Multi-level marketing (MLM), (also called network marketing or pyramid selling) is a company that rewards the marketing force not only for sales they personally generate, but also for the sales of other people they convince to join the company. This creates multiple levels of compensation in the form of a pyramid, hence the terms multi-level marketing and pyramid selling.
Multi-level marketing (MLM), (also called network marketing or pyramid selling) is a company that rewards the marketing force not only for sales they personally generate, but also for the sales of other people they convince to join the company. This creates multiple levels of compensation in the form of a pyramid, hence the terms ‘multi-level marketing’ and ‘pyramid selling’.
Multi-level marketing can be used to create a residual income stream because you can sell a product or products and train others to do the same. Then if you stop selling the product, the folks that you trained can continue on which means you are still receiving income even though you are no longer doing any work.
The way to build residual income using multilevel marketing is to recruit people to fill in your group below you. Once you get people to sign up and buy into your organization, you will need to train them and motivate them to build their groups and sell the products or services you are selling. While you are trying to build your group, you will still need to be selling the products or services to have income now as well as building your group to make the money from the residual income stream from your multilevel marketing organization.
One of the best things about a multilevel marketing organization is they have excellent sales training. This helps with your confidence in going through the sales process with potential clients and recruits. As you have been trained, you need to meet people and tell everyone what you sell and how you can help them sell also. When you have a few people who are ready to sign up and be your underlings, they will need to be trained and motivated.
If you want to develop your residual income stream from a multilevel marketing organization, you will need to learn to be a great motivator. Motivating people is almost like an art form for many people. You need to find out what certain people’s desires and needs are and play to them. In order to find the hot button for your recruit, you need to treat them as a sales conquest and ask them questions about what they want, what they like, etc. When you sell something to someone, you find what makes it important to them; motivating is basically the same thing.
Your downstream levels are starting to fill in and you are seeing them sell some products or services as well as signing people up to be under them in their downstream, which is also your downstream. As they make sales or recruits, you get a little commission without doing the actual sales yourself. This is what residual income is all about. The larger and more productive your downstream is, the more residual income you receive.
So it’s easy to see that the residual income opportunities are a huge plus for multilevel marketing programs. Some of the negatives are that sales aren’t for everyone and if you aren’t careful with your approach, it’s possible to alienate friends and family when telling them about what you are selling or the program.
Even if you aren’t interested in a career in sales, you can learn a lot from marketing training. Every job requires that you persuade someone to take action and that is the basic skill of marketing. I’ve heard one person say that anyone can increase their success in any career by having spent a year in a multilevel marketing program.
If you are undecided about multilevel marketing, you can go to YouTube and search on videos about multilevel marketing training. It’s a good way to explore this residual income opportunity before deciding whether to dive in.