I am pleased to see that you are asking ,0:13 What is an MLM Company, as there are many myths and stigmas out there in the market place regarding the MLM or Multi Level Marketing profession.
The best explanation that I can give you as to What is an MLM Company, is simply, that it is a different business model to that which most people are used to.
0:29 What is considered a “normal” business, have a product range that they sell through traditional brick and mortar stores or online through their website.
In the traditional business model, in order to get word out to potential customers and to keep existing customers aware of them and keep them coming back into their stores, they have to spend money on marketing and advertising.
1:01 Marketing and advertising is a considerable expense and needs to be worked into the overall cost of bringing the products to market
1:15 Let’s now look at What is an MLM Company and how they differ in the way they operate.
In the MLM Company Business Model, the company structure itself is quite different in that, although the MLM Companies, all have their own product ranges, it is the way in which they bring their products to the market place that is different.
The first major difference is that in the in the MLM Business Model is that they do not have brick and mortar stores and this creates a considerable saving on their overheads.
1:42 Word of Mouth Marketing, by independent business owners or distributors of the MLM companies is the way their products and services are sold.
When we look at What is an MLM Company, we see that their independent business owners are able to purchase the products from their MLM Company at a wholesale rate and then on sell it at a 2:19 retail rate and by so doing they earn a commission on the difference.
It is easier to understand the MLM Business Model or Multi Level Marketing Definition by comparing the similarities to Franchise Business Model.
When buying a franchise, the business owner buys the rights to run their business under license to the master franchise holder. The cost of the initial license and then on going royalties as a percentage of sales, makes getting started with a franchise out of the reach of most people.
On top of the costs to get started, it can often take many years for the franchise owner to recoup their initial investment.
Again, when we look at What is an MLM, we see that the independent business owners have a relatively low barrier to entry into the business, which is normally well under $500.
Independent business owners in an MLM Company are then able to approach people in their warm and cold markets to encourage them 2:26 to become a customer or alternatively get involved in the MLM Company themselves, as an independent business owner or distributor.
Once they have signed up as a distributor, they now have the rights to earn commissions off product they sell directly and they also get 2:44 an override on any product sales brought in by other independent business owners that they recruit.
For this reason, the MLM Business Model is successful, as the people who get involved with a particular company are normally raving fans of the product and happily spread it by word of mouth.
I hope this has answered your question as to What is an MLM Company?
4:09 Should you be considering joining a MLM Company or MLM there are things you need to consider.
Click Here NOW https://www.youtube.com/watch?v=SGXl6KFX0dM to see a video that will help you in deciding which MLM Company is the best fit for you.
Remember also, that a MLM Company is a Business and takes hard work to grow and make it succeed!
If you treat it like a business, it will pay you like a business.
If you treat it like a hobby, it will cost you like a hobby!
My goal with answering the question What is an MLM Company, is to help all those considering getting into the business realize that it is NOT a “get rich quick scheme” but a serious business that requires hard work and persistence and dedication.
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What is an MLM Company – https://en.wikipedia.org/wiki/Multi-level_marketing