Simple Truths About MLM

Network marketing or MLM, as it is sometimes called, has so much potential for so many people, but we need to clear up some misunderstanding that have given it a black eye. By simply focusing on what network marketing really is -- not what your uncle or your coworkers say it is -- you can make it work for you.

Okay, where should I start? How about with a Definition of what MLM is?

* Network marketing is a system for distributing various products, leaving the marketing function up to individuals (distributors) who are paid commissions and bonuses based on how much product sales they are responsible for.

* Network marketing removes a lot of inefficiencies and expenses in the process of distributing products from the manufacturer to the end user. This frees up large sums which are paid by most corporations to professional sales staffs, advertising agencies, warehousers, rack jobbers, and the profit margins of 50-100% typically required by retail outlets like WalMart, GNC, etc.

* By saving millions of dollars on all the above functions, MLM companies can afford to pay those savings out in commissions to multiple levels of sales associates. So, the average Jane or Joe earn much more than they could earn in almost any other occupation IF they know what they are doing, work at it, and enlist many others to help them.

Sounds great, doesn't it? Well, in principle it is, but there are many preventable mistakes and misconceptions that can get in the way of a new distributor's success. Let's consider just a few of those:

* Perhaps the biggest mental hurdle is the notion that MLM does not require work. Unfortunately, it is frequently promoted by less-than-ethical recruiters and companies in this way. Face it, folks: Work is at the heart of the name Net-WORK-Marketing! You are not buying a guaranteed winning Lottery ticket; you are buying what is essentially a franchise, but for a bargain price. You must figure out many things to make that franchise successful and only then will you get paid.

* Choosing the wrong company. Many network marketing companies go out of business for many of the same reasons most business start-ups fail: they are undercapitalized, they don't have an experienced management team, they choose the wrong product to market. The wisest course is to research the company you are considering, just as you would research any major investment. Go visit with the founders, if possible. Look at the financial records. If nothing else, read every legitimate 3rd-party report on the company and its products.

One of the easiest safety criteria is to never join a company that is less than five years old. That gives the company time to work out any bugs before you invest your time and money into building a business based on their ability to hold up their end of the deal.

Read the book How To Choose A Network Marketing Company, advertised over to the right of this post. That will give you a good foundation for comparing companies, hot products, compensation plans, etc.

* This last point is really important: You will need education in state-of-the-art marketing -- and most likely, you're going to need to find this on your own. This is an area most MLM companies are still in the Dark Ages about.

The best system I have found that explains everything from the mental attitude you will need to actually providing you with a free turnkey software package is called Magnetic Sponsoring, by Mike Dillard. It will show you how the Top Dogs got to the top in this business -- and, conversely, why the little people frequently get wiped out. If you want to succeed in this phenomenal business, you need to get this inexpensive, brilliantly written, package of education and tools.

There are many imitators, but Mike Dillard's Magnetic Sponsoring is the original. With this information and funded-proposal recruiting system, Mike went from waiting tables in his mid-twenties to earning a 7-figure-income in 18 months! Click on the Magnetic Sponsoring banner to the right of this post to get your copy.

And, yes, I will be compensated by Mike Dillard if you buy any of his products. I am grateful to the person who brought this dandy little book to my attention, so I'm thinking you will be, too.