How the MLM Model Works

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What is MLM (Multi-Level Marketing) and how can someone make money with it? That is the question that millions of people are asking, so we intend to explain exactly what MLM is, what it isn't, and how to maximize profits in the business model.

In the video below, Professional Network Marketer, Ben Mueller, explains the concept of MLM and why it is such a lucrative business model for those with an entrepreneurial spirit;

  • Ability to use the high quality products offered by the company
  • All usual business expenses are taken care of by company
  • No cap on income
  • Ability to create “Leverage” (generating revenue from other people's efforts)
  • Very low start up costs
  • Have the consistent support from other Network Marketers guiding you to success
  • Can create a legacy income that is passed on from generation to generation

MLM (a.k.a. Network Marketing, Direct Sales, Multi-Level Marketing) is over 70 years old and has created more millionaires than any other industry! Why, because it allows the average person to plug into an already existing business with little or no investment, while, at the same time, creating an income strategy that has no cap on the amount of income one can make! Sounds too good to be true right? Well, it's not if one chooses the right MLM company to work with, has a drive in them that won't stop, and has a mentor(s) that will lead them through to success!

What is MLM: Company Viewpoint

Let's first look at why MLM is beneficial for companies. First of all, one of the main expenses that companies have to pay for is; advertising. There is a lot of wasted money spent on advertising because there is no real way to truly identify how much revenue was created by a particular ad. What ends up happening is that companies throw money at advertising with no knowledge as to how the advertising is actually performing, therefore wasting a ton of cash! In MLM, the expense is always a set percentage of the revenue, therefore, no wasted dollars.

Secondly, if a company is selling their products through a MLM sales channel platform, they do not have to take on the expense of housing all the salespeople. The Network Marketers become the sales force, whom are independent contractors. Health insurance, physical location, bonuses, etc, are all eliminated because the Network Marketers are using their own facilities.

Finally, MLM not only cuts down on advertising expense of the company, but it also provides the best form of advertising! Word of mouth, which is essentially what Network Marketers do, is the most powerful form of marketing because it is coming from person to person (heart to heart).

What is MLM: Individual Viewpoint

MLM provides, as mentioned before, a revenue platform for those people that do not want to work for someone else. They don't have a boss telling them how much they will earn, when they can go on vacation, etc. An individual is able to literally plug into a business with little to no investment and, with no ceiling on how much they can make.

Probably the most important facet of MLM is the concept of Leverage. Leverage is what Bill Gates and the rest of the wealthiest people, in the world, use to generate their wealth. Leverage is simply the ability to create revenue based on the efforts of other people. Whenever people in a person's business sells the product(s), the person that brought the Network Marketers or customers in, receives a percentage of the sales.

At the end of the day, in MLM, one is creating a distribution channel of products, without having to deal with the inventory and delivery of the product. The Network Marketer is simply introducing the business and products to others via word of mouth or internet marketing strategies (i.e. Social Media).

Choosing an MLM Company

If this type of business model intrigues you, the next step is to find a good MLM company to align with! In the article “How to Research MLM Companies“, Ben Mueller explains what business model attributes to look for.

Choosing the right company to work with is the most important decision you will make in the MLM Industry, so do not take it lightly. We spent a decade plus with one company and did very well, but time had come to finally move our business to another company. We spent over a month investigating all the MLM companies in the United States and landed on one!

If you are sick and tired of working for someone else and helping them generate wealth, then MLM may be a fit for you! Just make sure you put yourself in the best position possible and learn as much as you can about the Industry. Success in MLM does not happen overnight, but if you continue to put the effort in, and are aligned with an MLM company that is in momentum, you have the vehicle to create the wealth that you have always been looking for!

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