Saturday, April 27, 2013

What exactly is Multi-level marketing?

Many people say that MLM, or multi-level marketing is a scam, a pyramid scheme, or something worse. And they avoid  them like the plague. They would rather get their products from a retail supplier than from a real person/company.

There are so many MLM companies out there, from Nutrition, to make up, from candles to cooking. Think Pampered Chef, Mary Kay, Scentsy, Beachbody, and of course, Advocare.
Each company has a line of products, of their area of expertise and they have people to sell their products.
People who love and believe in them and are willing to share them.

Big companies, like Coca cola, Procter and Gamble, Budweiser are not multi-level marketing companies. They are retail sales. They pay millions of dollars to advertise every where. Billboards, TV commercials, and in magazines. This costs alot of money.
On the flip side, companies like Advocare and Scentsy, and most other MLM, do not advertise in that way.
They count on the the people who know their products and love them, to share them with others. This takes risk on the person that is the companies 'face of advertising".

The fact that the companies don't pay to advertise, does not change the excellence they seek. The fact that they don't sell to the Walmart or Target, does not take away from the value you are getting. Instead of Walmart making money, the person who is the representative for said company, makes the money.
The profit margin on these products are no different or, even less than companies like Coke.
For example, Coke sells 2liter bottles at Walmart for $1.00, how much do you think it costs to produce?
About 10 cents.
That is a 900% mark up.
Think about when you go to the theater, and pay $5 for drink. It costs them less than 50cents for that, and they have inflated the costs, by nearly a 1000%. But as consumers, we spend the money.

And it's not the host or cashier, making that money. It's the CEO's of the company that are making the big bucks. So, where is the pyramid scheme?? It's corporate America.

Donald Trump is a firm believer that direct sales or network marketing, is a great a solid business. After all, would we trust the people we care about, our friends and family, or do we trust a billboard???
Matt Morris, the writer of the book "Unemployed Millionaire" explains that companies that I am talking about, give families the opportunity to stay home, raise their family and have a "paycheck". Home based business, like these companies, can give you exactly what you need.  Building residual income, is a great way to become debt free and start living life.
After all, you go to drive to work, work all day, all to pay for the house  that you leave vacant all day and to pay for the car that gets you there....

Not everyone is wants to put themselves out there. They would rather go to work, and collect a paycheck. And make their boss, and boss's boss rich. Instead of working hard, to make their dreams become reality.
It can be done. Yes, you will have to work at it. But if you do, and you find the company that gives you what you want, what you love, you can do it!!
It's not about selling, it's about sharing!! Sharing something great, both in products, and financial freedom.

So, now you know. It's not a pyramid, if there is a product, after all, pyramid schemes are illegal. It's a way to get further in your life. It's about sharing something you love, and know the value of sharing.
Helping others win, is what network marketing is about. Helping others see, what you see and do what you do.
In health, both body and financial!
Barb








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