WWWHelper

Small Business Resource Center

Print This Page


Site Menu

FYI...

Bookkeeping Business (Offline or Online)
Starting A Bookkeeping Business:
"Attention Struggling Underpaid Bookkeepers" "Former Low Paid Bookkeeper Discovers Step by Step Strategy For Starting A Bookkeeping Business Fast...Guaranteed!" If You Would Like to Say Goodbye to Your Low-Paying Bookkeeping Job Forever, Th...

Everything You Ever Wanted to Know About Starting a Daycare
eBook About Everything You Ever Wanted to Know About How to Start a Daycare Business:
A Professional Guide to Starting a Daycare The demand for quality daycares has never been greater as parents seek to find a warm, caring and trust-worthy facility to watch their children while they are at work or at play. Entrepreneurs all over the world have been capitalizing on this trend...

Home Drop Ship Guide (Online and Offline)
Home Drop Ship Guide Will Show You How To Buy Wholesale, Drop Ship, Sell On Auction Marketplaces, How To Market And Advertise, And How To Make Money With Affiliate Marketing:
Let The Author Show You The Right Way To Drop Ship! The author will show you how to buy wholesale, drop ship, sell on auction marketplaces, how to market and advertise, how to make money with affiliate marketing, build/host your own website, make money by writing your own e-books, blogging,...

Become an English Language Conversation Tutor
Online eBook for Becoming An English Language Conversation Tutor:
Are you a Native English Language Speaker? Do you enjoy talking with students from foreign countries? You want to be a tutor but don’t have time to do a course? So, if you’ve always wanted to try tutoring English to English as a Second Language (ESL) students, now’s yo...

Small Biz Tip Category: Marketing
 
Small Biz Tip Menu
 
Blog Home ]   [ Announcements ]   [ Blogging ]   [ Home Business ]   [ Kick Start ]   [ Marketing ]   [ Tips And Ideas ]   [ Web Site Mgmt. ]   [ What Is... ]   [ All In Order ] 
 
Search Blog ]  ]   [ Add to Technorati Favorites ]   [ Subscribe To Raw XML file ] 
 

"What You Need To Know About Multi Level Marketing"


There are no comments shared for this Small Biz Tip.

Click here to be the first to share your comments for this Small Biz Tip.

Wednesday, August 26, 2009
For the uninitiated, multi level marketing is not entirely new to the business. In fact, it has been around the industry for more than half a century ago when it was introduced in the United States by a company, which, at the time was marketing nutritional supplement via this strategy better known as the network marketing. The main concept is to combine direct selling and franchising in one marketing plan. All the participants are encouraged to do both tasks in order to earn more money than by merely selling the merchandise.


How Does It Work?

Basically, the participants need to recruit additional members at the same time as they need to supply the products. By doing so, they earn commissions on top of the sale price. But multi-level marketing does not promise big profit from merely selling the products as members have the potentials to earn more from encouraging other people to signup and work hard to recruit others too until a pyramid-like group is formed. They are typically required to buy the products or services but they have to recruit at least two members to earn commissions from their purchased products.

The person on top earns commissions from their down lines the same way as the second, third, and so on and forth, from their down lines. Obviously, people who join this marketing group have high chances of earning larger profit if they have recruits or down lines or the latter continues to recruit new members too. Existing and the new members are considered the distributors and end users of the products or services.

Criticisms and Issues

Because of the rampant cases of business scams, the true essence of multi level marketing business model has been ignored as a true legitimate and significant marketing plan not only in the United States but in the global economy. The scheme was criticized due to the questionable process of recruitment where the members acquire their profit and revenue. It was in the 1980s when it further built a negative reputation when various companies allowed members to focus on marketing and neglected the need to distribute or stock the products.

It has resulted to the illegal pyramid scams, which resemble the legitimate multi level marketing concept, minus the product. While legitimate multi level marketing strategy has genuine scheme, pyramid schemes often are too good to be true that they inevitably collapse in the end because the company has become unable to compensate the exponential growth of newer investors.

Major Change

Because of the increase of the people becoming victims to illegal multi level marketing schemes, a major change was seen in the 1980s, when companies have begun performing the marketing strategy in a different way. Nowadays, they do it by recruiting new members, taking their orders, shipping the goods, paying the earned commissions, and then taking orders again from their members or clients.

Caution

If you have the intention to be involved in a multi-level marketing business to earn huge sum of compensation, it is vital that you know what company you are trying to become a member of. It would be a wise move to investigate the background and the capability of that company to pay the members. Doing the necessary measures is imperative to avoid you from becoming one of the unfortunate victims of pyramid scams.

Provided By: Ray Plumlee
Website Address Not Provided



This Small Biz Tip Entry Viewed 3,538 Times
The PermaLink for this Small Biz Tip is:
What You Need To Know About Multi Level Marketing
 
Small Biz Tip Menu
 
Blog Home ]   [ Announcements ]   [ Blogging ]   [ Home Business ]   [ Kick Start ]   [ Marketing ]   [ Tips And Ideas ]   [ Web Site Mgmt. ]   [ What Is... ]   [ All In Order ] 
 
Search Blog ]  ]   [ Add to Technorati Favorites ]   [ Subscribe To Raw XML file ] 
Go To Top Of Page