A Basic Guide To The Multi-Level Marketing (MLM) Network

Dear Reader and Friend

When surfing on the internet most of the advertisements are referring to the multi-level marketing. Maybe you just decided to get your home business running and you ask yourself what the heck is all about multi-level marketing and you really get confused about all the advertisements and you don’t know what to do. Let’s get a little bit to the basic that you know what all is about.

Multi-level marketing (MLM) is also referred to as network marketing. The MLM is essentially a type of business model that combines direct marketing with a type of franchising. The phrase business model describes a vast range of informal and formal models that are used by companies to represent various aspects of business, such as operational processes, organizational structures, and financial forecasts. The function of the MLM business is enrolling nonsalaried salespeople to sell products for the companies and meanwhile earn additional sales commissions based on the sales of people who are enrolled into their down line, an organization of people that includes direct recruits, recruits, and recruits and so on. This is an arrangement that is similar to franchises where royalties are paid from the sales of individual franchise operations to the franchiser as well as to an area or region manager.

There can be multiple levels of people receiving royalties from one person’s sales. New MLM members may be required to pay for their own training and marketing materials, or to buy sometimes a significant amount of inventory (merchandise) to start their career.

The compensation plans vary from one MLM business to the other, but there are basic plans in place. The Unilevel or Stair step Breakaway plans are the oldest and most popular in the MLM business. These plans features two types of distributors either managers or non-managers. The pay method of these plans includes Base shop overrides where there are overrides of managers from their subordinate non-managers. This method is the same as any other type of sales organization. Generational overrides are overrides of managers from the base shop of managers who were previously their subordinate. Most plans compensate at least three generations of such managers.

Executive bonuses are commissions for managers who exceed a posted sales quota. For example, a certain percentage of the total company sales revenue may go to a bonus pool that is shared monthly to managers who exceed for example $10,000 in that month. Commissions are based on the aspect of cycles, where a distributor is paid a fixed amount whenever both legs achieve a certain number of sales units each. Commissions are paid incrementally when the sales volume in each leg matches.

In recent years, the MLM business has seen an image problem due to its resemblance to the illegal pyramid or other similar schemes. MLM businesses operate in the United States in all 50 states and in more than 100 countries all around the globe. Many pyramid schemes try to present themselves as legitimate MLM businesses. In the legitimate MLM companies, commissions are earned only on sales of the company’s products and/or services. No money may be earned from recruiting alone through sign-up fees, though money earned from the sales of members recruited is one attraction of MLM arrangements.

A commonly adopted test of legality is that MLMs follow the so-called 70% rule which prevents members “inventory loading” in order to qualify for additional bonuses. The 70% rule requires participants to sell 70% of previously purchased inventory before procuring new orders. There are however variations in interpretations of this rule.

Some attorneys insist that 70% of purchased inventory should be sold to people who are not participants in the business, while many MLM companies allow for self-consumption to be a significant part of the sales of a participant. The Federal Trade Commission offers advice for potential MLM members to help them identify those activities that could be scams.

To Your online success

Talk to you soon

Anton Winkler

http://www.homedealsolution.com

Facts About MLM Home-Based Businesses

Dear Reader and Friend

Have you ever asked yourself when starting an own online business, what do you need?
Especially if you like to get involved with MLM home-based business.

The basic needs for a MLM home-based business to succeed include a decent computer, a high-speed internet connection and a desire to be successful. Many companies involved in network marketing MLM have major money learning the ropes of network marketing and have slowly become proficient at it and are now seeking others to help their business continue to grow. Some may cite noble reasons to wanting to share their methods and a few may simply say they want to grow bigger and make more money and need your help to do so, but the bottom line is their methods have been proven to work and if you follow their lead, you can be successful as well.

MLM home-based businesses are an excellent source of extra income as long as the facts of such businesses are known. In addition, there are certain aspects the MLM home-based business owner or the member of this type of business needs to examine from time to time. The MLM home-based business owner or the team member should initially examine the MLM home-based business statistics available on the internet as well to gain a better understanding of this type of business.

The following is a detailed examination of those evaluation aspects concerning a MLM home-based business:

1. Denial- Most of the people involved with MLM home-based businesses lose money. This is a simple fact. If a team member or owner is spending more money than their producing on the MLM home-based business, the venture is a failure. This evaluation aspect takes into account that there are advertising, start-up, and other expenses as well.

2. Line Duplication- Certain members of an upline have success placing an internet wanted ad for distributors. This particular action cannot be duplicated in that it would not be effective for the entire MLM home-based business team to perform the same action.

3. Numbers- Most MLM home-based business owners or members don’t closely look at the numbers of their businesses. Pay particular attention to the various parts of the MLM home-based business (i.e. time value, sponsorship, downline members, etc.).

4. Run it like a Ministry- Some people that run MLM home-based businesses believe their products depends on the world’s survival. This is an excellent mindset to possess for a MLM home-based business.

All of these evaluation aspects must be positively confirmed to have the success and profits for a MLM home-based business. There are many MLM home-based business opportunities on the internet and in paper publications as well. An interested person should carefully research a chosen MLM home-based business, and apply these evaluation aspects to it after a time experiencing the MLM home-based business. Additionally, the interested person should find the MLM home-based business that allows personal time investment, instead of large amounts of money for the venture. Essentially, a MLM home-based business idea that requires a person to utilize free time as capital along with a small monetary investment is a venture that’s less risky but has lots of potential for providing generous earnings.

Tu your online business success

Talk to you soon

Anton Winkler
http://www.antonshomedealsolution.com

A Legitimate Home Based MLM Business Opportunity Possesses These Things

Dear Reader and Friend

Today I like to inform you about some facts you should know when deciding to join a multilevel business. It is always better to evaluate the right decision before joining a company and pay in advance money to get started, but to recover your investment it is very difficult or sometimes impossible because it takes time to recruit people in your downline and therefore it takes time to get commissions paid.

With the number of multilevel marketing opportunities available on the internet, it can be difficult to determine which ones are legitimate opportunities and which ones are borderline illegal. In the past, many pyramid schemes that counted on recruiting others into the pyramid to make money without offering any real product or service in exchange for their investment, left people out of millions of dollars and caught the attention of law enforcement which has made them illegal to operate and you better stay away from them.

As a result, many variations of the multilevel marketing plans have been created to offer you a thin veil over the fact that they are still pyramid schemes and therefore illegal. Fortunately, there are few signs that point to a multilevel marketing opportunity being legitimate with a real opportunity for making real money by selling real products. Five things to look for when considering if an MLM business opportunity is legitimate include the following:

1. Sales of real products at a reasonable price

2. Enough information for you to make an informed decision

3. Training about the product

4. Resources to enable you to make product sales

5. Recruitment is an option and not mandatory

Many companies may offer product sales to slip in under the guise of being a legitimate MLM opportunity. If the company requires their distributors to buy the product in order to be eligible for sales commissions, it probably is borderline legitimate. If they require you to recruit new members into the distribution line before being eligible to earn commission, it is not a real legitimate opportunity.

Any literature, online or offline promoting the MLM opportunity should contain enough information about the product, the potential for sales and a realistic approach to income potential to allow a person to make an informed decision. Too many times, the entire pitch is focused on how much money a distributor can make but very few obtain it. One big red flag is a picture of an alleged sales person standing by a fancy car in front of a mansion. The car may have been rented long enough to drive to a fancy neighborhood where the picture was taken.

The product being sold should be the main focus of the information as well as its marketability, its competition and price. When looking at a product consider if you yourself would be interested in buying it at the offered price and then consider how many you might be able to sell.

The company should also offer support and other resources to make the job of selling their product easier. Many people will pay a higher price for quality merchandise and if the company is offering top-notch merchandise at a reasonable price, it may be a good outfit to join.

While recruiting distributors to work under you is common in the multilevel marketing business it should not be mandatory. Any company that demands a certain number of recruits before paying commission on your sales, is not one to bother joining. Additionally, they may also stipulate that the commission on the first or second sale will go to the person who recruited you. Stay away from these opportunities, as the commissions you earn should belong to you not the next person up the line.

There are some MLM-opportunities where you can earn money when purchasing products online and offline. With this MLM-opportunity even if you cannot recruit new people in your downline you earn money through saving when purchasing in one of his over 170 000 offline businesses and more than 600 online businesses. You even can print your own coupons with a few clicks on your computer before you go shopping. You get discounts in movie theaters, sports events and travel arrangements. If you travel a lot because of your business you can save tons of money with your discount card.

Talk to you soon, to your home business success

Anton Winkler

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Network Marketing (M.L.M.) - MLM Opportunities

Dear Reader and Friend

You hear nowadays so often the word MLM-Opportunities, MLM-Network-marketing, etc. What does MLM stands for?

MLM stands for multilevel marketing and means that you sell on a one to one basis and you establish a direct contact to other people over the internet.

There is a lot of off-line-business like AVON, TUPPERWARE, and MARY KAY and so on. These companies have a very large network of distributors who sell as an independent distributor products and also services.

In the internet hay lots of MLM-opportunities and the list is growing daily. These MLM-offers are suitable for people who like to start an online home based business. This type of business allows you to work easy from your home on your computer. Most of the MLM-Opportunities offer direct-marketing without having to contact people…you just promote their business with your own website which they give you and you earn commission for every referral you bring to their business.

With some MLM-Businesses you have to sign-up as a member and you pay a monthly membership and get month by month a product you select when subscribing to their membership. When referring a new member you get your referral positioned in your downline-stream. You get paid monthly commissions as long as your referred member maintains his membership and purchase or better receives his monthly products.

With his membership subscription he decides which type of product and which value he accepts to receive on a monthly basis.

The Multilevel Marketing has recruited millions of people in America and also all over in the world and it’s worth billions of dollars. You can compare it with the encyclopedias selling many years back. In the online world you not get only from the sale of the product but also from the recruitment. The market is covers cosmetics, nutritional products, and many other products.

The Network Marketing is an ideal opportunity for new entrepreneurs to start-up with their business, because they get everything from their company even their own web sites. They only have to advertise their products or services over the internet. Many people start their sales with their friends, family members or fellow worker.

Even though I do not like to sell to friends and family members even if it is a secure sale because it is in many cases involved with problems when for example the friend cannot afford the product or it is not that easy as you promised and so on. When starting a business you have to decide to whom you sell your products and services. It might take more time until you sell or you refer the first person to your downline.

There is one particular MLM-business I found very attractive for a home based business and even for your part time business. It is focused on saving money through a membership card which is valid in many countries now all over the globe. You promote your site with that membership card and besides the small membership-fee you can purchase online and off-line and safe lots of money at sporting events, golf, shopping, vacations, travel, and hotels and so on. You can download coupons directly from your computer and save money in shopping centers. When referring a new member you get commissions on top of your savings.

These businesses are a simple way to increase your monthly income. But as every business there is also a certain risk involved, the risk to time an money. You risk your money with the monthly payments until you have some referrals in your downline and you’ll start to earn commissions. But in my opinion the risk isn’t that big when paying between $20 and $100 bucks.

It is essential that you select your companies to subscribe to and that the company is well established and has a few years in this business. You have to investigate before you make your selection for your business. This type of business is dominated mostly by women (80% compared to only 20% men). An important factor is to work together with your sponsor which will help you without charging you and gives you the inside-tips you need to succeed.

However before you sign-up one has to be wary. It involves some kind of labor and a risk to your time and money. If you have your business part time you should be aware of focusing a certain amount of time per week.

There are a few main points someone has to keep an eye on:

- The price of the product compared with the quality of the products or services offered because it speaks directly for the credibility of the scheme.

- Don’t accept schemes that require and investment other than of buying the stock.

- Don’t sign-up of a minimum purchase requirement under no circumstance no matter how attractive the offer may sound.

- Don’t accept companies that offer a commission for the mere act of recruiting others.

Sign up for companies who have been working in that field for a minimum of 3-5 years.

And also be sure that it is the kind of business you like to get involved with.

Talk to you soon, to your success

Anton Winkler

http://antonsprovencashresults.com