Sunday, October 22, 2006
Inside Multi-Level Marketing: A Brief History of MLM
Throughout, fairly recent history, about sixty years or so, multi-level marketing has been a prominent fixture in the business world. It all began way back in the middle 1900’s. Companies realized that their sales staff was generally made up of family members and friends of other sales members. The appeal was the fact that they could get products at wholesale prices, much cheaper than buying from a sales representative; therefore, they became members of the sales staff themselves.
Then companies began to realize they were easily finding several sales members that could sell a few products. Whereas, finding a top sales person who could sell in large amounts was much harder. Therefore, after analyzing these aspects they created a structure that combined the two aspects into one, along with compensation for sales, creating the very first Multi-Level Marketing company. With this new structure, they encouraged current sales staff to recruit new sales people. In the beginning, this was typically their friends and family members. Later, the practice was extended to any satisfied customer, giving them the equal right to make sales, buy products at wholesale costs, and recruit new sales members.
With this new structure, people were becoming sales members, selling products, and recruiting new sales member to make money. Groups were rewarded for their sales as a whole; this is where the downline aspect came into play many years later.
Everything has its good and bad
Of course, as with any new concept, especially one such as Multi-Level marketing, there were their downfalls, setbacks, and major image tarnishing, as other people sought ways to implement the idea into their own lives. This created the conception of fraudulent Multi-Level Marketing schemes. The very first known to the world, was in the form of a chain letter. This began shortly after World War 1 ended, where a chain letter sent across the nation, ask the recipient to send a specific amount of money to the person on the short list of names at the bottom of the letter. This amount was anywhere between 10 cents to 1 dollar. The chain letter led the way to what is known as pyramid schemes. This scheme occurs when there are no real services or products are offered for sale by the company.
Today’s Multi-Level Marketing
Today, Multi-Level Marketing is a thriving business that extends all across the globe from the United States to Japan and everywhere in between. The international Multi-Level Marketing industry is a 100 Billion Dollar industry that is showing no signs of slowing down. Multi-Level Marketing can even been seen in many of today’s top company such as Amway, Discovery Toys, AT&T, MCI, Sprint, Colgate, Gillette, Melaleuca, Mary Kay, Avon, and even Encyclopedia Britannica, just to name a few of the most recognizable names in the Multi-Level Marketing Industry.
There are a great many different products available for sale in multi-level marketing such as household cleaners, vacuum cleaners, nutrition drinks, diet drinks, vitamins, and cosmetics. In fact, these industries were invented thanks to multi-level marketing. Both the company and the representative can benefit from this technique.
The Company
The company benefits because it is not required to pay the sales representative until the sales of services or products have been made. This means they save money all the way around and run their company in a more efficient manner. For example, the costs of distribution are decreased because the product is not sent out until paid for. Furthermore, millions of dollars are saved in advertisements as well. Then you think even further in terms of costs and the company is saving money by not having to payroll based on hourly pay, in general no benefits are offered, and office, travel, and utility costs are dramatically reduced. It creates an efficient way to run a business all the way around.
The Sales Representative
The sales representative benefits in many ways as well. They have the potential to make as much or as little money as they want. Essentially, multi-level marketing is a work at home business. This leaves the sales representative the ability to control all aspects of their own home-based business. They can set their own hours, work as little or as much as they would like. There is no boss hovering over your every move. Many people like this idea because it leaves more time to spend with their family and they can work in their pajamas in the comfort of their own home, if they so desire.
Wrap it up
In conclusion, there are many reasons you should be considering a multi-level marketing company, just a few are outlined within this article. If you are looking to join a multi-level marketing company, do your research, talk to other friends and family members, and understand all aspects before deciding on any one company.
For more MLM info, go to Downline Autopilot at http://www.DownlineAutopilot.ws
Then companies began to realize they were easily finding several sales members that could sell a few products. Whereas, finding a top sales person who could sell in large amounts was much harder. Therefore, after analyzing these aspects they created a structure that combined the two aspects into one, along with compensation for sales, creating the very first Multi-Level Marketing company. With this new structure, they encouraged current sales staff to recruit new sales people. In the beginning, this was typically their friends and family members. Later, the practice was extended to any satisfied customer, giving them the equal right to make sales, buy products at wholesale costs, and recruit new sales members.
With this new structure, people were becoming sales members, selling products, and recruiting new sales member to make money. Groups were rewarded for their sales as a whole; this is where the downline aspect came into play many years later.
Everything has its good and bad
Of course, as with any new concept, especially one such as Multi-Level marketing, there were their downfalls, setbacks, and major image tarnishing, as other people sought ways to implement the idea into their own lives. This created the conception of fraudulent Multi-Level Marketing schemes. The very first known to the world, was in the form of a chain letter. This began shortly after World War 1 ended, where a chain letter sent across the nation, ask the recipient to send a specific amount of money to the person on the short list of names at the bottom of the letter. This amount was anywhere between 10 cents to 1 dollar. The chain letter led the way to what is known as pyramid schemes. This scheme occurs when there are no real services or products are offered for sale by the company.
Today’s Multi-Level Marketing
Today, Multi-Level Marketing is a thriving business that extends all across the globe from the United States to Japan and everywhere in between. The international Multi-Level Marketing industry is a 100 Billion Dollar industry that is showing no signs of slowing down. Multi-Level Marketing can even been seen in many of today’s top company such as Amway, Discovery Toys, AT&T, MCI, Sprint, Colgate, Gillette, Melaleuca, Mary Kay, Avon, and even Encyclopedia Britannica, just to name a few of the most recognizable names in the Multi-Level Marketing Industry.
There are a great many different products available for sale in multi-level marketing such as household cleaners, vacuum cleaners, nutrition drinks, diet drinks, vitamins, and cosmetics. In fact, these industries were invented thanks to multi-level marketing. Both the company and the representative can benefit from this technique.
The Company
The company benefits because it is not required to pay the sales representative until the sales of services or products have been made. This means they save money all the way around and run their company in a more efficient manner. For example, the costs of distribution are decreased because the product is not sent out until paid for. Furthermore, millions of dollars are saved in advertisements as well. Then you think even further in terms of costs and the company is saving money by not having to payroll based on hourly pay, in general no benefits are offered, and office, travel, and utility costs are dramatically reduced. It creates an efficient way to run a business all the way around.
The Sales Representative
The sales representative benefits in many ways as well. They have the potential to make as much or as little money as they want. Essentially, multi-level marketing is a work at home business. This leaves the sales representative the ability to control all aspects of their own home-based business. They can set their own hours, work as little or as much as they would like. There is no boss hovering over your every move. Many people like this idea because it leaves more time to spend with their family and they can work in their pajamas in the comfort of their own home, if they so desire.
Wrap it up
In conclusion, there are many reasons you should be considering a multi-level marketing company, just a few are outlined within this article. If you are looking to join a multi-level marketing company, do your research, talk to other friends and family members, and understand all aspects before deciding on any one company.
For more MLM info, go to Downline Autopilot at http://www.DownlineAutopilot.ws
# posted by Scott Fromherz @ 10:40 AM
Inside Multi-Level Marketing: MLM Defined
Are you looking for a new start? Are you looking for a new beginning? Do you want the chance to become a part of something bigger than yourself and all the while making big profits? Do you want the opportunity to run your own home based business? Then the answer to these questions is Multi-Level Marketing (MLM). Surely, you have heard the term MLM, but not always with the greatest of words behind it. Many people have a misconception about multi-level marketing, as a negative entity that only exists to take your money. While, I cannot deny that some multi-level marketing outfits are like that, the truth is a great majority are true, honest-to-goodness, businesses that will help you build your business from the ground up, with little to no money down.
So, before we go any further, why not look into exactly what multi-level marketing is, how it works, and why it would be beneficial to you as a home based business. Multi-level marketing is an arrangement, sometimes referred to as network marketing, which has one parent company, if you will. The sales team, is made up of independent contractors (which are the home based business operators) and each contractor is an associate of the parent company. Income is generated when the independent contractor sells the parent company’s services or products.
Now that is just the first level of this marketing outfit. You see, it is in your best interest to recruit new independent contractors and here is why. When you bring in new recruits, they are now in, what is called, your downline. The downline consists of independent contractors that you initially recruit, then the new recruits your recruits sign up, and so forth, it keeps going down the line, hence “downline”. Now what is great about these recruits and getting them is that not only do you receive a percentage of their sales, but a percentage of their recruit’s sales, and so on. This is where the real profits begin to show.
Now, with that said, you should be aware of some illegitimate multi-level marketing companies. The above, is what you should be looking for in any MLM company, for that is the way the entire business was intended to run. As with any idea, some people got it into their heads that things could be easier and you would not have to make any sales, you would only have to get recruits. You should avoid these ones, while it may seem easier it is farce, especially since people are much more aware of these types of schemes and stay away from them. When you are looking for an honest multi-level marketing campaign, make sure that you are compensated for sales, not for recruits alone. This is called the pyramid scheme.
The pyramid scheme is disguised to resemble the multi-level marketing campaign, but is far different and should be avoided if at all possible. Not that the pyramid scheme is anything new, remember the chain letters way back when? Think about those chain letters, you send every person on the list $1 or $5 and your name is moved to the top, with the promise, people will send to you as well. This was a pyramid scheme also, no services or products were involved. However, once people caught on, they began offering advice as the service or something similar.
Legitimate multi-level marketing companies have specific steps in place and will have everything out in the open. Look for a company that provides you with specific details regarding their compensation plan, how you can benefit at various levels, and real products or services for you to sale. Nothing in life comes free, so you will have to really work at it to make good profit. However, a reputable MLM company will provide you with everything you need to begin. Many will have marketing tools, advertising campaigns, training, and support for you as you begin your home based business.
Do not be afraid to sign up with a multi-level marketing campaign; simply be careful about the businesses you choose. Take great care in investigating the company, talking to other independent contractors, and reading everything on the website prior to making that first step.
For more MLM info, go to Downline Autopilot at http://www.DownlineAutopilot.ws
So, before we go any further, why not look into exactly what multi-level marketing is, how it works, and why it would be beneficial to you as a home based business. Multi-level marketing is an arrangement, sometimes referred to as network marketing, which has one parent company, if you will. The sales team, is made up of independent contractors (which are the home based business operators) and each contractor is an associate of the parent company. Income is generated when the independent contractor sells the parent company’s services or products.
Now that is just the first level of this marketing outfit. You see, it is in your best interest to recruit new independent contractors and here is why. When you bring in new recruits, they are now in, what is called, your downline. The downline consists of independent contractors that you initially recruit, then the new recruits your recruits sign up, and so forth, it keeps going down the line, hence “downline”. Now what is great about these recruits and getting them is that not only do you receive a percentage of their sales, but a percentage of their recruit’s sales, and so on. This is where the real profits begin to show.
Now, with that said, you should be aware of some illegitimate multi-level marketing companies. The above, is what you should be looking for in any MLM company, for that is the way the entire business was intended to run. As with any idea, some people got it into their heads that things could be easier and you would not have to make any sales, you would only have to get recruits. You should avoid these ones, while it may seem easier it is farce, especially since people are much more aware of these types of schemes and stay away from them. When you are looking for an honest multi-level marketing campaign, make sure that you are compensated for sales, not for recruits alone. This is called the pyramid scheme.
The pyramid scheme is disguised to resemble the multi-level marketing campaign, but is far different and should be avoided if at all possible. Not that the pyramid scheme is anything new, remember the chain letters way back when? Think about those chain letters, you send every person on the list $1 or $5 and your name is moved to the top, with the promise, people will send to you as well. This was a pyramid scheme also, no services or products were involved. However, once people caught on, they began offering advice as the service or something similar.
Legitimate multi-level marketing companies have specific steps in place and will have everything out in the open. Look for a company that provides you with specific details regarding their compensation plan, how you can benefit at various levels, and real products or services for you to sale. Nothing in life comes free, so you will have to really work at it to make good profit. However, a reputable MLM company will provide you with everything you need to begin. Many will have marketing tools, advertising campaigns, training, and support for you as you begin your home based business.
Do not be afraid to sign up with a multi-level marketing campaign; simply be careful about the businesses you choose. Take great care in investigating the company, talking to other independent contractors, and reading everything on the website prior to making that first step.
For more MLM info, go to Downline Autopilot at http://www.DownlineAutopilot.ws
# posted by Scott Fromherz @ 10:13 AM
