A Clarification Regarding MLM
by fts-ar on Aug.18, 2011, under Money making
Multilevel marketing is a contemporary day form of business that has been in practice dating back to the 1980s . It opens up to the working class people the chance to own their own business and operate out of their homes. My own business Infinity Downline is considered by many people to be Multilevel marketing but in many ways is quite dissimilar to the most other mlm companies out there.
Companies that have determined to use multi-level marketing to distribute their products are basically a lot different than companies that do not utilize MLM. What are those differences you might be thinking? MLM structured companies pass a long a percentage of the profit from the selling of their merchandise to the people who are the people who actually use their product. Non Multilevel marketing programs wouldn’t be caught dead do so.
All MLM opportunities have what is recognized as a comp plan the specifies exactly how they will pay commission to the representatives who utilize their products or services. Built into all comp plans is a manner for distributors to get compensated not only what they obtain by purchase, but to also earn commissions on the products that other people buy. Why does this happen?
To give you a simple explanation, if I buy the companies service or product then I get paid like I have made a sale. Then if I tell you about it and you buy the companies goods or services we both then get paid on the sale. What I will be paid is because of the fact that the sale would not have been made if I hadn’t recommended the product to you. There is still more to it.
If your friend then decides to spread the word and informs one of their own friends about the merchandise, lets give that friend the name Joe and Joe goes out and buys the product also then you earn and your friend each will be paid a commission because you both have a share in the reason Joe decided to buy the product. You see your actions brought in your friend and then your friends actions brought in Joe.
Many people refer to all mlm business companies as pyramid schemes. But actually these days their are tough laws and regulations that regulate all multilevel marketing practices. The term pyramid scheme was actually brought about because of the unlawful practices of certain companies who were MLM marketing there mlm ventures with no discernable product or service and only garnering revenue and paying out commissions that were only generated from recruitment fees and where no actual product sale had taken place.
The main reason the label Pyramid Scheme came about, is because graphically MLM comp plans depicted on paper look like a pyramid. As you start to build a downline, the levels below you are wider because there are more people in them. For example if you bring in 2 people, who bring in 2 people, who bring in 2 people, you are at level 3 and there are 4 people there, hence wider.. Like a pyramid that starts with a single block, each level down from it has more blocks and is subsequently wider than the preceding level.
When you bring in new members who also bring in new members who duplicate what you have taught them with the people they have recruited, you will earn from their efforts as well. J. Paul Getty a very prominent entrepreneur from decades ago, stated unequivocally that he would rather earn money from a single 1 percent of 100 people, than from a hundred percent of his own efforts, no matter how hard that was he worked on his own.
To be honest though Multilevel marketing businesses usually don’t put a ceiling on the quantity of people you can personally sponsor, however the levels deep you can go down is limited in most of them. Also if you didn’t know, take note that in most mlm compensation each level below you pays you a different amount of the commission that is available for disbursement. That basically means an mlm company can only disburse the available profit on a specific number of levels before it is gone.
Now take my own company Infinity Downline as I mentioned previously is that it’s considered Multi-level marketing company by the majority of people who do not know better but in reality it has a totally different compensation structure. Let me give you a few examples.
1- The owners do not take any part of the sales off of memberships. ( They are not going broke though, with the sale of additional products to the members they do quite well financially )
2- Commissions are not paid in fractions, but as a whole, absolutely 100% is paid out to every member no matter what level they receive it from
3- There is no limit to the amount of levels you can be paid on below you. It could be 10, 20, 50 or a thousand or more levels deep that it goes, or even more still.
4- This is why people call it Infinity Downline.
MLM definitely smoothes out the work at home business field and with a two-way unswayable committed downline organization, big organizations can be built and individual members and their entire teams as well can gain sizeable pay checks. Many individuals in Mlm have got paid very significant incomes.



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September 17th, 2011 on 1:48 am
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October 28th, 2011 on 9:03 am
Great read. I also think it could be a bit longer