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THE BARE-BONES BASICS OF MULTI-LEVEL MARKETING


Multi-level marketing is the biggest growth industry in the
1980's. It is the industry that has made corporate giants of
Amway, Shaklee, Mary Kay and Herbalife. It has been termed as
the last true rags-to-riches opportunity left in North America,
and its ability to bring enormous incomes to almost anyone is
legend. In fact, it is expected to make more new millionaires by
1990 than any other industry, and soon after will be the single
most popular method of bringing new products to the consumer.

The first multi-level companies sprung up in the 1930's, but
they were dinosaurs compared to modern marketing strategies. It
wasn't until the mid 60's that MLM gained international
prominence. In 1985, it is estimated that $5 billion worth of
new products will be sold by this method.

MLM offers the opportunity for anyone to operate their own
business. For less than $50 in many cases, you can get involved
with a legitimate MLM program and earn from $100 a month to
hundreds of thousands of dollars a year. Most incomes naturally
fall between those two extremes, but the earning potential in
almost any good company is virtually unlimited. The only limits
are set by marketer himself, by his time, energy, persistence,
and faith in his product the people he works with. A superstart
in MLM need only be a caring, sharing person, energetic and
highly motivated. Some of the most amazing success stories in
MLM have been hard-luck Harry's and bored housewives with no
previous marketing or sales experience.

The root of MLM success is the sponsoring of new people into
their businesses, much in the same way sales agents find new
retailers to handle their products. Successful organizations
such as Amway and Mary Kay have thousands of distributors, but
even these had to start with one or two motivated people
sponsoring a few other motivated people.

The ultimate test of an MLM company is the quality, price and
reusability of the product. A good firm is usually founded on
products with rapidly expanding popularity, day-to-day use in
the home, and a regular repurchase required. They should be
better quality and at least as competitively priced as the same
goods bought in stores.

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Here are the barebones mechanics of MLM

1. You become involved with an MLM company first as a customer
because the product offers substantial quality and savings.

2. Because the products are good, you tell others about them.

3. Rather than send these people to your distributors, you
become a sponsored distributor yourself for these new people.
And if these people, let's say the are five, know five other who
will buy the product, you have 25 people buying products through
you.

4. If these 25 each know five people, you have 125. If those 125
know five people, you have 625 at the fourth level buying
through you in a distributor's network you built from only five
people. If these people purchased only $30 month worth of
products, that would be $300,000 in gross sales, and you could
expect to earn at least one quarter of that figure, probably
much more.

5. Commission and bonuses vary with product and company, but
most go through four to eight levels, and have two or three
levels at which substantial higher commissions are paid. This
encourages new distributors to build those levels.

6. Some of the networks-inside-of-the-networks will end at
certain levels with people buying but not sponsoring new people.
And some will involve more than five people. Distributors will
always be your best customers and biggest moneymakers.

7. The best companies are the blue chip firms offering a wide
range of products such as Amway and Shaklee. New ones emerge all
the time and some of the faddier MLM companies die quickly. but
they can still make good money quickly for distributors with
established "downlines".

Choose your product line carefully, recruit heavily and always
expand your business education as you grow. MLM is a big field
with big rewards for anyone, absolutely anyone who can commit
themselves to success at any cost.