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

Dear Reader and Friend

When talking from Multi-level marketing (MLM) is most of the time referred to as network marketing. The MLM is a type of business model that combines direct marketing with franchising.

The term business model describes a vast range of informal and formal business models that are used by companies to represent various aspects of business. That can be the following:

-- Operational processes
-- Organizational structures
-- Financial forecasts.

The basic function of MLM business is enrolling nonsalaried salespeople to sell products. But they also earn additional sales commissions from the sales of people enrolled into their downline.

This business type is an organization of people that includes direct recruits, recruits' recruits and so on.
This arrangement is very similar to franchises where you pay royalties from the sales of individual franchise operations to the franchiser as well as to an area or region manager.
Depending on the structure of the business there can be multiple levels of people receiving royalties from one person's sales.

Some companies require from their new MLM members to pay for their own training and marketing materials, or to buy a significant amount of inventory or products to start their career.

The compensation plans vary from one MLM company to the other, but there are basic plans in place. The Unilevel or Stairstep 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 Baseshop 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 baseshop 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, 2% of the total company sales revenue may go to a bonus pool that is shared monthly to managers who exceed $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.

But in recent years, the MLM business has developed 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 other countries around the world. 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.Before joining an MLM Business one has to check all the aspects of how you get paid your commissions. In case you get paid only for recruiting would mean that you have to pay a sign-up fee or a monthly membership fee. You also can post questions in forums to see what experience other people had and take your decision accordingly.

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.

Talk to you soon

Anton Winkler

The Secret of Saving Money

Dear Reader and Friend,

You know the economic situation nowadays is not the same as it used to be. Everything is more expensive and you know as I do the income is always way behind the increase of the expense spiral.

As a business owner you have your fix expenses which you can’t just forget you have it always there if you like it or not.

Expenses as phone bills, clothing for children, school expenses, home utilities, home expenses like cleaning equipment, your car expenses like insurance, maintenance, tires, spare parts and the list goes on and on and is sometimes so long that you freak out and you get so frustrated that you don’t know what to do.

I tell you I was in the same situation until I found something that attract my attention…there is a flood of programs out there and it’s difficult to know which one works best for your situation and your business or if you not a business owner for your family savings.

This program I’m talking about is really amazing because it helps save Money on Shopping, Golf, Movies, Rental Cars, Hotels, Restaurants, online Shopping, even Sporting Events. It saves me money when buying Pizzas, Coffee at Starbucks, there are over 170,000 shops all over the world and more than 600 shops online and the number is growing.

With this exciting discount programs, you can start saving money immediately upon joining this program. In fact you can save HUNDREDS OF DOLLARS every month simply by taking advantage of the exclusive offers!

You now have the ability to save money on everything from casual dining to exotic vacations. And since this discount card offers savings WORLDWIDE, you can even save money on casual dining while you're on an exotic vacation! Is that not exciting!

When you a business owner and like to make money there is no problem because you can besides saving money and pay your membership of a measly sum of money and gain money on top of it buy referring members. You might say but to advertise my business I have to spend money and I tell you no because I came across an advertising system which does cost you no dime, nothing, cero and with signing up you have so many FREE PROGRAMS where you can gain a few bucks by subscribing to them.

I know the so called “gurus” promise you a lot of money within a short time or even hours but you should forget this kind of thinking and stay with both feeds on the earth and start slowly to gain money and advertise without spending anything.

These are programs that work for you in you daily business and these programs don’t promise you the stars from heaven they are real and cut to your needs. These programs help you really to get started and explain you almost everything in that fast changing internet business world.

To Your Success

Talk to you soon

Anton Winkler