What is MLM? MLM Or Network Marketing Explained

What is MLM/Network Marketing?

BusinessDictionary.com defines Multi-Level Marketing as a direct selling method in which independent agents serve as distributors of goods and services, and are encouraged to build and manage their own sales force by recruiting and training other independent agents. In this method, commission is earned on the agent’s own sales revenue, as well as on the sales revenue of the salesforce recruited by the agent and his or her recruits (called downline).

That’s great but lets break it down and spell it out.

The Basics

In every MLM there are what I call the Basics, these basics are the Products, the Company, the System, and the Plan. To gain a solid understanding of MLM you must understand each of these basics. Like everything in business it all starts with a Product.

The Product

The object of every business throughout the world is to sell products. Now, I use products in a loose way to mean tangible or intangible goods as well as services. Really, products are anything that can be sold by one and obtained by another.

So MLM begins with a Product that someone realizes has value and desires to sell to others. That person realizes the need to begin a company who’s task it will be to continue to produce and distribute this valuable product.

The Company

Once a company is formed, it must develop the production of this product. Whether the product is Information, Juices, Vitamins, Travel, Consumables, etc. it is the task of the company to create a brand and begin the production of this product. Production is underway and a brand has been setup now a company must determine the method of distribution. They have to figure out how to move the product.

There are a couple of systems to move products. Most of us are familiar with Retailing, that is the stores we shop at and buy the product from the shelf. Some are familiar with Direct Sales, this is the door to door sales man. I remember my parents buying Encyclopedia’s and Vacuums from Direct Sales people when I was a kid. Another system is MLM.

The System

Here is the heart of MLM. MLM is truly a system to move the product from the Company to the Consumer. It is based around the notion that people will buy from a person over a corporate entity. Different MLM’s work differently however the basics of the the system work like this:

A person is enlisted/sponsored as a distributor or independent agent (or whatever the company calls them.) The agent then is able to buy the product wholesale and then sell it retail. This is one source of income for the agent. These independent agents are also able to sponsor other independent agents to create a network or downline of other agents.

Most MLM’s will pay the sponsor a percentage of their downline’s sales. This is another source of income. Most MLM’s also include a Plan or a business opportunity through recruiting a sales team. This Plan is often what MLM focuses on as a huge source of income.

The Plan

The Plan is the business opportunity side of the an MLM. This involves the benefits of recruiting others into your downline to create that powerful sales force that is moving the product. Most MLM’s offer at least one financial bonus for recruiting other independent agents and achieving different levels of success. It should be mentioned that any solid MLM will measure success via Sales Volume.

The Plan is often times why people confuse MLM with Pyramid Schemes. A pyramid scheme though is a non-sustainable business model that involves the exchange of money primarily for enrolling other people into the scheme, often without any product or service being delivered. However as we explained above the purpose of enrolling other distributors is to increase the distribution of the product.

Each Plan will be different with various forms of compensation. All should include compensation from the sale of the product and as well as some form of compensation for sponsoring other distributors. Remember though that if you find an MLM based on recruiting others with an undefined product you should be leery. Because all solid MLM systems and plans know that the Product must Move or Nobody will get Paid.


Multi-Level Marketing in the end is a system used to distribute products from a company to a consumer through an independent agent. It offers an opportunity for anyone to become their own business owner and create wealth beyond their wildest dreams. This system, while often times looked down upon, has created more millionaires than any other industry. While I will never say that MLM is easy, it is a journey well worth traveling.

If you are already involved in an MLM business and are struggling to make it work. Let me tell you that I’ve personally tried the old fashioned outdated methods that so many uplines teach and realized that they did not work for me in the modern market. I realized that I needed a different way, a modern way.

It was then that I discovered the Exact Formula used by modern day 7-Figure Industry Leaders. Using this Formula I have been able harness the power of modern technology to put my MLM on Cruise Control. Never again will I pay for leads, cold call prospects, or have to sell my business.

Learn more about MLM and the Exact Formula other modern day Top earners use by visiting my more thorough explanation of MLM [http://www.cruisecontrol4mlm.com/articles/mlm-explained--simplified-8023/?c=30910].

From the Desk of Joshua Yearout, Network & Internet Marketing Coach

Joshua Yearout is a leader in the Network & Internet Marketing Industry. His path to the Top included, studying for Priesthood, Bartending, Developing Businesses, then obtaining True Freedom through MLM. Currently working Full-Time as a Network & Internet Marketing Coach his goals include living life to the full and helping as many other people achieve the same reality.

Email Marketing Benefits From the Zig Zigler Approach

If you send an email ad, and your prospect or customer doesn’t buy the first time, do you quit? Do you give up and assume that the decision is made, and the answer is “No?”

Zig Zigler is an American salesman, author and motivational speaker. He was born in 1926, the tenth of twelve children. When he was six, his father died, and two days after losing his father, he lost one of siblings…his sister. He faced adversity throughout his life, but developed a strong Christian faith, and a sales ability that brought him friendships, wealth, and admiration. His books, and the lessons he shares provide great insight into the nature of ethical selling. One of those lessons is the lesson of understanding. Understanding that “No” doesn’t necessarily mean “No.”

He never spoke directly to email marketing and its unique challenges in closing a sale, but certainly his lessons for successful sales apply to email marketing in the same way they apply to other marketing avenues. What Zig says, is that “when a customer says “No,” they mean “No,” and they won’t change their mind.” At least they won’t change their mind based on what they knew when they made the decision.

That doesn’t mean, however, that they won’t make a different decision when they have new information. Your job, whether you’re selling face-to-face, over the telephone, or through email marketing, is to make sure your customers or prospects have the new information that will allow them to re-evaluate. Your job is to provide new reasons, new benefits, new features or functions that will allow them to say “Yes.”

Let’s apply this to email marketing. Let’s say you’re a small business owner selling a service…landscaping. Last year, Joan Smith subscribed to your lawn and yard maintenance services, offered in an email advertisement, and received a 10% new customer discount. Since she isn’t a new customer this year, she isn’t entitled to the new customer discount. When you sent the email advertisement for this year’s services, she didn’t initially respond. Should you just accept her non-response as a “No” and go looking for more new customers? Or…should you follow up and see if you can find a reason for Joan to say “Yes.”

There are several strategies you might consider before sending your next email. You review your records and determine she was a satisfied customer. She had signed up to have her lawn mowed weekly, her flower beds, trees and shrubs sprayed for weed and bug control twice during the season. She had paid her bill monthly. Her season review…an email survey, of course… of the work performed was very good. When your salesman had called her in January, however, to see if she had any additional landscaping needs that could be scheduled for this year, she had indicated she had found another company online. She said she was considering using their service for lawn and yard maintenance…as they had offered her a slightly lower rate for the “same” work.

You investigate and determine the company she is considering offers a comparable service. They’ve only been in business for two years, however, while you’ve been in the landscaping business for nearly ten years. The benefit you can offer Joan immediately is the testimonial of hundreds of satisfied customers, with the higher probability of continuity into the future.

The first message you want Joan to get is one that congratulates her on making the wise decision to evaluate and compare services. Your primary objective is a satisfied customer. This is a good time to talk to Joan in person. If that isn’t possible, however, you can send a personal email that addresses her “stated” concern…cost of the services. “If it weren’t for the price that Company Y quoted you, is there any other reason that’s keeping you from signing up for our lawn and yard maintenance service now? I’m glad you’re looking for the best value available, and I believe you’ll find that’s exactly what we offer. I want to make sure that’s true for you, however, so I hope you’ll take a few minutes to answer a few questions about how you want us to provide lawn and yard maintenance. If you’re willing to take that time to help me provide the best service not only to you, but to my other customers, you’ll receive our Preferred Customer bonus. And if there’s any other way that I can ensure you continue to have the lawn and yard your neighbors envy, please call me directly at this phone number…”

Your bonus could be a discount for prepaid services for the season, it could be a discount on more services, or various other offers. However, many of your questions can and should be directed to helping Joan see the value that using a company that’s been in business for a long time brings, and should be linked to testimonials of satisfied customers.

And, of course, by responding to the survey, Joan has an additional “investment” of her time, and another reason to maintain your relationship. By providing a variety of new reasons, new benefits, new features or functions for Joan, you open the door for renewing and strengthening the relationship.

Why Getting New Leads Is The Most Important Part Of Marketing

What area of your business are you putting all of your focus on? If you said “getting more new customers”, then you are half-way there. A better answer would be “getting more new leads to put into my marketing process”. There’s a strong difference between the two, but we’re going to focus on getting prospects and leads into the marketing process.

The hardest part about marketing is that it’s tough to get a lead. To get about at least 100 offline leads per month, you would have to run a full page ad in a magazine or run a display ad for a long time. Accompany this by the fact that you’re probably not a master copywriter, and you could have a problem on your hands.

If you have the money, I would say invest about $10,000 to hire a master copywriter to write your ads and direct mail pieces. These copywriters are skilled in the area of understanding your niche, what it is that your prospects are looking for- and then creating a pitch that seems like the ultimate solution to their problem.

But if you don’t want to hire a copywriter, you can do it yourself. The first place to start is with a swipe file. A “swipe file” is simply a collection of winning ads and sales letters that you can look over whenever you need copywriting ideas. If I were you, I would start here and hand write all of the sales letters in your swipe file.

This will give you a good indication of what the copywriter was thinking, and their impressions will more than likely be your impressions, and you can use this frame of mind when developing your ads and sales letters.

Once you’ve written your first ad and direct mail sales letter, it’s time to put them into action. Run it in your newspaper, yellow pages, internet, or even a magazine to see how well the marketing piece is doing for you. Don’t promote yourself or your services – stay focused on the main issue that your prospects are facing in their lives right now.

Once you’ve discovered what it is that your prospects are desperate for, culminate your efforts into leading them to a phone number to call or a website where they can enter their contact details.

You want to run your ad all over the place (especially if it’s working) so that you can get a large pool of prospects and customers. You should be excited about this, because a large pool of prospects are the group of people who will spend money with you when they’re ready to make a purchasing decision.

You see a constant stream of new prospects will keep your business alive and thriving – and I’m sure this is what you’re looking for. Nothing happens until you get a lead – so remember that. If you want to see your business thrive and is alive and kicking, generate a lead first, and then follow up on them for more information.

Good luck with making your lead generation efforts work for you.