What is MLM or Multi Level Marketing

When people ask me what I do for retirement then I simply reply that I'm part of a MLM or multi level marketing company. Then the question comes, "What is MLM?"

There are lots of misconceptions about what a MLM is and what it's not. First let me explain what it is.

Multi means more than one.
Level refers to the people in your generation. 
Marketing simply means moving products or providing a service to people.

People see MLM's as pyramid schemes. This is unfortunately the stigma that is associated with this kind of business. A pyramid scheme is illegal cause there is no product or service that is moved. It might be multi generation, but if there is no product or service, then stay away.

Multi Level Marketing is big business and it's growing each year. Billions of dollars of products are moved or services are provided each year. This tells me that this kind of business is working and it's not an illegal scheme.

Some people also see MLM as some kind of door to door sales or selling directly to people. The best way to explain this is to look at the three most common types of selling.

First there is retailing. Most people are familiar with this. It's the mall where you buy your groceries or the corner shop or going to any kind of shop to buy something.

Second is direct selling. This includes things like vacuum cleaners, encyclopedias, Tupperware and so on.

Third there is Multi-Level Marketing. That is moving product or services using more than one generation.

Do not see MLM as direct sales. It is definitely not direct sales. You don't have to go door by door and sell your product or service. Don't even think about selling when you sign up. Concentrate on building your organization and the sales will come naturally. 

You have to concentrate on training your generation to train their generations to train their generations. You have to see yourself as the CEO of your company. You are in business for your self, but you are not alone. There is huge support in your up-line. They will always support you if you have issues or questions. 

In fact, your up-line wants you to become successful. They want you to be happy. They want to help you because, if you are happy, they are happy.

So, if you are not selling, then what is mlm? 

This is the beauty of the system. Unlike retailing or direct sales you don't need thousands of customers. In the end that's where it will end, but to be successful, you only need 3-5 hard workers under you. 

You then teach these 3-5 people how to get their 3-5 and then those 3-5 teach their 3-5 how to get their 3-5 and so on. Do you see what's happening here? No need to explain or sell to thousands. Just get your people underneath you to get working. The products or services will move the more people understand and work the business.

To give you an idea of what I mean, I have a diagram below that explains this in more detail.

what is mlm

The gray column shows the number of people you will have in your fourth generation if you only sponsor 2 people. At the bottom you will see that you will have 16 people in your 4th generation if you only sponsor 2 people. Example, you sponsor 2, those 2 sponsor 2 and so on. This leaves you with 16 people in your 4th generation.

Now look at the huge difference if you sponsor just 3 more people. So, you sponsor 5 and teach them how to sponsor 5 people. Then those 5 teach their 5 to sponsor 5. By just sponsoring 3 more people you have a 4th generation of 625 people in your organization! That is 609 people more than if you only sponsored 2. 

This is the real power of Multi-Level Marketing. You only need to find 5 people that are willing to work and that understands the concept. Very important though is that you MUST support the people you sponsor. You must mentor and guide them to become successful. Spend some time in the beginning on your business. Treat this as a business. Put time and effort into your MLM business and you will reap the benifits.

It's not a get rich quick scheme.  Take your time and sponsor the correct people. People that are serious to build their matrix just as you are about yours.

If you want to signup for a free 14day trial, just click the button below.

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