MLM stands for Multi Level Marketing. Marketing means to "move" a product or service from the manufacturer or provider to the consumer. Multi Level refers to the system of compensation provided to the persons who are causing the product to move or the service that is provided. "Multi" means more than one, and "Level" means generation.
Today there are thousands of Network Marketing companies operating throughout the United States, Canada, Mexico, South America, the United Kingdom, Europe, Australia, New Zealand, Israel, Japan and the Pacific Basin. Little Malaysia alone has more than 800 active Network Marketing companies. Network Marketing is reported to be a $100 billion dollar industry, internationally, made up of FORTUNE 500 and New York Stock Exchange (NYSE) companies.
A Brief History of MLM
Today there are thousands of Network Marketing companies operating throughout the United States, Canada, Mexico, South America, the United Kingdom, Europe, Australia, New Zealand, Israel, Japan and the Pacific Basin. Little Malaysia alone has more than 800 active Network Marketing companies. Network Marketing is reported to be a $100 billion dollar industry, internationally, made up of FORTUNE 500 and New York Stock Exchange (NYSE) companies.
A Brief History of MLM
Nobody knows exactly when MLM began, because it really evolved over a number of years, prior to World War II. Most observers agree that Nutrilite – now an Amway subsidiary – was the first true MLM company. In addition to being the founders of network marketing, they were the founders of the vitamin and food supplements industry, way back in the 1920s. So the historical connection between MLM and nutritional products dates back over most of the twentieth century – a fact unknown to most people (especially those who think that, somehow, MLM companies are johnny-come-latelies to nutrition. Most of the major product breakthroughs in that industry have been pioneered by MLM companies, in fact.)
How Does It Work?
In MLM marketing, you share information and develop personal and professional contacts. You are rewarded for sharing information that results in product sales. Network Marketing empowers you to build your own networking sales organization from your personal and professional contacts, which also empowers everyone to do the same, creating exponential growth of your network. You can earn income from the successful efforts of your network of business associates.
The Future of MLM
The Future of MLM
Over the following decades, MLM has evolved and developed further into the wide array of companies, product ranges, reward plans and cultures that exist today. This unique, powerful system of free enterprise continues to grow, attracting more and more people to it. As we prepare to enter the twenty-first century, MLM has never been so well-respected, so healthy, so attractive or so rewarding.
By the end of your visit, you’ll be in a better position to understand this unique system of business than many of the people already involved… and that’s what’s really needed if MLM is to achieve it’s almost limitless potential. Most network marketers have very limited understanding of its true power.
When you’ve learned the basics, spend some time exploring the different sections of www.mlmsoftwareindia.co.in like role of MLM Software, MLM legal terms, MLM related links, FAQs etc. It’s widely regarded as one of the most useful and reliable resources for people involved in MLM, whether they’re new or seasoned distributors, regardless of the MLM company they’re associated with, or whether they work their businesses full time or part time.
_______________________________________________________________________
The Future of MLM
Based on the three major trends currently influencing the shape and direction of network marketing worldwide, we expect to see the following developments in the coming decade.
This assumes there will be no other factors, such as global war or environmental catastrophe – an assumption that can never be safely relied upon where human beings are involved.
Two streams of MLM
We foresee network marketing dividing into two distinct streams. This will be temporary. Ultimately, only one stream will survive as network marketing. The other will be absorbed into another trend currently taking shape in the world of conventional retailing.
This scenario will arise from a combination of all three of the present trends, and will be the direct result of two different applications of technology…
Technology used to acquire and service customers
Technology used to recruit, train, communicate with, recognise and support productive, pro-active retail sales networks
Here’s why and how it will happen
This divergence is already beginning to occur. As Internet access and e-commerce pick up speed (and they’re already outstripping all predictions), two important things will happen:
Consumers will use the Internet for more and more of their shopping needs, for more of their recreational and social activities, and for more of their work related activity (telecommuting).
The existing home theatre, home gym, home office, home entertainment centre, etc will be augmented by home medical centres (connected directly to doctors and other health specialists), home learning centres (instead of schools) and other in-home services so that consumers will have fewer reasons to leave the comfort and amenities of their homes.
Supermarkets and other conventional stores will increasingly convert to automated warehouses that pick, pack and deliver, without the expensive real estate (including car parks) required now — or the staff.
Shopping as we now know it will change dramatically. Fewer businesses will be able to afford the luxury of expensive premises, car parks, etc, and competition from home-based or mobile in-home services (run by displaced former-employees) will add to their costs.
Consumers will become increasingly isolated. Many will crave human contact. With the ageing of the world population, this need will grow.
Those MLM companies moving in the direction of servicing customers on line will pursue this direction more vigorously than ever. To fund their growth, many (if not all) will be forced to seek listing on stock exchanges and go public. For their distributor networks, this may well be the beginning of the end. Before too much longer, most of these companies will cease to be MLM companies. Click here to find out why.
Those companies who maintain a retail focus in their distributor networks, and who opt for using the Internet primarily to train and support their distributor networks, will go from strength to strength. Many of the newer generation of network marketers — most of whom are displaced former middle and senior managers and professionals — will take network marketing back to its origins as a high-leverage retail sales and distribution system. There will be a return to the basics as MLM rediscovers its roots in new, more powerful ways.
They’ll be the people forging long-term, loyal customer relationships with people starved of face-to-face human contact. And, since income in MLM is unconnected to time, servicing those customers will be seen as an essential — and enjoyable — part of running a successful network marketing business once more.
Those customers will become the primary pool of golden prospects for new distributors, too.
A very different target market
Added to all this is the fact that the Baby Boomers will be the prime market.
The Baby Boomers are the best educated, most accomplished, most outspoken, most politically active and most self-centred, comsumption-oriented, demanding generation in recorded history — and the first ever to limit the size, scope and opportunities of the next generation.
Because of this, their loneliness in retirement will be pronouned. They will expect — demand — regular service and human contact.
Ultimately, this stream will be the only one to survive as network marketing. The other will be taken over by large, publicly-owned conglomerates focused on economies of scale and Return On Investment to stockholders. While income streams will still exist, they’ll be more like current on-line affiliate programs than traditional MLM, with limited scope and very limited returns.
_____________________________________________________________________________
MLM Legality Test
There are many characteristics, or "red flags" that distinguish an illegal pyramid from a legitimate multi-level business opportunity, (often shortened to MLM.) They have been written about often in many publications and by necessity often contain legal terms and industry jargon. Also, danger signs of a few years ago may have been camouflaged or fixed by the newest drafters of plans so one needs to be on guard for new and different twists. Is there a simple, easy to apply, test one can give to a business opportunity, that addresses the pyramid law risk without all the pyramid law legal terminology? There is. What follows addresses that need. It is the single-level test for the multi-level business opportunity.
It goes like this: Can one make some money SINGLE-LEVEL, that is, without sponsoring another business opportunity seeker? Note the specific use of the word "can", not the word "would". It is usually a given that the business opportunity prospect is urged to sponsor, and that the business opportunity presenter will say or imply that the "real money" is in building a group. But that is O.K., SO LONG AS - those who choose not to sponsor at all, CAN STILL MAKE MONEY. Note also the use of the word "MAKE". It's "MAKE MONEY" not "SPEND MONEY", meaning paying income taxes if the gross income exceeds expenses associated with producing the income. Buying for personal use at distributor prices rather than customer prices, while a savings, does not generate INCOME upon which one is required to pay taxes. Buying for personal use by itself is not an income opportunity. If the proposed business opportunity consists ONLY of buying for personal use and sponsoring more representatives, with no provision for sales to customers, it is flawed.
This simple test needs to be applied to two aspects of a business opportunity. The first aspect is the design. What do the company documents say about how one makes money? How does the compensation plan work? Not all the fine details of every commission, bonus or reward need be understood, but simply, can one make SOME money without sponsoring. Remember, one does not MAKE money when one buys any product or service for personal use. The application of this test should in no way imply that there is anything wrong or illegal about personal consumption. It is just that it alone cannot be the sole basis for a business opportunity.
The second aspect of the application of the test is the plan implementation. Some plans are designed correctly but are flawed in the implementation. Can one make money, even without sponsoring, as the plan is being taught and implemented by the prospective sponsor and the distributors closely associated with him or her? If there is no acknowledgment or support for the non-sponsoring participant in the business opportunity, something is wrong, maybe not in the design, but surely in the implementation. Reputable and legally designed and implemented multi-level business opportunities provide a money making opportunity SINGLE LEVEL to those who choose not to sponsor. Of course, if one sponsors others, then ADDITIONAL money making opportunities exist when those sponsored generate sales.
Apply this test to multi-level business opportunities. Look at the plan design, and look at the way the plan is being implemented by the prospective sponsor and associates. If the ONLY WAY to make money is by sponsoring, STAY AWAY, the plan is fatally flawed.
________________________________________________________________________________
By the end of your visit, you’ll be in a better position to understand this unique system of business than many of the people already involved… and that’s what’s really needed if MLM is to achieve it’s almost limitless potential. Most network marketers have very limited understanding of its true power.
When you’ve learned the basics, spend some time exploring the different sections of www.mlmsoftwareindia.co.in like role of MLM Software, MLM legal terms, MLM related links, FAQs etc. It’s widely regarded as one of the most useful and reliable resources for people involved in MLM, whether they’re new or seasoned distributors, regardless of the MLM company they’re associated with, or whether they work their businesses full time or part time.
_______________________________________________________________________
The Future of MLM
Based on the three major trends currently influencing the shape and direction of network marketing worldwide, we expect to see the following developments in the coming decade.
This assumes there will be no other factors, such as global war or environmental catastrophe – an assumption that can never be safely relied upon where human beings are involved.
Two streams of MLM
We foresee network marketing dividing into two distinct streams. This will be temporary. Ultimately, only one stream will survive as network marketing. The other will be absorbed into another trend currently taking shape in the world of conventional retailing.
This scenario will arise from a combination of all three of the present trends, and will be the direct result of two different applications of technology…
Technology used to acquire and service customers
Technology used to recruit, train, communicate with, recognise and support productive, pro-active retail sales networks
Here’s why and how it will happen
This divergence is already beginning to occur. As Internet access and e-commerce pick up speed (and they’re already outstripping all predictions), two important things will happen:
Consumers will use the Internet for more and more of their shopping needs, for more of their recreational and social activities, and for more of their work related activity (telecommuting).
The existing home theatre, home gym, home office, home entertainment centre, etc will be augmented by home medical centres (connected directly to doctors and other health specialists), home learning centres (instead of schools) and other in-home services so that consumers will have fewer reasons to leave the comfort and amenities of their homes.
Supermarkets and other conventional stores will increasingly convert to automated warehouses that pick, pack and deliver, without the expensive real estate (including car parks) required now — or the staff.
Shopping as we now know it will change dramatically. Fewer businesses will be able to afford the luxury of expensive premises, car parks, etc, and competition from home-based or mobile in-home services (run by displaced former-employees) will add to their costs.
Consumers will become increasingly isolated. Many will crave human contact. With the ageing of the world population, this need will grow.
Those MLM companies moving in the direction of servicing customers on line will pursue this direction more vigorously than ever. To fund their growth, many (if not all) will be forced to seek listing on stock exchanges and go public. For their distributor networks, this may well be the beginning of the end. Before too much longer, most of these companies will cease to be MLM companies. Click here to find out why.
Those companies who maintain a retail focus in their distributor networks, and who opt for using the Internet primarily to train and support their distributor networks, will go from strength to strength. Many of the newer generation of network marketers — most of whom are displaced former middle and senior managers and professionals — will take network marketing back to its origins as a high-leverage retail sales and distribution system. There will be a return to the basics as MLM rediscovers its roots in new, more powerful ways.
They’ll be the people forging long-term, loyal customer relationships with people starved of face-to-face human contact. And, since income in MLM is unconnected to time, servicing those customers will be seen as an essential — and enjoyable — part of running a successful network marketing business once more.
Those customers will become the primary pool of golden prospects for new distributors, too.
A very different target market
Added to all this is the fact that the Baby Boomers will be the prime market.
The Baby Boomers are the best educated, most accomplished, most outspoken, most politically active and most self-centred, comsumption-oriented, demanding generation in recorded history — and the first ever to limit the size, scope and opportunities of the next generation.
Because of this, their loneliness in retirement will be pronouned. They will expect — demand — regular service and human contact.
Ultimately, this stream will be the only one to survive as network marketing. The other will be taken over by large, publicly-owned conglomerates focused on economies of scale and Return On Investment to stockholders. While income streams will still exist, they’ll be more like current on-line affiliate programs than traditional MLM, with limited scope and very limited returns.
_____________________________________________________________________________
MLM Legality Test
There are many characteristics, or "red flags" that distinguish an illegal pyramid from a legitimate multi-level business opportunity, (often shortened to MLM.) They have been written about often in many publications and by necessity often contain legal terms and industry jargon. Also, danger signs of a few years ago may have been camouflaged or fixed by the newest drafters of plans so one needs to be on guard for new and different twists. Is there a simple, easy to apply, test one can give to a business opportunity, that addresses the pyramid law risk without all the pyramid law legal terminology? There is. What follows addresses that need. It is the single-level test for the multi-level business opportunity.
It goes like this: Can one make some money SINGLE-LEVEL, that is, without sponsoring another business opportunity seeker? Note the specific use of the word "can", not the word "would". It is usually a given that the business opportunity prospect is urged to sponsor, and that the business opportunity presenter will say or imply that the "real money" is in building a group. But that is O.K., SO LONG AS - those who choose not to sponsor at all, CAN STILL MAKE MONEY. Note also the use of the word "MAKE". It's "MAKE MONEY" not "SPEND MONEY", meaning paying income taxes if the gross income exceeds expenses associated with producing the income. Buying for personal use at distributor prices rather than customer prices, while a savings, does not generate INCOME upon which one is required to pay taxes. Buying for personal use by itself is not an income opportunity. If the proposed business opportunity consists ONLY of buying for personal use and sponsoring more representatives, with no provision for sales to customers, it is flawed.
This simple test needs to be applied to two aspects of a business opportunity. The first aspect is the design. What do the company documents say about how one makes money? How does the compensation plan work? Not all the fine details of every commission, bonus or reward need be understood, but simply, can one make SOME money without sponsoring. Remember, one does not MAKE money when one buys any product or service for personal use. The application of this test should in no way imply that there is anything wrong or illegal about personal consumption. It is just that it alone cannot be the sole basis for a business opportunity.
The second aspect of the application of the test is the plan implementation. Some plans are designed correctly but are flawed in the implementation. Can one make money, even without sponsoring, as the plan is being taught and implemented by the prospective sponsor and the distributors closely associated with him or her? If there is no acknowledgment or support for the non-sponsoring participant in the business opportunity, something is wrong, maybe not in the design, but surely in the implementation. Reputable and legally designed and implemented multi-level business opportunities provide a money making opportunity SINGLE LEVEL to those who choose not to sponsor. Of course, if one sponsors others, then ADDITIONAL money making opportunities exist when those sponsored generate sales.
Apply this test to multi-level business opportunities. Look at the plan design, and look at the way the plan is being implemented by the prospective sponsor and associates. If the ONLY WAY to make money is by sponsoring, STAY AWAY, the plan is fatally flawed.
________________________________________________________________________________
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