MLM Advertising

Multi-level marketing is a business structure that relies on the purchase of a minimum amount of products every month, and getting a number of people to purchase those same products every month. A commission is earned every month based on the sale of those products. The original salesperson persuades others to buy in to the program; these people are often called the "downline." The commission structure allows for money to be made on what the downline representatives earn, as well as what their downline representatives earn. The incentive to promote your business through MLM advertising and to bring other people into your downline is significant in terms of potential income.

Representatives can typically expect to receive their income checks once a month. Some companies offer direct deposit. In most cases, the more people signed up under a representative as part of the downline, the higher the commission check will be. High commissions are possible because the companies spend very little money on MLM advertising. Instead, the independent representatives use word-of-mouth and product demonstrations to advertise the products.

Ideally, the products being purchased will be everyday consumable products that a household would regularly buy anyway. This ensures repeat business. The products should also be of good quality, since the entire marketing plan is based around them. Products that enjoy a good reputation will, naturally, be easier to sell, making MLM advertising for the products much easier.

In many cases, the products sold through multi-level marketing companies will be of higher quality, less cost, and can be delivered right to the home. Although the cost of shipping may add to the price tag, many companies have a flat shipping rate, so buying more will not affect the shipping cost. This encourages people to stock up on products without having to pay separate shipping charges.

When researching various MLM opportunities, people will find that company names are not immediately revealed. The MLM marketing professionals will want to give their presentation of the products and point out all of the positive attributes of the company before revealing the name. In many cases, company policy prohibits stating the name of the MLM marketing company in any advertising material. Also, many MLM companies do not allow the resale of their products at flea markets or small shops. The MLM business is reserved for people who sign up to receive these products on a monthly basis. Obviously, people interested in this form of business will want to read the fine print of all agreements.

Although MLM marketing is not for everyone, it is certainly a viable employment option for some. Once a person decides to take a chance with network marketing, he or she should work hard at it for at least six months. This allows time to learn all about the product, hone networking and presentation skills, find others to sign up, develop a downline, and start to earn a profit. During this initial phase, keep your business lifted in prayer. Discouragement is natural, but it does not necessarily mean that it is time to give up. Keep it in perspective. "And whatsoever ye do in word or deed, do all in the name of the Lord Jesus, giving thanks to God and the Father by him," (Colossians 3:17).

Stay-at-home moms find this form of business extremely appealing because they can work almost entirely from home. Of course, they will need to attend group presentations at potential representatives' homes in order to demonstrate and sell the products and recruit members for their downline. MLM marketing executives encourage representatives to sign up family and friends. This is sometimes harder than it seems, especially if a person has a history of starting, but not completing, many small business attempts. If cold calling doesn't make a person freeze up, then purchasing lists of leads for the purpose of generating interest and setting up appointments may be worthwhile.

Purchasing these lists can be a quite costly means of MLM advertising, however. The best lists are sold only once or twice so that the leads are truly interested and not bombarded with similar calls. Leads that are only given to one person or business can be as much as $5 per lead. Better group rates may apply if more leads are purchased.

MLM companies issue a 1099 form at the end of the year to their representatives. It is the responsibility of the representative, not the MLM marketing company, to pay the appropriate taxes. Any expenses incurred while trying to build such a business are tax deductible, so accurate records should be maintained. Keeping in tune with tax laws is important and can save a lot of money, especially if there are mandatory monthly purchases that must be bought in order to maintain the business. As always, when researching a new business endeavor, use caution and common sense.