One question often asked about Multi Level Marketing is "Do I need to know and enroll to be successful?"

A reply from a number of upline sponsors typically is something similar to the following…

"No, you can build up a significant residual income and become very successful in Multi Level Marketing by Sponsoring just one person every month or so.

These people don't have to come from people you already know. Think about how many people you run into everyday in your normal day to day activities!

Try this: sit down with a pen and a sheet of paper and make a list of the names of EVERYONE you know, have known, have done business with, etc. You will be astounded by %how many% people you are able to list.

Surely not all these people will join your Multi Level Marketing business, however, you can still be very successful if only one in a hundred elects to join. Statistics show that if one out of every hundred people you contact about joining your business, does so, it will be sufficient to make your car payment, another one will make your house payment, and one more will retire you!

So, three out of every one hundred isn't all that bad! Also, keep in mind that the people on your list also know others, and will frequently refer you to others that may be interested in joining your program!"

Have you ever been turned down 97 times? That is a lot of rejection. And initially these rejections come from people you know, so the rejection is even harder. Most people will not last that long.

How many people do you know who can go out and face 100 people they know and get turned away by 97 of them and just continue to keep plugging along trying to recruit or sell products to an or hostile market?

If you are fortunate enough to enroll an established "heavy hitter" from another Multi Level Marketing company who brings along his existing downline with him, then the above answer can be technically true depending upon your company's compensation plan.

However, the odds of you recruiting a "heavy hitter" who goes out and creates a large downline below you when you only enroll "one person every month or two," is extremely unlikely.

So what should you do if you don't want to face massive rejection and you are not going to be fortunate enough to land a "heavy hitter" early in your Multi Level Marketing career?

If you don't desire to be a member of the NFL (No Friends Left) club, then I would suggest not pursuing your friends and family, everyone you know, or anyone within 30 feet as many upline sponsors instruct you to. No matter what they say, everyone is not your market. Instead your target market is people who are specifically interested in starting a home-based business, earning extra money, are already members of some Multi Level Marketing company or are interested joining a Multi Level Marketing program. Now the solution is to get them to come to you and then, using a soft sell approach instead of the traditional hard sell, recruit them into your business.

"OK, so just how do I go about accomplishing that?", you ask.

You can achieve this by offering your target market a free report or funded proposal relevant to your niche and building your mailing or emailing (preferable) list. Then using this list, you build a relationship with the members of your list by providing them useful information and becoming an authority figure in their eyes. This is known as relationship marketing.

If your market has been correctly identified, you will soon find that prospects will call you searching for guidance and asking how to enroll in your program.

To read more about funded proposals, free reports, and relationship marketing and how you can use them in your sponsoring efforts, click the links in the resource box below.

George Dodge believes relationship marketing to be superior to all other Multi Level Marketing recruiting methods. Download The 7 Great Lies of Network Marketing free report and then go on to discover the secrets of effective Multi Level Marketing Recruiting methods made available with the use of the Internet.

MLM, also known as Multi Level Marketing, can be a wonderful method for achieving your personal and financial dreams when combined with the power of the Internet.

My goal in this article is to briefly explain what this business model is and what it is not since it is used by hundreds of companies to move their goods and services from production to the end consumer.

With the information I will provide here, you will be able to make an informed, educated decision as to whether or not this business model is right for you.

Multi Level Marketing is nothing more that a business model that uses independent distributors with a multi level commission payout plan to move products from production to the consumer.

Some people believe that Multi Level Marketing companies are nothing more than scams or illegal pyramid schemes. However, for true MLM companies, nothing could be further from the truth. These people simply do not understand how Multi Level Marketing companies work.

First you need to know that Multi Level Marketing companies are 100% legal and many large multi-million dollar companies employ this business model to move their products from production to the consumer. The pyramid shape associated with MLM companies is the same shape as almost all non MLM companies. There are always more workers in the lower ranks than there are senior managers, Vice Presidents, and CEOs. If companies were not of this shape, they would collapse.

Many Multi Level Marketing companies have been around for decades. Some of the better known MLM companies are Shaklee, Tupperware, Mary Kay Cosmetics, Amway, A.L. Williams (Insurance), Princess House (a subsidiary of Colgate Palmolive), Melaleuca, MCI, U.S. Sprint, and NSA.

MLM is an explosive growth field and there are hundreds more MLM companies that, just like other companies, include some that are good and some that are not so good. Today, more and more Fortune 500 companies are even embracing Network Marketing for a portion of their marketing portfolio!

No matter what some MLM recruiters would like you to believe, Multi Level Marketing is not a get rich quick scheme and work is certainly involved if you want to build a long-term stable business. So, why are MLM companies and programs so popular? It is because the Multi Level Marketing business model presents an excellent opportunity for the "little guy" to start, on a part-time basis, a business that has a large residual income potential.

The magic of MLM is that independent distributors earn commissions not only for their own efforts, but also on the efforts of other distributors that they recruit into the business. Earning 1% of a hundred peoples efforts is always better than earning 100% on your own efforts, as John Paul Getty noted.

The term "multi level" comes from the process where by one distributor recruits other people to become distributors and the new distributors are placed under them in what is known as a downline. Each distributor is paid a retail commission on the products they sell themselves, and a wholesale commission on the products their downline sells (down to some designated level).

The larger downline a distributor can recruit, the larger will be his or her commissions as they will earn a wholesale override commission on all the products moved by their downline organization down to the designated level. These commissions can add up quickly for distributors with large downlines.

Thus if a distributor can teach his or her downline members to be successful, then then they will be rewarded by increased earnings themselves. To paraphrase what Zig Zigler once said, you can get anything you want if you help enough others get what they want. By helping others succeed, a distributor helps themselves.

In addition to selling products directly, recruiting, training, and retaining others becomes the key to earning a large stable residual income with Multi Level Marketing. It is not easy, but it is very rewarding.

Millions of people are discovering the advantages of being their own boss and working from home with the MLM business model. A basic computer, telephone, fax machine, a HUGE ambition, and the knowledge of how to proceed to grow your business are all it really takes!
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George Dodge, an Internet MLM Coach and Mentor, shows Network Marketers how to easily create a passive residual income online using the latest MLM Internet Marketing Methods. Click here to download the FREE ebook, The 7 Great Lies of Network Marketing

How To Exploit
the Internet for Maximum
Downline Growth!
Click Here

This is a question that we often get asked. And the answer of course is "Definitely Not!" Though MLM and pyramid schemes may seem to share some similarities, there's a BIG difference which makes MLM legal and pyramiding ILLEGAL.

In pyramid schemes, income is generated solely on the process of recruiting others into the pyramid. Sometimes a product or service of questionable value is involved, but you are most often buying into the right to recruit others and collect money.

This is illegal! Also, in pyramid schemes, those who get in first and are at the top win, while everyone else loses.

In a legitimate MLM company, representatives are paid only on the movement of products or selling of services, not merely recruiting.

Sometimes, there's also compensation based on the training and managing of your marketing team.

Also, in an MLM company, no matter where you are positioned or when you joined, you can advance to the very highest income levels, and pass those who sponsor you.

Multi Level Marketing is nothing more that a business model that uses independent distributors with a multi level commission payout plan to move products from production to the consumer.

But you ask, "Isn't the shape of an MLM organization similar to a pyramid?" And the answer to that question is yes, but that is true of all hierarchical organizations. For example, the shape of all normal businesses is in the shape of a pyramid. There is something like a President or CEO, several Vice Presidents, more Division Directors, Group Directors, and finally the workers that make up the bulk of the workforce. Each level down has more people at that level.

The same holds true for governmental departments, and the military. At the top of a governmental department, there is the Secretary, then Deputy Secretaries, Assistant Secretaries, heads of lesser groupings and then the mass of workers.

All these organizations are shaped like a pyramid, so it is not the shape of the organization that makes a difference. It has to do with the actual selling or not selling of products of value. If real products are being sold and consumed, and the movement of these products from production to the end consumer is the primary purpose of the business, then generally the company is a legal entity.

If the primary purpose of the company is to simply recruit more and more members and there is no real product of value being sold, then you have a illegal operation. Chain letters are an example of this kind of activity.

What makes a MLM company different from a traditional retail company is the manner in which the sales force is paid. In traditional retail and direct sales companies, the salesperson is a company employee and earns a commission on only the products he or she sells directly. In MLM companies the salesperson is not an employee of the company, but rather an independent distributor.

The magic of MLM is that independent distributors earn commissions not only for their own efforts, but also on the efforts of other distributors that they recruit into the business. Earning 1% of a hundred peoples efforts is always better than earning 100% on your own efforts, as John Paul Getty noted.

The term "multi level" comes from the process where by one distributor recruits other people to become distributors and the new distributors are placed under them in what is known as a downline. Each distributor is paid a retail commission on the products they sell themselves, and a wholesale commission on the products their downline sells (down to some designated level).

The larger downline a distributor can recruit, the larger will be his or her commissions as they will earn a wholesale override commission on all the products moved by their downline organization down to the designated level. These commissions can add up quickly for distributors with large downlines.
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George Dodge, an Internet MLM Coach and Mentor, shows Network Marketers how to easily create a passive residual income online using the latest MLM Internet Marketing Methods. Click here to download the FREE ebook, The 7 Great Lies of Network Marketing

How To Exploit
the Internet for Maximum
Downline Growth!
Click Here