You can see many friends have given you a presentation on a Multi-level marketing company. Some people will talk with you after a long time about this. You will always keep a distance from these kinds of people. He or she will tell you that you can become rich on selling some products. They will dress rich and gives motivation speech and finally ask you money to get into their business.
Many people may already experience this. Some may experience this in the future. You may have questions like Is Multi-level marketing real or fake, can we earn money from it. Is it Legal?IN this article we will see everything about Multi-level marketing.
What is Multi-level marketing (MLM)?
Multi-Level Marketing is a marketing strategy in which the members will get a commission on selling products, converting prospects, the prospects converted by your down line, etc. To become a distributor you need to pay some money. You will get some products based on the money you are paying. Usually, MLM companies will motivate distributes and get more sales.
Difference between Traditional Marketing and Multilevel Marketing
In traditional marketing, Manufacturing takes place first. After the product will be distributed to a wholesale distributes after that it will be given to dealers. After that, it will reach the end consumers. IN MLM the products will be given directly to the consumers by distributer. so that it is also called as direct selling. In traditional marketing, the profit will be taken by the wholesale distributes, dealers.
Traditional companies spend money on advertisement but in MLM companies market their products by their downlines.
Is Multi-Level Marketing a pyramid scheme
Not every MLM companies are real. Many pyramid scheme companies are designed like MLM companies. Their only motive is to take the money of the people who are joining and escape.
The difference between Multi-level Marketing and Pyramid scheme is that MLM companies are MLM company will have a product or service. Multilevel Marketing companies earn money on converting prospects and give products and make them as distributors of their products. wherein pyramid they will convert a large number of people without giving products
Advantage of Multi-level marketing
- The main advantage of MLM is the investment is very low while compared to other businesses.
- Yow will get financial freedom easily
- You will get more financial knowledge which schools and colleges won’t teach you.
- Its a new income stream other than your job
- After some efforts, your job is to guide your down line, give a presentation, follow-ups to your prospects and you can earn more and more money.
Disadvantage of Multi-level marketing
- The products in MLM will be little bit costly.
- You will get 80 % no from your friends. Not all people will join you and do this business.
- Many people will discourage you like this won’t work you should have a clear mindset to face that.
- You should need to lose some of your friends.You won’t get support from them. Some of your friends will not even pick your calls.
- People will convince you like this is the fastest way to get rich. But it’s not like that. It takes 2-3 years to get rich in any field. Like other fields in MLM also you will take 2-3 years to get rich.
- There are many fake companies cheating people in the name of MLM. You should be aware of it. If you are in a fake company and making your friends join that company and if they cheated you and your down line. Everyone will blame you not the company.
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