What is mlm and what's in it for you?

'What is mlm?' is one of the most regularly used phrases in the search engines, but just as regularly used are the phrases 'mlm scams' and 'mlm pyramid scheme'.

MLM is also known as network marketing and multi level marketing, they all refer to the same thing.

So why is there so much interest and distrust around the mlm industry?

Multi level marketing is a great, low cost way of starting an online home business but there are scams out there and a lot of mistrust over what's a legitimate opportunity and what's a 'get rich quick' scam.

This is because of the terrible publicity surrounding pyramid schemes in years gone by.

What is mlm and what is a pyramid scheme?

When I first asked 'what is mlm?' and he explained the scheme to me I just said, in my naivety 'It's just a pyramid scheme isn't it?'

There is a big difference - take a look at these definitions:

Pyramid schemes are set up with the sole intention of making the operators rich, whilst relieving everybody else involved of their hard earned cash.

Pyramid schemes are illegal.

These schemes recruit 'distributors' and then collect money from them without also selling products.

Network marketers take on two roles:

• They distribute the products of a company, buying them from the parent company and selling them to friends, family, colleagues and anybody else they come into contact with.

• They work as recruiters signing up other distributors to work on their behalf and then taking a percentage of the profit every time they go on to make a sale.

  Network marketing is legal when operated correctly.

  As network marketers sign up more people, they create what's known as a downline made up of all the people they've introduced, plus the people they have then gone on to introduce.

  Of course, if you've been recruited to network marketing, you too are part of someone's downline.

  Network marketers make more money from their downline than they do selling product themselves, but it is illegal to only recruit distributors and take money from them, products must be sold too, to differentiate from a pyramid scheme.

  What is mlm and when is it a scam?

  This is the big question of course!

  If you think that mlm might be for you, you really must do your research first.

  Beware the 'get rich quick' schemes and follow your gut instinct at all times ... if it looks too good to be true, it probably is.

  Very few people 'get rich quick' and I'll say it time and again on this website, you should always take a longer term view of setting up any business on the web.

  If you've found a network marketing company and it looks like a goer, check out the Direct Selling Association website and see if the company is listed as a member.

  If it isn't, you might want to consider very seriously whether you should proceed.

  There's much more to selecting a good mlm company to hook up with of course, but let this be your starting point before you invest any time, effort ... or money!

  What is mlm? Often a bit limited on the web ...

  If you're happy with the answer to the original question - what is mlm? - and you think it's something that you might like to explore for your legitimate home business, be aware of the limitations of mlm on the web.

• Legitimate mlm schemes are highly regulated, and companies and distributors are forbidden to make wild claims about products, particularly in the wellness industry.

  That means that care has to be taken with mlm websites.

• A combination of government regulations and branding concerns mean mlm parent companies don't really want you doing your own thing on the web in case you land them in trouble.

  That means you lose a valuable source of prospects and become confined to thankless phone bashing and offline techniques.

• Some mlm companies try to do the right thing and provide you with an 'off the shelf' web presence.

  The problem is that they don't understand the web.

  These sites are low in content and value, they don't appeal to the search engines and no casual surfer is likely to find them, other than via your offline promotion.

  So what's the solution?

  Well, network marketing might well be the correct route for your home based business, but never neglect the web element of the operation.

  The biggest reason for people dropping out of network marketing is that they hate prospecting ... with no prospects, there's no downline, with no downline, there's no business.

  You can solve all these problems via the web ...

  What is mlm? A web opportunity in waiting ...

  Even if you don't take the mlm route, you can learn a lot about marketing and effective networking from the industry, so don't dismiss it out of hand.

  What can mlm learn from the website creation business? Lots!

  If you opt for an mlm business, then consider building it hand-in-hand with an effective web strategy.

  The chances are your mlm company will give you access to some pretty generic 'landing pages' if they give you any web presence at all.

  You can legally get around all the restrictions surrounding the industry by creating a niche based, keyword rich website.

  Research your niche - which will be related to your mlm business - and generate a list with lots of high demand/low supply/high profit keywords.

  Don't even mention your mlm business ... just create a content-rich website which will attract web users because of its theme.

  So, for instance, you might work for an mlm company which produces a range of exercise related drinks.

  Your niche website might feature content on 'home exercise', or 'getting fit for the over-40s', or whatever your careful research indicates is a profitable theme.

  You never mention your mlm business on your website, but you do attract lots of potential customers who are interested in your field of operation.

  Add a contact form, encourage your website visitors to seek more help and information from you ... and then you can start the mlm process offline, with a nice, warm prospect who's already indicated that they're interested in what you do .. and he/she has come to you!

  How much better is that than endless phone bashing?

  What is mlm? Not a get-rich-quick scheme, but an investment ...

  The content-rich website is not a quick fix however, you've got to invest in your site, and you've got to build the interest and the traffic first.

  As part of the time you spend with your downline, you can encourage them to do the same, learn new web skills, make a real investment in the mlm business that they're building.

  With more investment and commitment, and less thankless phone bashing, you might find that instead of operating a high turnover mlm operation, you're growing real depth into your downline and therefore your longer term residual income.

  So what is mlm? It's a great opportunity when done correctly, using the web in the right way ... and you'll find out how to do it 'the right way' by looking around this website.

  

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