Multi-Level-Marketing - The basics

Selby Webb

Published by Selby Webb
Co-founder, Editor and Head of Marketing of SuccessField


2 years ago

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Multi-Level-Marketing, also known as MLM, is based on a legal marketing form, which doesn’t only benefit it’s salespeople when sales are confirmed, but also compensates them for recruiting other salespeople. I assure you; it sounds easier than it is. Before joining any company, think about these facts.


The product

town-sign-822236_640

Before you think about recruiting 5’000 partners to place into your downline, analyze the product. Would you buy it if you were a customer? If yes, would you pay the price offered? If yes, why wouldn’t you purchase it from another company? Too many MLM-affiliate try to sell the opportunity and not the product.

Speaking out of experience, I have had many friends that tried to sell me different products. They would try to sell me tupperware, energy drinks, vacuum cleaners etc. When looking at the products I would ask myself: “Why shouldn’t I just buy a red bull in a shop instead of ordering 40 drinks I don’t know online and pay for the forwarding expenses?”

However, I once met a guy that sold gold, based on a compesation plan. His skills as a salesman were outstanding. When I asked why I should buy it from him, he gave me examples only based on the product. One who doesn’t know MLM would think it’s even a normal sales job. If you sell the product and not the opportunity, you will be a better recruiter than when you actually focus on recruiting and not selling.


The company

conference-room-768441_1920

There are many things in life that aren’t irreversible. One of those is a bad reputation. I’m aware that the media referres to MLM as a pyramide scheme, which makes every company in this industry look bad. Wether your company is based on a pyramide-scheme or not is a different topic, so let’s just put that accusation asside for the moment. Critisize your respective employer by answering this questions.

  • Does the homepage look professional?
  • Is the company transparent?
  • Is the company coming up for its corporate taxes?
  • In how many countries is it legal?
  • How long does the company exist?
  • How many affiliates are currently in the program?
  • Does the company live up to its promises? ( google facts about the delivery date, pay-out etc)
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The compensation plan

business-world-541432_1920

The compensation plan is what makes you wealthy. Analyze the way your company works. it’s not about how many units/points/credits you need to cycle but how hard it is to achieve those tasks. If it also contains a unilevel plan, simulate it with virtual numbers that don’t seem too big. An example: “If I recruit one person every two weeks while doing two sales weekly and my partners sponsor one affiliate monthly, how far will I be in the next 6 months?”


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Multi-Level-Marketing - The basics

Share on Facebook
Share on Twitter
Share on Google+
Share on LinkedIn
+

Multi-Level-Marketing, also known as MLM, is based on a legal marketing form, which doesn’t only benefit it’s salespeople when sales are confirmed, but also compensates them for recruiting other salespeople. I assure you; it sounds easier than it is. Before joining any company, think about these facts.


The product

town-sign-822236_640

Before you think about recruiting 5’000 partners to place into your downline, analyze the product. Would you buy it if you were a customer? If yes, would you pay the price offered? If yes, why wouldn’t you purchase it from another company? Too many MLM-affiliate try to sell the opportunity and not the product.

Speaking out of experience, I have had many friends that tried to sell me different products. They would try to sell me tupperware, energy drinks, vacuum cleaners etc. When looking at the products I would ask myself: “Why shouldn’t I just buy a red bull in a shop instead of ordering 40 drinks I don’t know online and pay for the forwarding expenses?”

However, I once met a guy that sold gold, based on a compesation plan. His skills as a salesman were outstanding. When I asked why I should buy it from him, he gave me examples only based on the product. One who doesn’t know MLM would think it’s even a normal sales job. If you sell the product and not the opportunity, you will be a better recruiter than when you actually focus on recruiting and not selling.


The company

conference-room-768441_1920

There are many things in life that aren’t irreversible. One of those is a bad reputation. I’m aware that the media referres to MLM as a pyramide scheme, which makes every company in this industry look bad. Wether your company is based on a pyramide-scheme or not is a different topic, so let’s just put that accusation asside for the moment. Critisize your respective employer by answering this questions.

  • Does the homepage look professional?
  • Is the company transparent?
  • Is the company coming up for its corporate taxes?
  • In how many countries is it legal?
  • How long does the company exist?
  • How many affiliates are currently in the program?
  • Does the company live up to its promises? ( google facts about the delivery date, pay-out etc)
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The compensation plan

business-world-541432_1920

The compensation plan is what makes you wealthy. Analyze the way your company works. it’s not about how many units/points/credits you need to cycle but how hard it is to achieve those tasks. If it also contains a unilevel plan, simulate it with virtual numbers that don’t seem too big. An example: “If I recruit one person every two weeks while doing two sales weekly and my partners sponsor one affiliate monthly, how far will I be in the next 6 months?”


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Share on Twitter
Share on Google+
Share on LinkedIn
+