What exactly is multi-level marketing? There is always so much debate on the topic; however it is important to fully understand exactly what it is. Firstly it needs to be stated that multi-level marketing is a specific kind of marketing strategy. This marketing strategy relies on the sales people recruiting their own additional sales people. Therefore the sales force makes money both by selling and by recruiting.
The sales people which the sales force recruit are called their “down line”. These people who are recruited below them are then told to also go out and recruit people. This eventually leads to multiple levels of compensation. Other terms which may be used are: pyramid selling and referral marketing.
Relationship referrals are one of the biggest ways that the sales people are required to make sales. Different words are used to describe different types of marketing. Some of them may sound very similar, which is sometimes where the confusion lies.
There are usually different incomes generating levels, which are structured according to the amount of people that have been recruited. The more people who have been recruited, the more opportunities there are for making money. The idea is that eventually all you are doing is recruiting people and making a bit of sales but the rest of your income is being generated for you, by the people you have already recruited.
Individuals usually will receive compensation from the sales of the down line members. From a financial level, this is why the concept can become appealing to some people as distributors generally earn commissions for the sales which are made by the people they have previously recruited.
Although multi-level marketing is a legitimate business strategy and is not illegal in it, it always seems to attract controversy. One of the biggest reasons why there is so much controversy with these programs is that pyramid schemes which are illegal, will often pretend to be engaged in legitimate multi-level marketing.
In many cases when the focus is too much on the recruitment and not on the actual product itself, then this can be a prospective warning sign. There is also a huge difference between multi-level marketing and get rich quick schemes. Get rich quick schemes usually never work and often require you to pay money upfront.
The truth is that almost any service or product could prospectively be sold through multi-level marketing. This puts many different industries at risk including the health and fitness industry. It is highly suggested that you always do proper research before buying or selling anything.
When something offers a “miracle cure” like a weight loss product or a build muscle product, then it may be useful to be a bit skeptical. Everything worthwhile in life requires hard work and dedication.
Even if you decide to be involved in an authentic multi-level marketing opportunity, it is highly important that you ensure that all the claims which you make about the product which you are selling, are true. In many cases the products may be sold with the use of fraudulent and insincere marketing tactics.