Saturday, August 11, 2007

What the heck is MLM ?

Multilevel Marketing, or MLM, is a WIN-WIN business system that is for selling goods or services through a network of distributors. It allows one to work at it seriously for ONE TIME and it can grow to generate passive monthly income FOREVER.



In a typical multi-level marketing or network marketing arrangement, individuals associate with a parent company as an independent contractor and are compensated based on their sales of products or service, as well as the sales achieved by those they bring into the business. This is like many franchise companies where royalties are paid from the sales of individual franchise operations to the franchisor as well as to an area or region manager.


In simple words, when you sign up under someone who referred you to that MLM programme, he or she is your upline, and you are his or her downline. You get commission mainly from sales from you yourself and your downlines.



Another good point about mlm is everyone in your team, both uplines and downlines are helping you grow your business. So it focusses on building relationships and team work, at the same time getting you close to finanial freedom.In order to build a long term and successful MLM business, you need 5 key factors:



1)A good product with growing demand

2)Recurring sales

3)A system that duplicates

4)Minimum or no investment risk

5)A committed team who will work actively

Often your upline will give you some help getting started, including training.Not all MLM plans are created equal and its very important that you read and understand the compensation plan totally.

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