On the Internet you regularly against advertisements from companies you can join. As a seller Often these products as dietary supplements, health products, personal care products and makeup. A decades old MLM company Tupperware and other well-known examples are Avon, Herbalife and euphony. How Does Multi Level Marketing and where should you look?
the system
Multi Level Marketing is also called "network marketing", "relationship marketing" or abbreviated MLM called. It is a business model in which products or services are sold through a layered system of representatives, distributors or consultants. The turnover of an individual consultant can not only increase by selling more products but also by connecting more. Fellow consultants are These resellers have others "among themselves", which again creates a layered network. If MLM consultant you are an independent contractor and not an employee of the "parent" as the manufacturer or supplier of the products that you sell is mentioned. Employment law seen you work on a freelance basis and you are not employed by the company. This creates an inexpensive but large distribution network with a deeper market penetration and optimal use of word-of-mouth advertising.
Compensation takes place by means of commission or bonuses. Because there is a difference in the purchasing and the selling price, both for clients and consultants who work through you, there is a margin that can stabbing in your pocket. Occasionally you will be rewarded immediately for recruiting new consultants, but usually increases your sales consultant recruited by you.
In most MLM companies you have to pay the fee, Be it buying a starter, a number of products that you can use and sell. Often you promotional materials such as leaflets, monsters and demonstration equipment to own. Courses are provided by the parent company are usually free, but when consultants themselves organize courses and motivational meetings, they often pay a contribution towards the expenses as room hire. By consultants who have been kicked away, sometimes textbooks or instructional CDs sold to new colleagues, called tools business.
the pitfalls
The system of Multi Level Marketing is sometimes compared to the forbidden pyramid schemes , but that's not quite right . Although the structure is similar, in the case of a pyramid game there are no products are sold , but inlaid money to gamble . In Multi Level Marketing selling products is central , which are purchased at a fair price with the aim to sell them at a profit. Nevertheless, the distinction is not always clear . In the case of ACN Telecommunications , in countries such as Belgium , Finland and Australia have imposed restrictions after it was shown that this MLM company still showed some pyramid - like traits . Also on pure , non pyramid -like Multi - Level Marketing companies is to provide some criticism though you will have to judge this for the company you want to work . Always accurate To start counselors are generally rather dubious recruited . You'll also often annoying ads on job boards, bulletin boards and discussion forums . The product what matters is not always mentioned in these ads , and the impression that it is a regular , permanent job . The freelance status , with obligations to the tax authorities and Enrolment at the Chamber of Commerce , is often silent until the consultant has registered .
There are also, not so much by the parent company but new consultants who want to commit to regularly promised mountains of gold. The impression that you can be. Quickly rich with For this, you obviously do not only sell, but especially ensure that work as many others before you.
In practice, most consultants are earning some extra money and have their friends, family and acquaintances of the products, if the latter are already in need. To the extent that there is big money is earned by an individual that applies to those who have a lot of consultants "among themselves", as they also catch the commission for the products that the infantry has been sold. You can however, ask whether it is ethical in this way to make money. The consultants in the lower echelons often come soon discover that their earnings are negligible, although it may have generated for those in the levels above them income. Because they do all the sales work in principle, but there is hardly earn anything, the majority shall, in the course of time with it on. For that reason, so there must always be new consultants are recruited, which explains the misleading ads again.
If it be a consultant?
If you do not assume that you will treasure kingdom of heaven , whether or not at the expense of others , you do not simply with a turn to run . Around the system Looking particularly good first or parent company purely on the ridge , or that all lawsuits are due to pyramid structures . In legitimate MLM companies information transparency and the inschijvings and launch costs are real , that is, in proportion to what you can earn later. If you are behind a certain group of products is , and you have a large circle of friends with the same interest , for instance makeup or food supplements and other health products , then it might be quite a fun pastime and extra income in addition to your regular job . And who knows , it goes in the long run just as well that you can give it you. Permanent job But you'll have to look at the long term . Do not have a job, but a benefit , look good or possible income and your status as an independent contractor , it is not at risk. If you are going to work as a consultant , also make sure that you offer the products to your friends , and not force , otherwise you run the risk that you might lose your friends through your sales pitch . Basically , use your common sense and be realistic .