MLM
53MLM- Network Marketing Concept
MLM is the abbreviation of multilevel marketing. For the success of MLM business one has to adopt various effective strategies.
MLM or multilevel marketing is a kind of direct sales in which individual distributors sell their products to their customers either visiting their home or over telephone. One of the most effective way of generating growth prospect in home business or even in networking business is cold calling. In MLM, distributor’s buy products from whole-sellers and sell them to retailers and in the process also hire other distributors for the same purpose and thus the chain grows. When enough distributors are registered the main recruiter receives certain percentage of the sales as commission. According to companies also there are great opportunities of making money. There should be a motivation factor that should be present for growing of this business. The key for networking business lies in the enthusiasm of the participants. When someone feels better after using a product or procedure, it is natural to give credit to whatever was done. However, it is not wise. Taking action often gives temporary relief of symptoms (also known as placebo effect). For these reasons, scientific experimentation is almost always necessary to establish whether health methods are really effective. Another factor in gaining devotees is the emotional impact of group activities. From time to time you are invited to interesting lectures where you meet people like you only. Then you are suggested to become a distributor. This keeps you busy, raises your income, and provides an easy way to approach old friends and make new ones -- all in an atmosphere of enthusiasm. People who increase their income, their social status, or their self-esteem can get a psychological boost that not only can improve their mood but also may alleviate energy levels. Multilevel companies refers this process as "sharing" and says that everyone involved in it are "winner” which is not true. The entire process is built on a foundation stone of deception. Here main winners are the company's owners and the small percentage of distributors who become sales leaders. Tim Altvater for bringhomethebaconnow.com Copyright 2007 bringhomethebaconnow.comPrintShare it! — Rate it: up down [flag this hub]
Power Advisor says:
2 years ago
For many of the reasons you listed above, I do not agree with MLM and network-marketing.
First off, no one should ever be forced to use such techniques as cold-calling. Not only is it embarrassing to have to do for the affiliate, but it is quite annoying for the consumer.
MLM companies often suggest that their members purchase expensive "leads." These leads are supposedly listings of individuals who have expressed interest in working from home. However, few MLM companies or affiliates ever look into exactly how the leads they're recommending or purchasing are gathered. More often than not, consumer information is sold or rented by companies that have nothing to do with home based business. A consumer may have singed up for a newsletter dealing with gardening, but their information became a part of a list that was sold to lead providers. Not only is this a shifty way to toss someone's personal details about the internet without their consent, but it also proves totally useless for the affiliate who purchases the leads, because these were not in fact individuals interested in home based business, but simple consumers from other sites.
I have been involved with MLM companies that encourage their members to go out into public places and chase people down, talk them to death, and try to force them into purchasing our product. I don't know of any ethical business that operates this way! If your product is truly worth-while and useful to a general market, you should not have to chase down customers, but rather set up shop, do a bit of advertising, and handle the interested customers that come to you.
With MLM, you also end up depending on your "downline" to keep your income going. Most MLM companies offer some type of residual income on every sale made by a person in your downline. However, if the folks in your downline were to stop working (to try and depend on the folks under them so that they can sit back and enjoy life as you're enjoying it), the flow of money stops. In my opinion, the purpose of a home based business is for an individual to take control of their own financial future, and to be able to dictate how much they earn instead of someone else being in charge of their earning potential. With MLM, this simply isn't possible.
If you're looking into home based business, there are better options than MLM companies. Regardless of what's said, MLM and network-marketing are NOT direct sales. With direct sales, you deal primarily with customers on an individual basis, payment is exchanged directly between the customer and the distributor, and the product is mainly of a retail nature, and doesn't require recruiting or sponsoring on the part of the distrubutor to earn, and continue earning. If you're serious about working from home, look into the advantages of direct sales. If you're going to be the one doing the work, be the one who dictates ALL aspects of the business, and be the one who gets paid first, no the one who waits on a check from the MLM company.