05/14/04

Welcome!

You have reached the home of the MLM Business entrepreneur. Here we try to provide the products and services needed to launch yourself into internet profit. The articles and links will, we hope, be of valuable use to all who read and use them. So feel free to read on and don't forget to subscribe to our monthly ezine.

A note from the webmaster:

A long time ago now I was introduced to the world of MLM. Then it was a new concept and seemed totally alien in it's workings. I was told "Ignore products, it's people you want to concentrate on", how strange I used to think, how are you ever going to make any money if you don't sell heaps of product. Well now I know the guy was right, products obviously do come into it but being in a MLM venture is like being part of an ant colony. Strange analogy I here you say but look at it this way. Is it more profitable to sell 1 book to 100 people or 100 books to one person. Of course it is exactly the same but it's easier to sell just one book, any one could do it. That's where the MLM concept comes in to play. Lets go back to that ant colony again each ant helps the colony by collecting food. Each ant may only fetch two pieces a day, but because of the sheer volume of ants the stash at the end of the day for the colony is massive. No one single ant looses out and the colony prospers. MLM is no different, if you concentrate on bringing on board just 5 people and teach them to do the same within a very short space of time you could have 1000's of people in your down line. The hardest thing I found when I was starting out was the concept of buying products instead of selling them. Of course if you can manage to sell your products all good and well, but most ventures look to a volume of around $50 per month. I don't care what people say for most of us unless you were selling gold bars at $5 a go $50 worth of sales each month is a tall order. Well here's where you buy the shortfall yourself. I know that seems crazy but look. Let's say you manage to sell $0 one month, that leaves $50 shortfall, not great but all is not lost. You then purchase the $50 worth of products yourself. Here's the good part. All MLM ventures pay their distributors commission, so lets air on the side of caution. Let's say that 1st level commission is 15%, this means that the MLM company will pay you back $7.50 in commission on the $50 you have bought. Now you are only $42.50 out of pocket, only, I here you say, what's the point of running a business at a loss. Well that's where your down line come into play, remember the 5 people you introduced. Hopefully you will have trained them to mimic you, and if they had done the same, i.e. $0 sales, and purchased the product's themselves, then here's what will happen. As I said before MLM companies pay commissions, but they don't just pay commissions down to one level, no some pay down to 7 levels deep and a few even further. Now the percentages will vary from company to company but the principles remain the same. So for this example, as we are airing on the side of caution, lets say the second level commission is 2%. This means that your five down line spent $50 got back $7.50 in first level commissions, just as you did, everyone is happy. Because you introduced and trained them the company reward you by giving you 2% of each of their sales. Not a lot of cash I here you say well no but let's add it up. Each purchased $50 so you get 5% of that i.e. $2.50 x 5= $12.50, so now you are only $30 out of pocket. but don't forget the 5 people you introduced have been trained to mimic you, so they in turn will have introduced 5 people each. Again if the same thing happened to them i.e. no sales, each of the 25 of them would get their $7.50 commission, now though each of your initial 5 would get $12.50, from their second level commission. As we said commission levels can go as low as 7 levels so lets just go one level further just to give you the general idea. You will have 125 people in your 3rd level now, and even if the MLM company only pay 2% on level 3 you would make $125. So after just three levels of people buying their own products you have now turned a $50 outlay into a $95 profit. Now what do you say about that?

If you are worried about mountains of product littering your home, do what I do, give it away to a needy cause. The good ones are, an old neighbor, old peoples home or a children's home, the choice is yours.