Direct Marketing with Franchising

by Franco on November 28, 2007

Multi-level marketing (MLM, now sometimes called network marketing) is a business model that combines direct marketing with franchising.

businesses function by enrolling unsalaried salespeople (also called Distributors, Independent Business Owners, Franchise Owners, Sales Consultants, Consultants, Independant Agents, etc…) to sell products and meanwhile earn additional sales commissions based on the sales of people enrolled into their downline, an organization of people that includes direct recruits, recruits’ recruits and so on.

This arrangement is similar to franchise arrangements where royalties are paid from the sales of individual franchise operations to the franchisor as well as to an area or region manager. MLM businesses operate in the United States in all 50 states and in more than 100 other countries, and new businesses may use terms like “affiliate marketing” or “home-based business franchising”. In the most legitimate , commissions are earned only on sales of the company’s products or services. Companies have devised a variety of MLM compensation plans over the decades.

The lies that limit the future of network marketing began as so many untruths do. They were told initially to bolster up the insecurity of MLMers who couldn’t make it in network marketing which in this case, is the industry’s perceived lack of self-esteem. The lies were harmless “little white” lies, meant to make us seem bigger and better than we really thought we were. You can’t build lasting relationships with people — let alone government regulators and the press — with lies. You will be found out — and when you are, your stock, and the stock of the entire industry, will go way down. The truth is, there is so much that’s positive to be shared about network marketing — facts, not even opinion, much less lies. You may make a sale with a lie, but you won’t create a customer, and you certainly won’t build a successful .

MLM is just a new form of franchising, which was controversial in its day and now is standard business practice. MLM’s or network marketing companies are the best home based business models. MLM Marketing is the solution to the distribution costs of the most companies because there will be no more channels between the producer and the consumer.

Mlm success is hard…if you’re not properly trained. All People need is good training and determination to make an MLM business work. MLM Software is important to the success of a company. MLM can be much more than a method of distribution, in the right hands it can become a powerful tool of empowerment that can lift those members/distributors who participate. Multi-level marketing (MLM, now sometimes called network marketing) is a business model that combines direct marketing with franchising. No money may be earned from recruiting alone (“sign-up fees”), though money earned from the sales of members recruited is one attraction of MLM arrangements. MLM is just a new form of franchising, which was controversial in its day and now is standard business practice. Training has always been one of the strong points of any good mlm business. All people need is good training and determination to make MLM work.

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