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.

Summary

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.

3 Strategies For Effective Data Collection and Marketing Communications

You have a message you want to get out. That’s great. However, you have a lot of competition for the attention of your audience. Direct mail, TV and radio advertising, newspaper and periodical advertising and of course, internet advertising. And we have not even started talking about social media (for example, Twitter and Facebook). All of this competition for the attention of your audience could be bad news. The good news is that you have so many channels, or tools, to get your message out. With a little knowledge and some well-planned strategy your business can be one of the few that get the right message to the right audience at the right time. Here are three tools to make sure that your message stands out.

If you wanted to pound a nail into a wall, you would not use a pair of pliers. Likewise, if you wanted to tighten a faucet, you would not use a hammer. In other words, you need the right tool for the right job. That means you need to know two critical pieces of information: 1) what is your desired outcome and 2) what is the best tool to get you there. This is true in any endeavor, be it carpentry, plumbing or communicating. Here, of course, we are talking about communication, which is a good thing because I know nothing about either carpentry or plumbing.

On the other hand, I do know about communicating a message. Effective marketing and communications require you to start with the end in mind. What is it you want to accomplish? Ask yourself, at the end of this, what do I want to have happen? Without this critical piece of knowledge, you can never strategically get where you want to go. You could end up there accidentally, but it would take you a lot more time and a lot more money. In this economy, very few of us have extra time or money. I know I sure as heck don’t.

So what is the goal of your marketing campaign? Obtain more leads for your sales staff? Drive visitors to your website? Get people into a local restaurant? Have people buy their next car from your dealership? Create a robust online community? Whatever the answer is, you need a clear picture of your desired outcome before you can strategize how to get there. You then need accurate information in the form of accurate data and business intelligence so you will know what is relevant to your audience. Finally, your offer has to be one that allows a win for you and your audience.

SO LET’S TAKE A LOOK INSIDE OUR STRATEGIC TOOLBOX:

TOOL #1: KNOW YOUR DESIRED OUTCOME BEFORE YOU START
TOOL #2: CURRENT, ACCURATE DATA IS KING
TOOL #3: MAKE INTERACTIONS WIN-WIN
We will look at each of these in more detail in this week’s three part series Three Tools to Build an Outstanding Communication Strategy. So make sure you check back, or even better, subscribe to the feed. Don’t miss out on a tool you could use to build your business.

TOOL ONE: KNOW YOUR DESIRED OUTCOME BEFORE YOU START!

Good communication is never random. Never left to chance. There is a strategy behind the best, most effective communication campaigns. To come up with an effective strategy, you have to start at the end. That’s right, start at the end. By that, I mean you must determine what you are looking to accomplish with the campaign. There are some examples in earlier sections (I assume you have read the earlier parts of the series. If not, shame on you! But because I am a nice guy, here is a link).

Quite simply, you cannot start any journey without knowing the destination. Lewis Carroll summed it up nicely when he said, “If you don’t know where you are going, any road will get you there.” Even Plato understood this, stating in The Republic that “[t]he beginning is the most important part of the work.” A clear outcome is where you start your work.

What is the difference between a wish and a clearly defined outcome?

A clear outcome is well defined with start dates, end dates and metrics by which you can measure your success. Your outcome should be objective. Instead of “I want more leads,” you should be saying, “I want 5% of the recipients of this message to go to the web-landing page and register for our monthly newsletter.” In the first example, one new lead would meet your goal. If you are selling nuclear submarines, that might actually be your goal, but most of us are not in the business of selling one-offs. The difference in the second example is that you have a measurable, objective way to determine if your communication strategy is successful.

Once you have your outcome clearly defined, you have to strategize how you can reach that outcome. Let’s take the restaurant campaign as our example. You want to reach local customers and increase your customer base and your ability to communicate to your audience. The first thing you need is data. Data can come from many sources, but no matter what, data is king in this information age. You can use a list you have generated on your own or you can buy a list. Either way, it is a first step toward more effective communication.

You can also use a number of methods to reach your audience. Direct mail, email, internet advertising, text messaging, advertising, or combinations of all of them. As we are focusing on data, let’s look at a very basic, targeted customer acquisition campaign. First, you need your list. For this example, let’s say you have no data of your own so you need to buy a list. There are more companies selling lists out there than there are grains of sand on Cape Cod (hey, I’m a Boston guy; if it makes you feel better, you can say the beaches of Long Island – the point is the same). The key here is to make sure you use a reputable, list broker who keeps their list current and accurate. If your list is out of date, your campaign is doomed from the start.

TOOL TWO: CURRENT, ACCURATE DATA IS KING!

Which strategy do you think will yield better results?

1. I will send out mailers to 100,000 people to get more business.
2. I will mail 10,000 personalized postcards every week for ten weeks. Each card will have a personal URL so that the effectiveness of the message can be improved every week.

OK, that was a stupid question. Obviously, answer number 2 will get you better results. My insane pet dog even got that answer right (then he peed on my rug). Yet despite the fact that answer number one obviously results in a less effective communication strategy, I have seen more companies engage in that type of marketing than I have seen engage in the second method. Sometimes the obvious solution is not the easiest solution.

The ability to accurately measure results is critical to success in communication. Who saw the message? Who opened the email? Who read the post card? Who used the QR Code on their mobile phone? When did they read it? Who went to the web landing page and what did they do there? All of this information is easily ascertainable and it is extremely valuable.

With this list you send out a direct mail piece with a compelling call to action to visit a web landing page. In our restaurant hypothetical, you might offer a coupon for a free appetizer when you visit the web landing page and complete a brief survey and sign up for the restaurant’s newsletter. By doing this, your customer is opting into future communications. The survey might ask which pizza topping is the customer’s favorite. This accomplishes a number of things. One, you now have a list of warm leads who you know are interested in your product. Two, you know their preferences from the survey. Three, you have their permission to send them subsequent, targeted communications with specials and offers (this includes sending text messages…but SMS texting is the subject of another post). The point is that for the cost of a postcard and appetizer, you now have even more customers and even more accurate data. And as customers come in, you keep track of their orders, likes, dislikes and other relevant patterns. You build a great database.

TOOL 3: MAKE INTERACTIONS WIN-WIN!

Now that our pizza shop owner has all of this data, what can be done with it to help generate revenue? After all, generating revenue is the point here. SO let’s continue with our example. With the data collected data, our restaurant owner can send personalized email offers that match not only the customer’s needs and desires, but the restaurant’s as well. If you know you have a boatload of excess pepperoni, you might offer a free pepperoni topping with the purchase of a large pizza. You can target that message in an email or text message to customers you know buy pepperoni pizza (remember – you have been tracking customer buying patterns).

So now you have a win-win outcome. You, the restaurant owner, sells more pepperoni pizza when you need to, and your customers that love pepperoni get a price break on what they love. It is good for all, and that is marketing at its best. How can you leverage you company’s data to create win-win situations for customers and prospects? Do you need to start collecting data? Leave some feedback and share your experiences.

Workforce attitudes to health and safety

Housekeeping refers to the operation of farming or agriculture. It can also be used in connection with domestic and commercial services.

Housekeeping can be defined as the care of all aspects of an operation. It is meant to be clean, neat, and safe.

You need to keep a variety of areas safe and clean on an agricultural farm.

Traditional farming revolves around agricultural machinery. This includes combine harvesters, tractors, utility vehicles and various cars and trucks.

Depending on how the farm works, you may find different chemicals, machinery, and tools, which can pose a danger.

Housekeeping is about making sure all areas are safe.

Any area that can be called a “work area”, whether it is machinery, livestock or something else, must be identified as a potential danger zone. To ensure everyone’s safety, strict housekeeping protocols should be implemented.

The best housekeeping practices are to understand the proper storage of materials and equipment, how these items are used, and how mistakes or spillages are addressed or repaired.

Protocols that are not implemented in good housekeeping practice can lead to potential hazards. Housekeeping can be a preventative measure. It all comes down to attitude and practice.

The best housekeeping protocols encourage people to keep their area clean. This can include picking up any debris or rubbish that is left around and a more formal cleaning procedure with designated people to ensure that the areas are cleaned on a regular schedule.

Storage is critical, both on a practical level as well as in a mentality of good housekeeping. To this area, the old saying “a tidy head” applies. An area that looks messy could indicate that it has unsafe or sloppy practices. This could increase the risk of falling prey to other hazards.

Safety is the primary goal of housekeeping. Many people have come to view safety and the health of their family as something they are ashamed of or use it as an excuse to avoid danger. It’s quite the opposite. It is about understanding how risk works to decide whether a risk is acceptable, and taking any necessary precautions.

There are many areas to consider when discussing the importance of housekeeping with regard to a farm operation or farm.

The first is commonly referred to as the safety and security of the workplace. This simply means that it’s important to make sure that your workplace is safe.

The first of these is to ensure that all passages and walkways throughout the worksite allow people to safely use them.

Lighting needs to be sufficient and safe for the workplace. Employees should be conscious of the need to have emergency lighting in case there is an accident or fire that might interrupt the electricity.

Ventilation, however, is essential. Numerous farm buildings and other agricultural premises may have multiple uses. This could include the storage of chemical feeds or other potential farm products. Good ventilation is important.

It is essential to select the right type of flooring for the workplace. You need to have ramps and slip resistant floors throughout the premises so that anyone who is moving around or carrying machinery or goods can do it safely.

There may be sharp edges in many pieces of a workspace that are visible or barely hidden. Any door, frame, desk, or structure within a workplace with a sharp edge must be removed. Not knowing it exists is enough.

A sharp edge can quickly become a dangerous weapon if it is not dealt with immediately.

A workplace that is well designed should have plenty of signage. This is not only to make it easier for employees to work together, but also for fire safety.

It is vital that people are able to quickly follow a clear route in the event that there is a fire or explosion.

Many farms use hoists in various areas of their buildings. It is important that the hoists remain in good order. It is not good practice to find out that a hoist is not properly maintained at the moment it is needed. A protocol specific to hoists should show when they have been serviced, and by whom.

The most important factor in many ways is to ensure that toilets and handwashing facilities, as well as other amenities, are clean and maintained in a healthy condition.

Attitudes are the biggest obstacle to housekeeping within agricultural operations. This can often occur when the workforce has been working for a long period of time and isn’t open to changing.

This resistance does not always stem from practical concerns, but is often a result simply of safety and habit. When a workplace environment doesn’t change, it can be almost impossible to get comfortable. This process is often called being institutionalized.

It is commonly thought that institutionalisation refers only to large corporations like banks and insurers. This term can apply to any kind of business or operation of any size and where employees have been employed there for a considerable time.

One way to solve this is to hire more young workers and to expand the current workforce. They may even be able to be hired as workers themselves, whether they are apprentices, terms, or people with work experience.

They are more likely to be open to new ideas and will look at safety and healthcare in a more realistic and objective manner. This can have a positive as well as negative impact on existing workers.

It is possible for them to be more open-minded and see the positive side of things.

It could also lead to conflict within your workforce, between the existing workers and the younger ones. These people can be seen as arrogant or being a bit rude, believing they know better then their older colleagues.

This isn’t to say that it shouldn’t be used. Man management, if done properly, can have tremendous benefits to the workplace as well as the health and safety in the business.

It is possible to encourage young workers to report unsafe work areas. This can be inherently unsafe things or everyday things.

These include areas such as poor lighting, floor that needs sweeping or keeping clean; spillages normally from oil or grease on the flooring; and the most important of all, making sure that your toilet facilities are clean and hygienic.

Sometimesnew employees have more time to spare than their existing colleagues. There could be many reasons for this. However, one side effect is they may simply be told that if there is time on their hands they can do housekeeping work.

You can let them know that the workplace’s health and safety are very important.

You can think of any farm, or agricultural operation in environmental terms in one way. The easiest way to view it is as an environment. It refers to the physical area in which the farm works. This could be the land, buildings, animals, livestock, or any combination thereof.

These may cause issues with housekeeping. However, the time environment can also have an impact on the daily work environment. The buildup of materials and practices from the normal day can result in safety and health problems that can then be managed.

Dust is easily overlooked. It does not take much imagination at all to understand the amount of dust that can exist in any type, or agricultural business.

Of course, dust can also be a fire hazard. This is something that is often overlooked. This is often used to compare kindling. Anybody who has ever set a fire to a piece of wood will understand that the fire needs materials that are called kindling material.

Dust has a very low temperature of kindling and can often burn in a manner that is often likened to petrol or gasoline.

Consider the amount dust that can build up on any farm. This is a major problem.

It’s impossible not to have dust all around the business, regardless of how well it’s kept or how strictly the team protocols may be followed. But it is also important to identify areas at risk.

The important thing to do is to find out where dust may build up and cause a fire.

Anecdotal evidence shows that dust explosions can occur in grain storage facilities and feed mills. It appears that the explosion occurs when an electrical spark ignites the powder and starts a fire, with potentially terrible consequences.

The sparks that fly from the welding equipment can also ignite it. Sparks can occur as a side effect when welding is done.

It is important for you to maintain a clean environment around welding equipment and any areas where welding takes place. This principle can be applied to both welding curtains and welding helmets. It reduces the danger of fire by making sure that these tools are safe to be used on a daily basis.

You can use housekeeping to address safety concerns or farm areas.

A spillage of any material could pose a risk to your health.

There is also the possibility of a machine or device leaking liquid.

This is especially important for farms and agricultural machinery.

It is essential to ensure that all liquids spilled on the floor are removed immediately. Oil and water are usually cleaned up quickly.

It is important that you cover any leakages with grit, sand or some other compound to keep people from falling on it.

After identifying the village, signage should be created to warn the public about the possible risk and hazard of a spillage.

Once spillage has been cleared, it is important to keep such signage up until the area is completely dry and clean.

It is also important that you realize when walking through an area of farmland or agricultural operations, that people are often carrying various types of machinery, parts of machinery, or sensitive items such Power Tools.

These items are usually bulky and difficult for people to handle. It could even lead to catastrophic injuries if the person carries too many. This is why you need to be careful about any liquid spillage.

This raises an important question: who is responsible for clearing up these potential hazards? It’s the core of many health and safety laws.

Most laws governing health and safety recognize the existence of a partnership between an employee and employer regarding all types safety and medical issues. This partnership should both be acknowledged in the legislation applicable to that particular industry as well as the nature of business.

The details of each business partnership are different, so it’s important to know the differences. The employer has a general duty of care. This includes both employees and the public.

It is likely that one or more people in a given workplace may be designated specific roles. They will be expected and expected to document these tasks on a regular schedule throughout the day. This is to indicate that these areas of work were supervised.

Individual employees could also be considered to have responsibility if they spot a leakage or other danger. A potential argument could be made that an employee may be held responsible if they identify a threat and do not take action to prevent it from happening.

Although this is only a general guideline, it is a moral obligation for those working in the farming industry. They must ensure safety in their work environments for their own benefit as well as that of their families.

If you take a quick look at any farm, or other agricultural business, you will quickly see the large variety of materials and instruments that are used in the daily operations of the farm.

The need for a proper storage system for all things that are either unorganized or not properly placed in a designated space may not be apparent immediately.

Storage has two important functions. Storage creates two things.

This is the return to the principle of a clean mind. It creates systems and practices that let people know where they are supposed to keep things and can put them back in their proper places, even if that is not their responsibility.

Storage is also about the materials being stored. This is the second critical issue. This may sound obvious, however it is critical to make sure that storage of any length or duration material is properly stored and accessible to all other materials.

All types and materials are able to be taken from storage and either replaced or replaced by new materials or of similar nature. You need to ensure that your materials are well-organized so that you don’t run the risk of someone being injured by a long, heavy object.

The object must be at least 10 times heavier than the ground. The principle consideration should be that a heavier, more bulky item should not fall on another person when it is being removed from the storage area.

The storage of all types fuels is also very important. Given the number of farm machinery such as generators, UTVs and tractors that make up an agricultural farm, it is not surprising that there will be significant amounts of fuel. It could also be dangerous for the farm to store fuel properly.

Although the specific nature of an operation will dictatehow fuel is stored and what it is used for, there are a few basic tips to improve safety. There will likely to be professional storage containers designed for fuels that are specific to farm use. These containers should be used only.

They will likely to be labeled, and they may also be colour-specific. This will allow for better safety management and a common understanding of the fuels.

It is also obvious that these fuels need to be kept far away from other materials that could possibly be considered flammable. Dust around them needs to be kept at a minimum, and that the entire area must be kept as clean and tidy as possible.

Any spillages must be cleaned up immediately.

It is also important for individuals who work with fuel or spillage to ensure they do everything they can to clean up afterward. This includes using cleaning agents on their hands, and changing their work clothes as often as possible when they are away from their workplace.