Multi-Level-Marketing - The Basics


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


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


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)

The Compensation Plan


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?”

Selby Webb

Co-founder, Editor and Head of Marketing of SuccessField

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Co-founder, Editor and Head of Marketing of SuccessField

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