Multi-level marketing (MLM) also referred to as Network Marketing is a business distribution model that allows a parent multi-level marketing company to market their products directly to consumers by means of relationship referral and direct selling.

Independent unsalaried salespeople of multi-level marketing referred to as distributors (associates, independent business owners, franchise owners, sales consultants, consultants, independent agents, etc.), represent the parent company and are rewarded a commission relative to the volume of product sold through each of their independent businesses (organizations). Independent distributors develop their organization by either building an active customer base, who buy direct from the parent company and / or by recruiting a downline of independent distributors who also build a customer base, expanding the overall organization. Additionally, distributors can also earn a profit by retailing products which they purchased from the parent company at wholesale price.

Distributors earn a commission based on the sales efforts of their organization, which includes their independent sale efforts as well as the leveraged sales efforts of their downline. This arrangement is similar to franchise arrangements where royalties are paid from the sales of individual franchise operations to the franchisor as well as to an area or region manager. Commissions are paid to multi-level marketing distributors according to the company’s compensation plan. There can be multiple levels of people receiving royalties from one person's sales.

The following are several of many Network Marketing companies:

It is sometimes difficult to distinguish legal and reputable MLMs from illegal pyramid or Ponzi schemes. MLM businesses operate in the United States in all 50 states and in more than 100 other countries, and new businesses may use terms like "affiliate marketing" or "home-based business franchising". However, many pyramid schemes try to present themselves as legitimate MLM businesses.

In the most legitimate MLM companies, commissions are earned only on sales of the company's products or services. No money may be earned from recruiting alone ("sign-up fees"), though money earned from the sales of members recruited is one attraction of MLM arrangements. If participants are paid primarily from money received from new recruits, or if they are required to buy more product than they are likely to sell, then the company is a pyramid or Ponzi scheme, which is illegal in most countries.

New salespeople may be required to pay for their own training and marketing materials, or to buy a significant amount of inventory. A commonly adopted test of legality is that MLMs follow the so-called 70% rule which prevents members "inventory loading" in order to qualify for additional bonuses. The 70% rule requires participants to sell 70% of previously purchased inventory before procuring new orders. There are however variations in interpretations of this rule. Some attorneys insist that 70% of purchased inventory should be sold to people who are not participants in the business, while many MLM companies allow for self-consumption to be a significant part of the sales of a participant. The Federal Trade Commission offers advice for potential MLM members to help them identify those which are likely to be pyramid schemes.

 

Why You Need a Network Marketing Coach
By Dave Shoemaker

One of the greatest assets is to have a Network Marketing Coach. The thing that really sucks is that there are a lot of affiliate programs designed to line you up with a good network marketing coach, but the team leaders don't do their job and help you. Most of them don't want to put forth the effort to help you become successful.


A network marketing coach needs to be there for you and you need to use their advice. It is only necessary if you can afford one or you get one from your program that is actually good for free. You can do most of your network marketing without any help from a coach. The best part is that you can even find most of your strategies for free on the internet by searching article directories and discussion boards.


There are plenty great e books, articles, and websites all about network marketing. There is plenty of great ways to learn how to network market without hiring an expensive coach. Plus most of the people that write e books about network marketing are pretty much coaching you when you read their e book.


When you join an affiliate program with strong support and coaching you will get many good network marketing coaches in one program. You won't have to waste your time with a poor team leader because the owners and the successful individuals in the program will be there to guide and help you from start to profit. This is the best way to find a network marketing coach and not have to spend thousands for one.

 

5 Facts About "Magnetically" Attracting Prospects to You
By Sylvan Noel

This is the new age of network marketing. The prospecting techniques your upline taught you are outdated and never work. Never make calls to friends or family, burn those genealogy lists, dump those flyers in the garbage, and harness the power of the internet to get people contacting you. Here you will learn the Attraction marketing techniques that get prospects groveling at the feet of "gurus" just to join their downline.

Lets face it, buying leads and calling them is DEADLY! It kills your business, your image, and your cashflow. These techniques will help you develop hot leads that expect your call, or may even call you first. Welcome to the era of "Magnetic Sponsoring" as Mike dillard calls it. These techniques popularized by Mike and others such as Ann Sieg and Mike Klinger, show you how to attract people to you.

Fact number 1, attraction is a feeling, not a choice. As you grow in experience and success, prospects are naturally attracted to you in order to learn because just the effect of being related to you. This is the same effect a rockstar has on it's posse or fans, also why a JV partnership with a big name guru can rake in thousands. Ever see two names in the header of a website, that is usually a JV, all the big names use them for profit, as well as list building.

Second fact, you need to brand yourself. Open a new tab and in it go to Google search. Type your full name, do aby results come up. Usually there are, for more famous people with the same name. If you don't know everything its okay, but you need to brand yourself as an expert in some aspect of you field. Truth is, even if you know very little, you can be an expert in a field compared to a complete newbie. What I suggest you do is purchase a domain name of your name, maybe even attach a blog to it. This way when people search your name in the SE's, they can find out more about your accomplishments.

Every real internet marketer has a mailing list, this is fact number 3. Some people like Mike Dillard have ones of over 150,000 people, others like Rachel Long have over 850,000 people, smaller marketers may just have a list of 1000, but at least its a start. It isn't just a nice optin page and the size of your list that matters, the biggest hurdle is developing a relationship with your list. As your subscribers see you as more and more of an expert, they will be more inclined to join or buy whatever you recommend.

Fact number 4, quality over quantity, who wants to read your 52 week newsletter and hear the same old news every other week. You can make perfectly solid campaigns at only 7 weeks and pack it with only the useful stuff. Time is precious, don't waste people's time with "fluff" newsletters. Great examples of newsletters are Mike Dillard, Stephen Pierce, and Costa Dedes, just to name a few.

5th Fact, people love free stuff. I include special free gifts for my list every now and then. Even after you initial series, remember to keep constant "significant" contact, people usually remember where they get important information from. Check out the free program "Open Office Writer" which is free and can be used to make your own pdf documents. Write a few on topics you know well and give them away to your list. Also when you market affiliate products to your list, offer them free bonuses for ordering from you, Ian Del Carmen does this and it works like a charm.

I can guarantee that these techniques will increase downline and mailing list retention, while also brining in new streams of profit. Why can I guarantee this, well I am a living product of Magnetic Sponsoring and Attraction Marketing techniques. Let the results speak for themselves, try these easy techniques for yourself.