what is an mlm company?

WHAT IS AN MLM COMPANY?or What is Network Marketing?

with Freedom Mompreneur by Design JoAnne Mbonigaba

www.freedommompreneurbydesign.com

http://www.freedommompreneurbydesign.com




• Before we get started, let’s look at the baseline which is Traditional Business.

• Traditional Business is usually defined as a business that has a store front where consumers come in to purchase their products or services. Like a restaurant, employment agency or retail store.

• It usually involves a significant commitment of capital upfront and the hiring employees to assist.





• Now let’s tackle what is an an MLM Company and how it differs.

• An MLM Company is a multi level marketing company that traditionally does not have a store front and instead focuses on enabling people who like and use their products/ services to go out and socially sell to those they know.

• It usually involves a little to no upfront investment and instead of hiring employees, people recruit others to join their team and benefit from the products and the compensation plan.





• The next company question is an MLM Company a pyramid scheme or scam?

• An MLM Company or network marketing company is a legitimate way of doing business when done correctly. Unfortunately, like in all industries there are some who do not. Here are the keys to knowing a genuine mlm company:

• There has to be a product or service. If you are just contributing money to climb “the ladder”, this is not a genuine opportunity, avoid any such scheme





• Keys to knowing a genuine mlm company (cont’d):

• The person who shares it with you are they more focused on recruiting or you experiencing and loving the product/service. Research the company as well and see what the consensus is. If there is a heavy emphasis on recruiting and little clear information on the product/service and the value you will receive. This is a company to avoid.






• The value of the product/service should be in excess of the cost of the product/service. This is key because in successful network marketing companies, approximately 80% of their business/sales come from people who love the product/service and use it without actively sharing it ,so there must be clear value that exceeds the cost of the product.






• When and if you are ever introduced to a company by someone and you are considering the product/service for a potential secondary income stream, ask yourself:will enjoy working with this individual and their team? Research that individual and other members of their team. Even if the company is a great and solid MLM, you want to choose wisely who you choose to partner with.





• So, why do some companies go this route rather than the traditional route?

• It’s simple and proven, word of mouth marketing continues to be the most powerful and effective method of marketing, especially, when that message comes from those whom we know and trust!Traditional companies spend millions of dollars each year to market their products and services while an mlm company takes part or all of that money and puts it into a fair and solid compensation plan that rewards individuals for using word of mouth marketing to sell and distribute their product.





• Here is an extremely important word to the wise and key tip for your success if you choose to go into network marketing or mlm.

• This method of marketing is NOT about bugging your friends and family members, as many would love for you to believe.

• INSTEAD, It is about your ability and skill to share socially/ indirectly AND then answer questions from those who show interest in the products or services that your company has to offer…





• Second to really excel in network marketing or in the MLM industry it’s about two things

1) Personal Excellence and 2) People skills

• If you want to be the captain of your life AND are willing to a)invest in educating yourself on how to successfully run a small business, b)invest in others because you enjoy working with people and seeing others succeed then network marketing just might be right kind of business for you.

• If on the other hand, you’re only in it for the money or you just don’t like dealing with people well then…… You’ll most likely end up failing!





SUMMARY

TRADITIONAL BUSINESS MLM COMAPNY

Store front or physical location where people can come and buy product or

service

Representatives who share socially, link arms with other like minded

individuals and sell to people who know and trust them.

Usually requires significant initial investment (cash/capital)

Usually requires small to no initial investment (cash/capital)

Needs time and effort to grow into a sustainable and profitable business

Needs time and effort to grow into a sustainable and profitable business





SUMMARYYOUR STEPS FOR SUCCESS IF YOU ARE CONSIDERING MLM

1: Find a product or service that you love and trust ( you can fall in love with a product upon hearing about it yet ALWAYS try the product/service first!!)

2: Sign up as a distributor with a good team and leadership

3. Learn effective marketing strategies- invest in yourself to grow your leadership and knowledge in social selling4. DO THE WORK. Know that it may be a little messy at first and you will make mistakes yet go out and do the work, earn the income and then show others how to do the same.


what is an mlm company?

Small Business & Entrepreneurship