How Do You Make Money In MLM And Who Gets Rip Off?
Tuesday, July 31, 2007 at 04:24PM Secrets Of MLM Online Success - How Do You Make Money In MLM And Who Gets Ripped Off?By [http://ezinearticles.com/?expert=Jim_Keayes]Jim Keayes
Now there's a great question!
I know lots of people who like to take the victim role that are totally convinced that anyone making big bucks is ripping the little guy off.
So let's put that one to bed…in MLM the little guy is a volunteer!
It's not that anyone is getting ripped off. It's the simple fact that in all businesses a small handful of high achievers make significantly more income than the average.
MLM is not a job where you're on a fixed salary and have to beg for a raise, while the President is entrenched at the top making the big income. In MLM everyone is the President of their own business and they can write their own income check…if they want to work for it.
You start in MLM the same place everyone else started and from then on it's up to you. In the typical compensation plan you can make some money selling the product at retail. Often the retail price is quite prohibitive so you end up selling at wholesale-customers like to feel they're getting a deal--and you earn the distributors override on your product sales. That override varies, but in my MLM company, its 10% to 20% depending how my business is structured.
Many people like to start by setting up a network of preferred retail customers, often around the world, who can order and pay for their own products online. A series of emails keeps you in touch and many of these customers find customers of their own so they enroll as a distributor. And so your business grows and your income grows via your 10% to 20% override on sales.
It's a very efficient process, but by some this is considered the slow way to start. But on the plus side the income is typically all residual so it's a rock solid business.
Others, and possibly this is the majority, like to make the override on the bigger sale of the starter packages, so they begin with a program of recruitment and teach their new associates to do the same.
Getting customers is often an overlooked segment of MLM, where many associates focus on recruitment and personal consumption only.
In my opinion if you want a rock solid business then you want to do both; teach your team to make sure their monthly qualifying volume is more than covered by retail sales. That way they're always making some money and they don't fall away. Besides, getting customers is a lot easier than finding a willing candidate for sponsoring.
In a business built like this you truly can retire on your residual income!
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Jim Keayes is an expert Internet and MLM Marketer. He teaches people to be successful online.
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Reader Comments (1)
Jim is absolutely on with this article. A successful MLM business begins with a rock solid customer base. If people love the product, they will be a customer for the long haul. A very important point is that you have to have "contact" with your customers. A successful MLM is all about relationhips first.