Multi-level marketing - a definition
If you have ever wondered what is multi-level marketing, you are not alone. It is called by a number of names (some of which are inaccurate), and it has developed a somewhat questionable reputation over the years. The truth is MLM is a legitimate marketing technique that is utilized by companies to generate sales. This approach is also known as network marketing and is a means of retailing in which products are sold to customers by salespeople, known by various terms, usually as independent distributors. The independent distributors for the products generally recruit and train other independent distributors. Therefore, the distributors get a percentage of the profits generated from each sale made by the people they recruit, along with the overall profit they make on their own personal sales. The reason network marketing has gained notoriety is because it is often confused with illegal pyramiding, in which people make their own money at a single level, without sponsoring any recruits at a lower level. Often in these illegal pyramid schemes, nothing of value changes hands--no product is bought or sold.
Understanding the process
Have you ever wondered what this multi-level marketing process is? We will break it down for you:
Prospecting is the process by which you get people to talk about your product, brand, advertise it and make it known. If you don't have individuals to talk about your business, products and services, then clearly no one is going to hear about them,and then you will be out of business. Prospecting begins with finding someone to listen to your proposal and share your message with.
Contacting This is the next important step in the MLM process - you might have an extensive list of contacts or leads, as they are called, but they are of no value to you if you do not reach out to them. Therefore, it is important to get in touch with the people that you want to add to your business or brand family. One way to never forget any of the steps is to keep a check list in mind under the what is multi-level marketing topic, and once you get the hang of all the steps, you will never forget them.
Presenting and success Once you have gotten in touch with prospective clients, the next step step is making a formal presentation for them, following up with them and finally accepting their decision, whatever it may be. The next time someone asks you what multi-level marketing is and the procedure, you should be able to tell them exactly in detail and perhaps even give them a few helpful tips, like the ones we have given you.
