Take a peek inside the mind of an enlightened MLM distributor. You will see how he compares MLM to an invisible network of online stores, an excellent business opportunity for the open-minded person…
The webmaster, with his extensive background in Multi Level Marketing business, and his exposure to the inner workings of forces that are against MLM (just to promote theirs), will take you by the hand, to understanding the bright side of this business model.
Say, what you wanna say. To the money-makers in MLM, this may sound too much theoretical. And to the anti-MLM, the webmaster’s rhetoric may look absurd.
Well, this is making money in this industry, guilt-free.
Ethical, and following the rules.
First Of All, What Are The Rules?
If we are going to state them all here, that would be quite lengthy.
To shorten what has been laid out by the FTC, we’d like to simplify the rules by summarizing what they really want.
You know, the U.S. Federal Trade Commission is an agency established to protect the consumer from being victimized by fraud, scams and abusive companies. It was established for our own good, consumers.
And since most MLM companies are coming from the USA, and other countries sometimes refer to the FTC what action they would implement in their local MLM companies, we pay attention to what the FTC says.
If only all MLM companies and marketers around the world will just follow the rules, then we’d be all happy—no crying victims.
Here are the rules, simplified and summarized:
We can enjoy this opportunity of earning unlimited income provided that we must have a balance between overriding commissions and income from retail sales.
That’s how the FTC wants us to this business.
Let’s Talk About Retail Sales
See this business as a distributorship business.
Someone signs up as a distributor to a company, announces to the world he’s now a distributor for Company X. People who have specific needs that are met by the products buy from the distributors.
Distributor acquires the products at wholesale price from the company’s outlet/s, delivers the orders to his customers.
Retail Price – Wholesale Price = Retail Profits
That’s how supposed to be a healthy distributorship works.
Now, in this Internet era, there are some changes to how this company-distributor-customer chain works.
Instead of the usual hauling of products from company’s outlets, MLM companies now offer the luxury e-commerce wherein distributors are just provided with websites where retail customers can place orders. The company now ships the products on the distributor’s behalf.
What is left for us to do? Marketing. Sharing the websites.
Now, Let’s Talk About Overriding Commission
Supposed a friend saw you’re doing great with your new distributorship business. He inquired how to become one, and make RETAIL PROFITS like you do.
In traditional setting, you will introduce your friend to your supplier. For your efforts, the supplier might secretly give you a “referral fee” for bring your friend. The referral fee could be a “one-time payment”.
In a Multi Level Marketing business, it more than that. The usual agreement is, for bringing a new distributor, you can get paid a certain percentage off your referred distributor’s sales.
Now, for the cynic and envious people, they see this as something bad. They put themselves on the place of the referred distributor, and focus on “why is someone continuously benefiting off my efforts?”
Yes, we see that kind of thinking, especially in negative reviews online against MLM business.
But come to think of “royalties”. In the business world, there’s what we call a royalty income. Do you think it is okay for a retailer of music CDs to complain, “Why is Elvis Presley making money for every CD that I sell? He’s selfish, it should be a one-time fee only!”
Do you see? That’s how the cynic and the negative mindset think.
On the other hand, positive-minded entrepreneurs see this as a huge opportunity to build an ever-growing network of invisible stores—a network of online stores and distributors that help generate overriding commissions. Overriding commissions that are another form of “royalty income”.
Royalty income. Also, known as residual income….
A do-it-once, get-paid-for-a-lifetime” type of income.
Computer And Internet Technology Make Things Easier
We can imagine how tough the work was, during the early days of MLM business.
Granddaddy Amway would require its branch offices around the world to produce paper reports of sales. Those reports of sales must be forwarded to its global offices, every month! It’s important because, they will be the basis for computation of commissions of uplines’ overriding commissions.
Today, there are still companies who prefer to do business the old way. But, a vast majority of MLM companies have adapted to the new technology.
Sales reports are now being transmitted to global headquarters at neck-breaking speed via Internet. Commissions are being computed fast through computers, that someone could see in real-time what would be his commission for the month.
And best of all? Marketing has never been easier!
If home meetings were the “in thing” of marketing decades ago, today, distributors refer their prospective customers to their retail websites. And customers who become interested in become a distributor, can now register via websites, too.
There’s a quote that says, “Only he who can see the invisible, can do the impossible.”
I can see invisible network of distributors. I can see an invisible network of online stores.
These distributors, if they will do the business right, will generate retail profits. And not only retail profits, but also team commissions called overriding commissions if they enroll others to the network.
While others think this is a scam, as long as the governments of the world consider this a legit business model, we… the people with positive outlook in life, will focus on abundance and just ignore the naysayers.
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