Getting Started With MLM – The Myths and Facts
MLM or Multi-Level Marketing is a very popular business model built around the idea of having a pyramid of commissions that fuels incentive throughout the entire chain of command. Many people cringe at the P-word and automatically associate it with some type of Ponzi scheme or scam, but it is a legitimate business strategy that can be wildly successful in the right hands. The system is built on a firm foundation of financial incentive, the more people that an employee has in their down-line (sources of commission), the more money they make. If you play it smart and build your business in a way that benefits from lots of new recruits, MLM can turn uninterested employees into enthusiastic goldmines.
There is a lot of unfair negativity surrounding MLM businesses, mostly because people either don’t realize how widespread it is or don’t understand how it works. There are a lot of downright falsehoods that are becoming too oft-repeated for comfort, so it’s high time to clear the air of a few myths. The fact that you’re reading this means MLM has sparked an interest in your business strategy, so let’s give you some peace of mind and debunk some common worries.
This is totally false because the entire system relies on the employee’s desire to increase their pay, so anyone must be able to make a decent income on any level of the company for it to work at all. Not only would it be unethical to run a business that deprives its workers of fair pay, it would be unfeasible to sustain and highly illegal.
Myth: MLM’s simply don’t work.
There are many people around the globe earning a very good living by working in the MLM industry. Paul Zane Pilzer, author and economist, predicts 10 million new millionaires in the next decade and says the majority will come from the MLM industry. It’s certainly difficult to argue against the effectiveness of a well-thought-out MLM business when all the numbers are saying otherwise.
Myth: They are get rich quick schemes and scams.
MLM ventures take time to develop and prosper, they take solid planning from business professionals and a firm grasp on the current marketplace climate. Anyone trying to sell the idea of MLM as an “easy button” for success is no more than a snake-oil peddler; MLM is a business strategy that should only be used by those responsible enough to manage the finances of their company effectively.
If you’re looking into joining or starting an MLM business, the best advice is to analyze and research what you are getting into extensively. Not every MLM business is exactly the same, and not all of them have the same structure of payment. You can quickly find yourself in a financial and PR nightmare if you are unlucky enough to have mishandled an MLM venture, which can be somewhat attributed to the aforementioned stigma surrounding it. The easiest way to get started using MLM to grow your business or brand is to hire a specialist and educate yourself as much as possible, have an expert crunch the numbers. Find someone who knows MLM inside and out and have a nice long chat with them before making any big moves.
I hope this has helped you think about your mlm business ideas! I have an article titled The 7 No-Compromise Criteria for Choosing a Long Term MLM Business that you will enjoy.
MLSP just makes good business sense if you are going to build an MLM strong and for the long term.
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