Forbes describes MLM as:
“MLM is a marketing strategy in which the sales force is compensated not only for sales they personally generate, but also for the sales of others they recruit, creating a downline of distributors and a hierarchy of multiple levels of compensation.”
That’s a fairly simple way to explain it, really. We get paid to sell product or services. And, like a sales manager, we can get paid on the sales volume of our team (our “downline”).
When someone asks me, “What is MLM?”, I try to answer it with some real world examples.
I might ask, “Have you ever recommended a movie to a friend?”.
They say, “Sure”.
I ask, “Did you make any money from that recommendation?”
This is when they usually look at me funny and ask something profound like, “Huh”?
I can’t help but chuckle and say, “Imagine if your favorite coffee shop, movie theater, book store, shopping outlet, clothing store, nutritional supplement store, etc… were to not only thank you for referrals, but PAY you every time one of your referrals buys from them.”.
Usually, they start to get it. Then, I ask, “And if you could find other folks that want to do what you do, and the company agreed to pay you for those referrals, would that help you leverage your time and make even more money?”.
The lights start to come on for some. For others, they still just look at me like I’ve lost my mind somewhere along the way.
If you are one of those folks asking, “What is MLM?” take a look around this site to see a number of ads offering you information. Recognize that many large corporations are using the MLM business model to open new markets and expand.
I can tell you that it is worth looking in to. You may find some great products or services you can use. You may be pleased to find out that you can earn commissions by referring others to those same products or service. You may find that you can supplement your income or even replace your current income with this business model.
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