Archive for mlm
What is Leverage in an MLM Business
Posted by: | CommentsThe term “leverage” is often used when explaining the benefits of the MLM business model.
In traditional sales, one person only has so many hours in a day to sell their products or services. This obviously puts limits on potential income.
In MLM you can get paid for all the sales your team makes based on the rules that define your companies compensation plan. Income is usually shared by the person who makes the sale and their upline. There are a variety of MLM compensation plans. How compensation is shared and how many levels up it is shared varies from one company or compensation plan to the next.
Since the compensation is shared in MLM the commision to the person making the sale is generally going to be considerably less than a similar sale in the traditional sales model. So one would ask why would I want to share my commission and make less?
The answer is “Leverage”. By building a team (downline) you will get paid small amounts on the efforts of many. Those small amounts can add up to many times what you could earn by yourself. Remember your time limits you to how many people YOU can touch in a day. A growing team can reach an unlimited number of people.
The top income earners in most companies don’t sponsor that many people or have that many personal customers. For example it there are leaders making over 6 figures a month in an MLM’ with less than 20 personally sponsored distributors. Those 20 turn into thousands down x levels. That is Leverage!
The other advantage of creating leverage by building a team is that your team will continue to work when you don’t or can’t! If you are in a traditional sales position and get sick, go on vacation or retire you are no longer making sales or earning commissions. If you have built an MLM team and get sick, go on vacation or retire your team will continue to make sales and you will continue to earn.
Network Marketing “Old School” vs. “New School”
Posted by: | CommentsThe internet has changed the Network Marketing industry dramatically in many ways. None bigger than how It has provided a place for Networkers to recruit beyond their warm market and to do it without leaving their home.
One problem I see is that many people have drawn a line in the sand between “Old School” networking and the “New School” internet model. Many people promoting the “New School” model make it sound like it is an either or choice, when it is not. I can’t tell you how many times I have heard or read “old school is dead.” The facts are “Old School” is not dead. Many and probably most of the biggest whales in MLM built their businesses “Old School”. Many and probably most of the biggest MLM companies, with real products that will be here 20 years from now, were built “Old School”.
I have built very large organizations with thousands of personally sponsored reps and almost all done online. I also built a personal customer base of over 15,000 for a nutritional product online. These large organizations included many warm market and other “Old School” recruits and customers in my down line and I my bank account has been far better off because of it.
So I am not an old time “Old School” networker trying to hold on to the past. I believe the future of networking certainly moves further and further to the internet but it is a mistake to just write off “Old School”.
MLM organizations need people and not every future networker can be found online. People get loyal buyers and recruit low hanging fruit out of their warm market and that is not going to stop. The internet is great for networking and where I choose to market myself and my business but there are many, many Top networkers who barely no how to turn on a computer who I would love to have on my team.