Here are the top frequently asked questions about network marketing:
1. What is MLM?
MLM stands for multilevel marketing. It is a business model where the company finds an intermediary to sell their product to end consumers and the intermediaries earn the commission based on the personal sale and they also recruit new members or downlines to the business and new members, in turn, recruit another downline and it goes like a chain process. The intermediaries also earn the commission for the indirect sale happened through their recruits.
2. How to make money through MLM?
You can earn a good amount when any personal sale happens and you also earn a commission when any sale happens through your downline or team members. The commission rate depends upon the plan followed by the organization. It is always some percentage of the sale happened.
3. Do people really make money doing this?
Yes, but the only people who do are those who treat this like a business and work at it every day. Money is made when products or services are sold within your network, so if you want to earn a solid income, you’ll need to recruit a network of people who are buying and selling products or services. The company provides excellent training and will be there to help you succeed, but ultimately the success or failure of your business is up to you.
4. Does this require sales?
Do you enjoy sales? If not, that’s great, because you don’t have to be a salesperson in order to succeed. This is a business of sharing information, and there are great tools that’ll help you present the products/services and business to your candidates. All you do is work with those who are interested.
Now, if you like sales, that’s also great; people who are good at sales often do very well in this business.
5. How much time does this require?
That’ll depend upon your goals. If you would like to make a few dollars a month, you could probably invest five hours a week or less. However, if you want to develop a full-time income so that you can fire your boss and enjoy more freedom of time, then you’ll need to invest at least 15 hours a week. The great part is that there are tools to help you leverage that time.
6. How to promote the MLM products in network marketing?
As an MLM distributor, to promote the MLM products, you can keep in contact with your downlines, family, friends, etc. Keep regular meeting with your downlines to promote the MLM products, send e-mails to the customers in contact, create a social media group to promote the MLM produce, conduct a party or seminar to show your product demo and MLM presentation.
7. What type of products are used for this business?
MLM business mainly concentrates on the products which are consumable. Consumable products involve healthcare, beauty products, nutritional products etc. These type of products will be used by the customers or distributors so they come up with new order for the product.
8.Is MLM an illegal business?
There is a common misunderstanding that pyramid structures are illegal. It is not the structure only the pyramid schemes are illegal. Almost all organizations follow pyramid structure. The top person CEO supervises middle management. Middle management, in turn, supervises the working employees. Look into the business and schemes not into the structure. MLM business is a legal business.
9. How huge the MLM industry?
It is really a very huge company. Approximately more than 50 million people are involved in this MLM business. More than 100 billion of sales happen per year.
10.How long MLM has been there in the industry?
Hope you all know Amway, It was founded in 1959 and at the same time Nutrilite started just 10 years before. One more MLM company Watkins, it’s been more than 100 years. We can roughly say that around 60 to 100 years MLM has been there in the industry .
11. What is MLM System?
MLM system is the multi level marketing tool which is used to manage all the tasks related to MLM business operations like managing the MLM network, payouts, commissions, MLM reports, etc. The efficient MLM system will make the MLM business more effective.
In the Philippines, one of the leading provider of MLM System is Geer IT Solutions, Inc. They are providing app, software and websites to their customers.
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