Home Business Marketing MLM | Can You Really Make Extra Money From MLM?
A lot of people are checking out ways to earn some extra cash right now. One of the areas where things are fairly healthy is the direct sales / MLM ( Multi Level Marketing ) industry. It is a good time to take a closer look at it.
There are many companies where you can just to retail sales of a product you love and make hundreds, even thousands, of dollars a month of extra income. There are some very solid companies where you can build a distribution team and earn career level incomes that will continue to pay you for year after year.
If you are a high achiever then this is an area where high achieves can potentially earn extremely high incomes.
MLM (Multi Level Marketing) companies supply products to their end user clients through their own independent distributor network. They do not supply products through shops and other traditional outlets.
To become a distributor you need to find someone who is already a distributor of the company to sponsor you. They either ship stock to their distributors, who deals directly with the client, or they “drop ship” from their own warehouses.
This means that the distributors order products through their local distribution center that the company packs the order in the warehouse nearest to the client and then ship directly to that client. The larger companies have warehouses in many countries and some of the strongest companies allow their distributors to work globally and to earn income from many countries.
This structure means that the company is not paying margins for retail operators, for wholesale distributors, for import and export agents. Most products you buy from a shop for $100 have a manufacture cost ex-factory of maybe $20. This leaves 80% of the retail price within the distribution chain. MLM companies move that margin out of the traditional structure and pay it into their own distribution network of independent distributors.
The cost savings of working in this manner means that the MLM operations often have the ability to give generous margins to the people who are doing the most valuable work. In effect they duplicate the structure of traditional business, profit margins at retail, wholesale and leadership positions. They each have a market plan that lays out exactly how the retail dollar is distributed and how people are promoted within that system.
A good company will leave the largest part of the profit with the people who are doing the most work and then divide the balance of the profits they distribute in balance with the work done and the value to the distributor is bring to the company.
Often there will be up to 50% of the retail price given to the people doing the retail activity. When a company is doing that, there is a realistic opportunity to make a good, consistent, part time income from just doing the retail and having nothing to do with any other part of the market plan.
Distributors who learn the retail skills themselves and then recruit other people to work with them have the opportunity to earn additional income.
Most respectable companies do not give profit from recruiting distributors, they only pay money when retail products are sold and so the only time the leadership are making money is when the distributors working with them are making money.
This creates a healthy relationship where the leaders have a direct interest in the people working with them doing well. If they can help the distributors who work with them to be successful then the leaders will also make money.
In a clean market plan the person doing the retail activity will make the most money on any particular sale but if someone has built a sales team containing a hundred people they should be making some profit from a hundred different points. If they have a thousand distributors then they can be making profit from a thousand different points. This is why the best people in MLM build huge incomes.
What does this all mean to you? Can you make money from MLM? The most important thing is that you find a products you love and are happy to work with. Then do the research and find a good company, check how the market plan works, decide if you want to just make extra cash or if you want to build a distribution structure and ensure you find a sponsor who is happy to work with you to achieve what YOU want to do (not what they want you to do).
If you do this then you can do very well with an MLM company.
If you are just at the point of considering whether or not Direct Sales or Home Business Marketing MLM is something that you can do and make money at it, you need to do some research before you make any decisions.
There are some great Home Business Marketing MLM opportunities in the nutrition direct sales industry.
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