What is an MLM?
Let us define what an MLM is. “Multi Level Marketing (MLM) is a controversial marketing strategy for the sale of products and/or services. The salesperson, distributor , consultant, promoter, independent business owner or what ever the participant is called, receives a commission for direct sale of a product/service and a smaller commission from any one who he has enrolled in the MLM company”.
One of the incentive of an MLM company is that this is a “home based business”with no office to commute to. In fact this is the most common denominator among all MLM companies.
Each MLM company has it’s “own” compensation program and rules for distribution of wealth. Many times the only ones that are making the big $$$ are the ones who were in on the “ground floor” when the company was formed. In another words, the lower in “rank” the less pay you will likely receive in the compensation.
The company will encourage you to build your own network or team. This is possible for the person who has a “sales” type personality. The average person who lacks the aggressiveness to sell someone the “plan” usually will have a much smaller team and smaller income from down-line members. The same thing is true of the direct sales to “customers” which in many cases are other participants in the company rather then those customers outside of the company.
What is an Pyramid Scheme?
While most MLM companies in a pyramid model of compensation, there were some in the 1970s and 1980s that were not offering any product/service, just recruiting individuals for the company, only those at the top of the pyramid received any monetary compensation. The participants that are most recently recruited contribute to the wealth of those at or near the top of the pyramid.
But the U.S. government stepped in and halted this type of operation. Now all MLM/Direct Sales companies must offer some type of product/service to the public. Because of the shady past, many think that all MLMs are nothing but pyramid scams. This simply not true. Federal Trad Commission is the watch dog over all “home-based business”.
Other MLM Questionable Practices
While the FTC guards against the traditional pyramid scheme or scam, it also guards against companies that emphasis recruiting participants for commissions rather then selling products/services for commissions. The Herbalife settlement with FTC was an example of emphasizing recruiting over selling of products. Herbalife had to pay $200 million to representatives in the settlement. The FTC is also on the prowl looking for companies that promote unrealistic claims of financial success that they can’t fulfill.
While there have and are still going to a much lesser degree, there are companies that operate on the thin line of being disreputable, the vast majority of MLM, in my opinion, follow the law.
Now the difference of being lawful and being a good opportunity to join may be two different things. The main problem is the company is more interested in profit to the company leaders and share holders then to the marketing representative. While this is true in the brick and mortar bushiness to some degree, MLMs tend to turn away from helping any of the representatives become very successful. This is done in the rules of compensation that they have.
During the companies recruiting phase, you are told how you get paid through various methods of direct sales, down line compensations, sales funnels and other means of reimbursements. Then when you actually start working with the company, certain things that weren’t mentioned in the “presentation” pop up and restrict your financial growth.
More MLM Details
Here are some of the basic characteristics of an MLM:
1. Participants are required to purchase and resale products at inflated prices. Requires inventory purchases to earn a bonus.
2. Participants not only purchase inventory but many times collect money, provide customer service such as product exchange, refunds, etc.
3. Often use celebrities to promote products.
4. The participant who joins in the beginning is higher on the “totem pole” then someone who joins in later times. The higher in the model the more financial gain.
5. MLM companies lack stability because they usually promote products that are more of a gimmick then one of real need. The fad wears off and the company disappears.
6. MLM companies tend to fail because there compensation plan usually favors the “chiefs” and not the “Indians”.
7. Low customer retention and lack of repeat business. The product may be a one time purchase, thus little or no repeat business.
8. Prior MLM experience and contacts are necessary to succeed.
9. While a business main purpose is to make money, lack of consideration for the participant dooms the success and longevity of the company.
While these characteristics pertain to many MLM companies, you cannot stereo-type all MLM entities. However many of the above characteristics apply to a lot of MLM companies. So be aware of whom your are dealing with!
Some of the Non-MLM companies will be:
1. Direct Sale. These companies do not require you to recruit other participants but simply sell their products for a commission. There is no “down-line” commissions because there are no participants “under” you You may or may not have to buy inventory first, depending on company policy. Normally you may have to perform some customer service tasks. Again depends on company policy.
2. Affiliate Sales. In this type of business model, you usually need a website to “advertise” the product. Often reviews and other write-ups go along in the promotion. The host company deals with the product,shipping and customer service in all areas. The affiliate simply helps in promotion. It is possible to promote as an affiliate without a website through advertising in more traditional way such as newspaper ads, fliers, bulletin boards etc.
3. The Ultimate Business Model. One of the best business model in the Internet Marketing area who have been around over 30 years . They have withstood the test of time and competition. They provide the best of consumable products which means repeat sales each month They are normal day to day products we all use.
There is a company who specializes on integrity, honesty and one of their goals is helping people meet their financial goals in life. This is without all the negative aspects of an MLM. Here are some of the things this company is not:
1. Does this require selling and stocking of inventory?
2. How about shipping out products or delivering products?
3. A lot of customer service work and hassles?
4. There certainly has to be a big investment upfront?
To all of the above questions, the answer is NO! This company is not an MLM (Multi Level Marketing) and there is absolutely no selling involved. If there were, I would not be in this venture.
So what is the cost? The administrative fee is only $19 per year. First you join the best wellness club in the world as a customer. After you become a customer you may sign up to be a Market Executive, there is no charge or investment, you pay nothing more. If you want to be just a customer, that is ok too.
As a Market Executive you invite others to join as a customer or business partner. You get paid for each one you enroll, based on their monthly product order. There are also bonuses for each level you reach.
Because your income is based on the number of folks you have enrolled, the amount of their personal order each month will determine the amount of current and residual income for the month. Thus you don’t have to start over each month from zero, as these products are consumable. The re-order rate is about 96.4% each month for current customers .
What is unique about this company is that you can earn bonuses by helping those in whom you have enrolled obtained their goals through coaching and tutoring. In fact to advance to higher ranks (more income) you have to help some of those whom you personally enrolled reach certain levels. The more you help others, the higher your level of income will grow.
With some companies, it seems that only those that begin with the company when it is just starting, are the only ones earning anything. This company is not like that. For example. someone you enroll may surpass you in earnings or you may pass your enroller. You are not held back because of a higher level enroller that is not doing as well as you are.
This concept is very unique as the owner and founder wanted to build a company on integrity and trust. They have the finest products on the market. WHY? Because they are made with all natural ingredients. Thus they are much more healthy, great for the environment, fresh because they are made in the USA and shipped to you in days.
What kind of products are we talking about? Here is a very partial list:
1. Cleaning products.
2. Terrific vitamins that work.
3. Bathroom and bathing products.
4. Energy and health bars.
5. Detergents and other laundry products.
6. Coffees and teas.
These products are made with natural ingredients and are “green” friendly and are highly concentrated, thus they last a lot longer.
Check out the website http://alive-naturally.com for more information on products.
What do I have to do to get started? You may click on the above website for further product reviews. All business partners begin as customers so everyone is equal in product buying.
When you enroll as a customer you may also fill out the form to be a business partner. There is no EXTRA expense or investment to be a business partner. No up sale charges for being coached or mentored.
All business partners are also customers and your minimum order may be only $50-80 month. However these household products you buy, are products you would get elsewhere at your grocery or drug store. So you not adding to monthly expenses, just changing where you buy them.
Whether you enroll as a customer, or are looking for supplemental income or want significant income you will be very glad you took this step.
Then click on the link below that will take you to our sight and follow the instructions to receive more information:
We Hope This Article was Informative!
Thank You for Reading
Bill and Sue