I am calling this post MLM Marketing 101 because it is going to be somewhat of an introduction into the world of multi level marketing and network marketing.
If you are new to the industry or are researching it this post is going to be a big help to you. I am going to explain exactly what it is, how it works, how you make money in it and what you need to do to become successful.
I truly love this industry and absolutely believe it presents the greatest opportunity for the average ordinary Joe to be able to create a tremendous income and lifestyle.
You can read about my story, however long story short the MLM industry changed my life forever back in 2005 when I first got involved.
Is it for everyone? No it’s not. However if you decide it is for you anyone including you can have tremendous success with it if you learn how to do it correctly and then go to work doing so.
Alright let’s get this 101 overview rolling…
The Basics of MLM Marketing
It is first and foremost a business model. A model that is 100% unique and different from any other form of business on the planet.
It is a model that is dependent on the sale of the company’s product through distributors.
The distributors of the company sell the product directly to their network of contacts and in many cases these distributors also recruit other distributors.
The distributors are responsible for all of the sales of the MLM companies products and in return the company pays a commission to the distributor for each sale made.
The company will also pay a commission to the distributor for any sale of product made by other distributors they personally recruited into the business. Entrepreneur has a good definition for this business here.
Many companies will also pay commissions back to a distributor multiple levels deep in their organization.
Meaning if the distributor they recruited recruits more distributors the original distributor is paid a commission on any of their sales as well. This goes on for multiple levels deep and why the business is often referred to as Multi-Level Marketing.
Companies that choose to use this business model do not have to worry about marketing or advertising their products to the public as the distributors do all of that for them. They harness the power of word of mouth advertising which is the most powerful form of advertising.
They also do not have to worry about the logistics of retailing their product in stores; they are able to skip having to do this because they ship their product directly to the customer. Which is why this industry is also referred to as direct sales.
Learn more about how the industry works here:
The Different Types of MLM Marketing Opportunities.
There are countless companies in the MLM industry and as a result it can be very difficult to figure out which is the best company for you to join.
Company Example #1 – There are companies that have none of the multiple levels we discussed. With these companies you sell directly to your contacts and typically earn a larger commission for your sale then you would with the companies that pay you on sales made on multiple levels.
Typically the products you sell here are larger, more expensive one time sale items. Water purifiers, vacuums, and juice machines come to mind when I think of these companies.
Company Example #2 – Other companies are what we refer to as the party planner companies. Mary Kay, Avon and the Pampered Chef are examples of these types of companies.
You become a distributor and are encouraged to host parties where you invite people over to try out the products. You make a commission on the sale of the products from the party.
You then attempt to get all of the guests who attended to host a party of their own for you, where they invite all of their friends to come try the products.
There is typically the opportunity to recruit other distributors with these companies however the focus is centered primarily on you selling products directly to customers.
Company Example #3 – Then there is my favorite type of company which are typically referred to as Network Marketing opportunities.
With these companies you share the business opportunity or product with people. When they buy the product you earn a commission.
When they join the business opportunity as a distributor they will buy a large amount of product to help them build their business, you also earn off of this sale.
The power and beautiful aspect of network marketing is in the multiple levels we talked about. This is where the walk away serious residual income checks are built.
Your goal is to build a team of distributors often called a downline. Together you and your team go to work sharing the opportunity with other people. As sales are made and people sign up as distributors you earn a commission on all of the product sales.
You could have thousands of people in your downline making sales and you earn a commission off of them.
You will end up not evening knowing the majority of these people and you will be earning off the sales they make. As will they and everyone else who’s team they are on.
It is a tremendously powerful business model that evens the playing field and allows everyone in the business to create tremendous success and wealth.
You can learn more about the different types of companies here:
How to Become Successful in Network Marketing
So as I have just shared, network marketing is my favorite business model in this industry. It is the difference between building a small business and a big business.
If you want to simply earn a few hundred dollars here and there then the other models we looked at may be for you.
If you want to create a six or seven figure income then you will want to join a network marketing company.
If you want to simply play store, buy some product and sell it to friends from time to time the other models are for you.
If you want to build a huge organization of thousands of people around the world and earn significant commissions then network marketing is for you and I am now going to show you how to build a successful business with this model.
Step #1 – Get Your Head Right
First understand that this is a business, it is not a get-rich-quick opportunity. It will take time to become successful. You are going to have to study and learn new skill sets. It is going to take work and effort and you are going to experience frustrations and setbacks.
All successful business people understand all of these things.
If you can get your head right about this and go to work in my opinion it is a very difficult thing not to become successful.
Step #2 – Choose the right company.
There are many companies you can choose to partner with. Some of them are great, some of them are good and some of them are terrible.
You need to do your due diligence and not just jump into the first opportunity that you come across. Take your time and do your homework.
Make sure the company is a good fit. Make sure the product is something you can get behind.
It would be a terrible thing to join a company, go to work for a couple of years and then realize you hate the company and even worse the product. All of that work would be for nothing.
Here is a post to help you find the best MLM company for you:
Step #3 – Get Trained
So many people who join the MLM marketing industry mess this up. They think they know it all. They think they do not need any training, that they know how to build the business.
Salespeople are notorious for this. They mistakenly think this is a sales business and that since they are sales people they are going to crush it and don’t need any training. 9 times out of 10 they fall flat on their faces.
This business is not sales. It is not like anything you have done before. It is unique unto itself. It is a simple business model but it does require that you learn new skills.
If you spent your life savings on buying a franchise you would take the time to go to their training sessions.
The same thing must apply here if you want to be successful. Get trained and learn the right way to build your business.
Here are some posts to get you started:
And there you have it my friend you have just mastered MLM Marketing 101.
For more training and to learn how to become a professional in this industry I recommend you sign up for my Free Prospecting Boot Camp. The sign up is on the side of the blog or at the bottom if you are on a smartphone or tablet.
Cheers to YOUR Success
P.S. If you found value in this post or if it helped you in any way, do me a favor and let me know in the comment section below.