, but directly from the company itself through their affiliates, also referred to as brokers or distributors which have access to said products, goods and services.

Typically network marketing of a product eliminates the need for the so-called “middleman” also known as a store. Which in turn alleviates the middleman’s cut, for lack of a better word, on the products, goods and services being sold. This type of system allows for higher profitability because it saves on expenses paid to third party participants. Thus, more cash can remain with the network marketing company and its affiliates.

The concept of multi-level is in everything, it is neither new nor mysterious. All companies and businesses are built around the theme of a triangle or a pyramid. Just as most faiths and religions have a Power at the top and then everything else flows underneath in a graduated or step system. How many companies have multiple CEOs? The CEO may have multiple responsibilities, but even if there happens to be two CEOs everyone else who works for the company is under the authority of the CEO (who is the head person in charge) on a lower level, which almost always means making a lower salary than what the CEO makes.

MLM real and alive

Granted there are people who will set up scams and schemes and call it multi-level, because it is. And marketing because that is what they do. The pay structure, initiated by the people who run the program, is what makes their plan be a scam or a scheme. Network marketing should neither be confused with gifting programs, which, is an entirely different subject and possibly a Hub unto itself.

In network or affiliate marketing, the compensation plan is what makes the business a business, just like any traditional storefront business. During most any presentation by a network marketing company, you will hear them use the phrase “brick and mortar”, referring to a building that you walk into to conduct business. The majority of network affiliate marketing companies do have a presence on the Internet and some have online stores.

When you first get started, you have to start at the bottom, yes where there is more work to do and less pay based on a lower commission figure. In network marketing it is entirely possible, according to a company's pay structure, to be on a lower level and make more money than the person who recruited you. Traditional pyramid scams and schemes do not allow for that to happen, with pyramids, the money always flows up and you do not have the option to keep or make more than what you initially invested.

Rarely in affiliate marketing will you find companies that promote people based on how much money they paid to become involved, usually every affiliate starts at the bottom level and each person makes the same initial investment, to cover costs for broker fees, distributor charges and, or membership dues. Everyone follows the same pathway to each level after level after level.

In network marketing, as you accomplish designated goals, you move up the ladder and the higher levels bring you more responsibility and higher pay. Just like on a regular "job", network marketing simply moves the process of pay raises and promotions along faster. The speed "affiliated" with "affiliate marketing" can be attributed to the compensation, or pay plans and schedules. Most network marketing companies have payouts built on binary systems and, or a forced matrix. Which is "buzz talk" for how much the company will pay you based on predetermined goals that you accomplish.

For example: If you complete tasks A, B & C, one time, you will be paid $X,

if you do the same thing again, three times, you will be paid $Y.

If you complete tasks D , E & F, you will be paid $Z.

And so on according to whatever a particular company's pay schedule is at the time.

Network marketing is a multi-billion dollar industry and there are people who have worked hard and have become millionaires and billionaires as a result. In network marketing, most companies have established a structured format where the steps start and what it takes to attain the ability to move up to the next highest level.

Network in the network

Aside from affiliate marketing being a source of income; it also is a great way to meet new friends through networking and building relationships. It also is a terrific way to expand existing relationships, because as they say in affiliate marketing “Friends do what their friends do”. People like to be involved in things; they like to be a part of a group and activities.

Network marketing attracts people from every type of background you can imagine and then all the rest you cannot think of. Network marketing may be one of the few environments where differences are a non-issue. And team work is paramount.

Because there are so many varied backgrounds, network marketing offers a broad scope of talented, educated and knowledgeable people who typically are willing to share their knowledge about the company, the product, sales and marketing and life in general.

And yes, surely recruiting is involved, that is the fundamental foundation of the network and, or affiliation part of the marketing. It isn’t very complicated, when you know about products, goods and services that you like, you will tell people that you know about it. We all do that, people have been doing that for thousands of years, the upswing to it with affiliate marketing is the company you are marketing, as well as the product, will pay you for promoting the company and its product. As an affiliate you earn income doing advertising, recruiting, sales and marketing. Most network marketing also functions as a home-based business, which has its own set of perks.

The key is finding the company, the product, and the compensation plan that you like and believe in, which will enable you to be successful, as you will not be nearly as excited about something that you don't believe in. Almost all of the network marketing companies have websites; their websites are filled with all their information, so you can do your research to see which company is a good fit for you. Success in anything is based on your level of enthusiasm, your desires and your goals.