With the current economy, multilevel marketing is getting more popular among entrepreneurs. There are a number of MLM opportunities wherever you turn these days- not only online, but even in schools and in offices. Dedicated entrepreneurs lobby their small business through multilevel marketing. There are small businesses or enterprises (Avon, Tupperware, MaryKay, Amway, etc.) that have already proven the power of Multilevel Marketing. Many small business owners have taken the advantages of this compelling “marketing strategy” and incorporated it in their overall marketing plan. With MLM, they have relatively increased their brand recognition and ultimately their boost sales.
Yet, there are still a number of people in the corporate world that are asking questions like- How does Multilevel Marketing works? Does it actually work? Is MLM a scam? Is it for me?
Have you ever wonder why people are immediately turned off at the mention of Multilevel Marketing? Simple!!! These people have a negative mindset and are sceptical about MLM. Maybe because some of them just half-heartedly know about this strategy, have not even tried it, or most likely failed miserably. Let us get to know MLM and try to shed light on some misconceptions.
So what is Multilevel Marketing or MLM anyways? This question is the most commonly asked by people who are relatively new to the industry and the concept. And this question needs to have a direct and straight answer!!!
Multilevel Marketing (MLM) is a marketing strategy (business model or marketing structure) which is designed to create a marketing and sales force by compensating promoters or independent distributors of the company’s or business’ products not only for the sales they personally generated, but also for the sales that the other promoters or distributors they brought (recruited) into the company. This will lead to the creation of a downline of promoters or distributors and a hierarchy of multiple levels of compensation in a form of a pyramid. Many highly regarded companies or businesses are using this business model and have successfully created a brand of their own. The products of small businesses are usually directly marketed to the consumers and potential business partners by means of relationship referrals and word of mouth marketing.
MLM is also known as network marketing and referral marketing. Multilevel marketing businesses have grown massively over the decades. It is popular among home-based small businesses and those business-minded people who want to create a business quickly. A multilevel marketing business requires you to invest time and money. you need to be competitive in order to generate leads and win sales. In MLM, you need to work your business online and other marketing media (such as message boards, forums, paid advertisements) in order to attract the number of leads and get serious prospects.