What is an MLM?
MLM stands for Multi-Level Marketing and it works as follows.
Someone starts a company and needs a way to promote that business. The owner can spend lots of money getting celebrity endorsements and prime time commercial spots or they can set up an MLM.
So they choose to market their business with an MLM strategy and they send out the idea to a bunch of people who would be interested in their business. Those people get invite codes to bring in more people.
You get invited to be apart of an MLM, you also get an invite code and are able to recruit more people. Every person you recruit helps your chances of making more money than before.
This is due to a ladder effect when it comes to sales; for every sale you generate you may get 40% of the profit. If one of your recruits makes a sale you may be 10% of that profit, and 5% of their recruits, and so one until the percentage is too small to calculate.
MLM sounds like a pyramid scheme
Yes, in most cases this type of endeavor is a pyramid scheme and very little money is made unless you are on the top of the ladder. Every so often there is a company that will be able to make you money from this method of marketing. But, the majority of companies using MLM to promote their business are shady and you should stay away.
Since they are not spending money on advertising they will be able to give you a larger chunk of the sale; but be careful with MLMs.
If you have to pay money just to join it’s most likely not worth your time and will be very hard to make your money back let alone a profit.
The better MLMs are free to join and work as a commission. They have products they want to sell and instead of hiring a sales team they allow anyone to join.
After joining, you promote their products and for every sale you make you get a commission. These commissions tend to be pretty high since the company does not have to pay for advertising.
I have been a part of a few MLMs in the past. Only one did I ever receive a check. It’s just not my cup of tea since I don’t like to sell to people.
I’d rather provide valuable information to those who need what I know. This is why I blog and I encourage others to start a blog. You don’t have to sell, you simply have to provide.
By providing great content your readers will be more than happy to support you. This can be in the form of buying a product or service that you review on your site, paid content that you create for a fee, or donations to the site to keep the content flowing.
Within an MLM you are still working for someone even though you are independent from them come tax season. You have to play by their rules and follow their guidelines.
With your own blog, you create the rules and guidelines. The only person you have to answer to is yourself but it’s a good idea to listen to your readers as well.
Do This Before Joining an MLM
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