MLM is a project or a marketing strategy for the purpose of advertising and sale of any particular product based project or may be simply a strategy to sell ideas. Nevertheless this type of business or marketing idea has remained a matter of controversy due to its nature of work.Basically MLM companiesderive their profit from a non-salaried people, who are more of a participants or ‘a person’ who add other people to this project to earn commission based income thus making a pyramid like structure. A person recruits a salesperson and the salesperson recruits other and thus the chain goes on. Sometimes the compensation for the work depends on the number of product sold out or the number of people the particular person had recruited so far. So MLM is always a tricky game when it comes to business setup and getting it flourished to high level, but there are many MLM that have achieved great success with little tricks a and obviously a lot of hard work.
Hints for planning out the best strategy
MLM works completely relay on word of mouth marketing and recruiting the best team is the main and the most significant step towards the business setup. Success rate in terms of money is on lesser side when considering the networking business on the initial front but however on a long run they had proven to be one of the reliable marketing job. The best part while considering MLM is that there is no eligibility criteria for one to join or be a participant, from students to home makers all can be a part of it as the strategy is “recruit more, earn more”. If a person or participant believes in the product or the idea, then the person can encourage anyone he/she know and eventually get paid for the members they will recruit. While considering the success rate on recruitment 50 percent of the member joined quit in the first six month itself. So precisely speaking only half or may be less stick to the project to see the end result. So before randomly selecting people just to fill or add more members scan properly the patience, time and hard work they are willing to inculcate in them and their motive to stick to the project. However “word to mouth” marketing strategy it may appear, but there should be a proper advertising channel for the best outcome.
For a person who is willing to be a participant, go through the product or the company thoroughly without getting lured by the hype. All MLM companies do not have same compensation plan, ensure before getting involved. After all quitting the company in between not only hamper your efforts but will also adversely affect chain of people who are directly or indirectly involved in recruiting you.