Multi Level Marketing

Discussion in 'Internet Marketing' started by upineter, Jun 15, 2008.

  1. upineter

    upineter
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    How your opinion about multi level marketing ? Is it good in your opinion? In my country MLM become bad reputation in the business, how in your country ?
     
  2. Fergal

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    There are some very large and successful companies who's business model is based on MLM. However, there are are also lots of MLM scams so you need to be careful before signing up with an MLM company.

    Are you considering getting involved with MLM?

    Do you have a particular product or service in mind?

    You can get some useful info on MLM here.
     
  3. Nazreen

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    What a coincidence? Me and my husband has just been to an MLM seminar last Saturday. The name of the company we went to is Pharmanex and Nu Skin. Pharmanex sells products which it says, are full of antioxidants and will also make our bodies absorb it better. It claims that the number of antioxidants in our bodies is directly proportional to how long we live. Nu Skin, on the other hand, sells beauty and skin products.

    I think their products are very good but the bad thing about it is that they're very expensive. Do you know why? The reason for this is that there are so many people profiting from it. For every product you sell, 3 levels of your upline (or referrers) will benefit 5% each from it. In the same way, you will also benefit 5% for up to 3 levels of your downline (or referrals).

    At the first instance that you enter an MLM, you will be at the bottom of the chain, and those in your upline will be profiting from you. I don't deny the fact that there are already a lot of people out there who have been successful by joining an MLM. If you have lots of friends and/or very good in sales, I think that you can do well in MLM. If not, I advise you against it. Also, if you're just a consumer and would just like to buy the products, it would be better if you buy similar products from a retailer instead of buying from an MLM.
     
  4. Fergal

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    Does this have similarities with what happens when you buy from a retail store, e.g. where distributors, wholesalers and middlemen get a share of the profits?
     
  5. Nazreen

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    If you bought from a retailer who bought his products from middlemen, this would be almost the same as buying it from an MLM. The retailer would have bought his products at a higher price and therefore selling it too at a higher price. But since most retailers would go directly to a wholesaler to get their products, then this would eliminate the middlemen therefore making their products cheaper.
     
  6. akhanna18

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    could you explain me the concept of multi level marketing . how this concept will benefit my portfolio management business?
     
  7. Fergal

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    akhanna have a look at the link in my post above, post no. 2.

    You can also get more info in this helpful MLM post by Nazreen.
     
  8. ritajones56

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    I love the multi level marketing business. Sure it has a pretty bad reputation in the U.S., but I think a lot of that is because of a select number of bad seeds who promote shady offline practices. Multi level marketing is an awesome way to make money and keep making it long after your work has slowed or stopped.
     
  9. -wataru-

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    there are a lot of multi level marketing and if you are the first to join then you have the highest chance of earning big because if the place is saturated with members its hard to earn its like pyramiding as well.
     
  10. InspiredWriting

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    In my opinion its not what you do but how you do it. MLM can be very parasitic in nature but doesn't have to be, just make sure you are doing something authentic and unique, Something that adds value to a customer and not just yourself. But a middleman can offer something, even it is just in the method of approach and the networks you can set up that no one else could.
     
  11. prettysue

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    You have a point there, Nazreen. But don't you know that products that can be readily be bought in the market is way cheaper than their tag price? Why? This is because almost half of the price will go to the payment for the advertisements on tv and raido, the models of the products, etc. In MLM, these are eliminated since you will be the one advertising the products through word of mouth. Haven't you notice that Pharmanex and Nu Skin do not have advertisements on tv?
     
  12. deepak_sharma

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    In my opinion unlike in traditional marketing where it comes to sell products, the main point of MLM marketing is rather selling hope and encouragement to become successful marketer to other people.

    That's why Multi Level Marketing is considered relationships business, not sales business.Therefore it is hugely affected by the people you hire for MLM.
     
  13. Nazreen

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    Yes, I have to agree with you that Pharmanex and Nu Skin don't have advertisements on tv and all of their products are just advertised through word of mouth so that should cut on some costs. I did compare their products with those that are readily available in supermarkets and their products are still more expensive.

    Even though they don't have advertisements on tv, they still have to pay for advertising when they book hotels for talks and seminars and for hiring speakers and some celebrities. But the bulk of the cost, still goes to the network which drives the prices up.
     
  14. abadie

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    i also participate in MLM since last year. but it's quite difficult to recruit people to join MLM. huh!!!
     

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