Mlm Company

May 17, 2009

Little Gray Cells Network Marketing Company Index

Network Marketing is really about information management. Knowing your company strengths and explaining them to your prospects in a simple and concise manner is very important. Distributors learn very quickly that he or she who has the best information usually wins the prospect.

Little Gray Cells’ Network Marketing Company Index is all about tracking the major companies in the news media. This index is an up to date index of news stories as they are reported around the world in the print and online media.

Little Gray Cells does not promote one program over another but it does provide up to the hour accurate information for the multi-level-marketing industry. Its listing are a real eye opener especially the large global countries they are NOT written up in the news each week. You expect Amway, Tahitian Noni International or Discovery Toys to be in the news almost every day, but what about Gano Excel, or Isagenix?

You might have questions that you always wondered about but where to scared to ask anybody in your mlm company. Little Gray Cells will show the press coverage that the company has received and it does not pick sides.

Getting started in Network Marketing is very easy. Becoming success with a downline organization under you is usually a bit more difficult. Sure some people just seem to fall into success, but on the average the successful mlm-distributors work pretty hard at explaining their opportunity and products. Having the best up to date information about what is going on in the industry can help you make better decisions in your own business. After all if some idea you read about being successful for one company maybe you can adapt and use it yourself to expand your business.

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Filed under Beyond Random Ramblings by Arjuna

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March 20, 2009

Isn’t MLM One of Those Pyramid Schemes?

This is a question that we often get asked.  And the answer of course is “Definitely Not!”  Though MLM and pyramid schemes may seem to share some similarities, there’s a BIG difference which makes MLM legal and pyramiding ILLEGAL.

In pyramid schemes, income is generated solely on the process of recruiting others into the pyramid. Sometimes a product or service of questionable value is involved, but you are most often buying into the right to recruit others and collect money.

This is illegal!  Also, in pyramid schemes, those who get in first and are at the top win, while everyone else loses.

In a legitimate MLM company, representatives are paid only on the movement of products or selling of services, not merely recruiting.

Sometimes, there’s also compensation based on the training and managing of your marketing team.

Also, in an MLM company, no matter where you are positioned or when you joined, you can advance to the very highest income levels, and pass those who sponsor you.

Multi Level Marketing is nothing more that a business model that uses independent distributors with a multi level commission payout plan to move products from production to the consumer.

But you ask, “Isn’t the shape of an MLM organization similar to a pyramid?”  And the answer to that question is yes, but that is true of all hierarchical organizations.  For example, the shape of all normal businesses is in the shape of a pyramid.  There is something like a President or CEO, several Vice Presidents, more Division Directors, Group Directors, and finally the workers that make up the bulk of the workforce.  Each level down has more people at that level.

The same holds true for governmental departments, and the military.  At the top of a governmental department, there is the Secretary, then Deputy Secretaries, Assistant Secretaries, heads of lesser groupings and then the mass of workers.

All these organizations are shaped like a pyramid, so it is not the shape of the organization that makes a difference.  It has to do with the actual selling or not selling of products of value.  If real products are being sold and consumed, and the movement of these products from production to the end consumer is the primary purpose of the business, then generally the company is a legal entity.

If the primary purpose of the company is to simply recruit more and more members and there is no real product of value being sold, then you have a illegal operation.  Chain letters are an example of this kind of activity. 

What makes a MLM company different from a traditional retail company is the manner in which the sales force is paid. In traditional retail and direct sales companies, the salesperson is a company employee and earns a commission on only the products he or she sells directly.  In MLM companies the salesperson is not an employee of the company, but rather an independent distributor.

The magic of MLM is that independent distributors earn commissions not only for their own efforts, but also on the efforts of other distributors that they recruit into the business.  Earning 1% of a hundred peoples efforts is always better than earning 100% on your own efforts, as John Paul Getty noted.

The term “multi level” comes from the process where by one distributor recruits other people to become distributors and the new distributors are placed under them in what is known as a downline.  Each distributor is paid a retail commission on the products they sell themselves, and a wholesale commission on the products their downline sells (down to some designated level).

The larger downline a distributor can recruit, the larger will be his or her commissions as they will earn a wholesale override commission on all the products moved by their downline organization down to the designated level.  These commissions can add up quickly for distributors with large downlines.

Nevertheless, a controversial new ebook has recently been published that reveals why prospecting and recruiting is actually destroying many MLM businesses… why a business opportunity is literally the last thing you want to be selling… and… how to make money REGARDLESS of whether you sponsor anyone in a MLM business or not!  Click here to learn more => The Renegade Network Marketer

Filed under Beyond Random Ramblings by Arjuna

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