11 November 2012

Multi-Level Marketing at a Glance

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I've already neglected some of the categories I have written before so let us refresh those categories and go back to business category.
MLM or Multi-Level Marketing is a strategy or scheme where a member gets commission not just from their sales but also from the people and they recruited. Sometimes compensation comes from 1st generation or direct recruits up to variable generation. Some call this scheme Pyramid Selling, Networking / Network Marketing, Referral Marketing. They come in two types; online and offline.

I've joined a lot of online MLM before and it was really a good income if you really work for it. Online MLM has lots of ways you can earn like getting bonuses from pairs, having up to 8th generation earning which means you'll get more from your downline's downline's downline up to whatever the company has promised you. It's amazing how many people (like me) where lured on this. Most of this are selling e-books or sometimes none at all, which means you earn only by referring and no useable products for you or to sell.

Oflline MLM in some way is the same with offline but most of these business are selling products. Having a downline makes you earn more incentive from their sales too. It's like a word-of-mouth marketing because it mostly involve a person to person marketing unlike the online MLM which you can promote and just leave info on the internet and then someone can join.

Now a lot of people criticize this scheme to be scums. This could be most probable with online MLMs and I've joined a few before so better beware of these companies. Well, in my opinion, as long as the company is selling a product (tangible) and useful to the consumer then I think they aren't scams unless they are not paying the people of their hardships in selling the product. 

When we look at our job and our company, who would be at the top? Where are you located in your company's organizational chart? Are you at the mid-level or the lowest-level? Does the organizational chart look like a pyramid? In your company, whenever a product is sold who benefits most to the income? You'll be probably paid a fixed profit only or an incentive of a percentage of a big sales. 

I've seen a lot of growing companies but the lowest-level mostly stays the same after years of working. However in MLM, when you work hard, you get compensated really well. Of course the top-most usually earns a part of your earnings but it is part of the business everywhere you go. I actually saw a MLM where you can earn more than your upline if you really work hard and your upline is lazy. Their product is really good and very useable. 

So that concludes it. There is no problem joining these kind of businesses but be extra careful in joining. It is best to investigate first before you join. I guess if the company is already established for a long time and has a very good product (legal) to sell and marketing plan then it is good.


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