Have you ever struggled when a prospect asks you what is MLM? The concept of MLM seems simple enough, but sometime it is hard to come up with just the right words to explain it effectively.The three letters in MLM stand for Multi level marketing.

MLM Definition – Knowing The Meaning Is The First Step 

MLM definition varies from person to person, yet a certain principle runs through each definition.
Multi Level means many levels. This is a term used to explain the chain of people involved in the distribution of goods and services for a company.
Unlike conventional distribution channel used by most companies, multi level marketing makes use of independent distributors who procure the right to market the products of a company and to recruit others to do the same.

By recruiting other distributors, the initial distributor builds a team of distributors on his front-line level. As these also recruit more people who also do the same, the initial distributor builds a network of distributors on different levels of the sales force.

By asking what does MLM stand for, it is important that you also know that multi level marketing (MLM) is an innovative and smart marketing strategy employed by smart marketing companies to quickly and easily penetrate the market and deliver their products to the consumers without the costs and bottlenecks of traditional distribution method.

MLM by-passes the middlemen in traditional distribution, and this creates a wide range of advantages and possibilities both for the company and the multilevel marketer.

No MLM definition will be complete without talking about the compensation or commission structure. This is probably one of the main reasons why a lot of people are attracted to this form of distributorship.
In multilevel marketing, commissions are paid out to participating distributors who are directly or indirectly involved in the sale of the products.

The commissions are paid on many levels (multi levels) of the sales network depending on the percentage that each company sets for its profit sharing.

So, what does mlm stand for?

It stands for a method of distribution whereby ordinary folks are recruited to market the products of a company, recruit others to do the same, and earn a commission on not only what they personally sell but also on sales made by those they recruited directly and indirectly depending on the number of levels determined by the company.

MLM-How to Explain the Concept:

Here is a story you can use to illustrate the concept in a way that everyone can understand. You might consider making a version of this in your own words, and memorize it so you can explain how your business works at any time.
Lets say there are two Superstores in your community. Superstore #1 is where most people go. They offer a Shoppers Card for filling out a short form, and you can save a few dollars on each trip by presenting the card. Superstore #1 buys a lot of expensive advertising on television and in newspapers to promote their savings.

Superstore #2 across town decides they want to attract more business. They know that word of mouth is the best advertising there is. So, Superstore #2 starts a frequent shopper program that gives you a discount of 15-20% on everything you purchase. That is a good bit more discount than any other store around offers, so you will be anxious to tell your friends and neighbors about it. Hey Joe, go check out the frequent shopper program at Superstore #2, you can save up to 20% on everything you buy!

Now, to build up even more business, Superstore #2 also gives you a commission on purchases made by people you refer to the frequent shopper program. On top of that, when the people you refer start referring people, you will get a percentage of all THEIR purchases as well. Its a small commission, but it adds up fast. This is beginning to get pretty exciting, isnt it?
Pretty soon, just by telling everyone about Superstore #2, you will be getting enough commission to pay for all your own purchases. The more people you refer, the more you will make. You could easily end up with a significant income just from telling people to sign up for the frequent shopper program at Superstore #2.

This is essentially how network marketing works. You spread the word, telling people about your products, and the opportunity to make money telling others about them.
Here is another, shorter explanation that I use. Again, put this in your own words and memorize it for a quick explanation.
MLM is all about using your products, and building a team of associates who also use the products and tell others about them. You get paid for the products that are purchased and sold throughout your team. The money normally spent on advertising is paid to you and me because we are doing the advertising.

MLM- An Expert opinion on MLM:

If you’re considering a MLM opportunity, you have probably read a lot of opinions about the pros and cons of this type of business.
I found a column with some interesting comments over in the USA TODAY Money  section.
USA TODAY Ask an Expert

In this column, the author is answering a question from a reader about multi-level marketing. Apparently the author had a negative experience with MLM  and was struggling to provide a balanced and fair opinion for the reader.
Here are a couple of short excerpts, with my comments.
while everyone gets excited about the idea of recruiting people to join below them and the geometric growth that can occureventuallysomebody will actually have to sell the companys product to someone
A better way to put this, I think, is to say that product will actually have to be purchased and consumed by someone. In a good MLM opportunity, with quality and fairly priced products that people actually use, there will be quite a lot of consumption and product usage by the distributors themselves. Retail sales to customers outside the marketing plan will normally happen simply by spreading the word (not everyone will want to be a distributor), so you should see product consumption two ways.
That said, if someone believes you can start a business and just recruit people and nobody uses or sells the product, certainly youll have the scenario that the columnist is referring to. This can happen when there is incentive to recruit based on bonuses paid on start up package purchases, along with heavy emphasis on recruiting only.
If its all about recruiting, getting bonuses on start up packages, but no ongoing product sales or usage, there is a big problem. But, in a good situation with a reputable network marketing business, this is not going to be the case.
Here is another comment from the column:

All of us have a limited amount of people we know to whom we can pitch a business opportunity be prepared to try and sell people you love a business they may not want after you barrel through your friends, your acquaintances and co-workers will become your next target. After that, who I think this happened a lot in years past, and even today when an upline group teaches only the belly to belly warm market approach. In theory, you can contact and try to sell everyone you know. Then, hopefully, some of them will join and start doing the same thing with their warm market. Sooner or later, you should have a nice group going and a solid income.

In reality, it usually doesn’t work that way. Eventually, for most network marketers, it will become necessary to go outside that warm market if you want to expand your business to a full-time income level and beyond. This is where the Internet and modern technology has changed things so much.

Success in  MLM or Multi level Marketing is no longer confined to who you know and how well you can work that local warm market of friends, relatives, and acquaintances. Anyone now has the opportunity, with the proper coaching and support, to tap into a virtually unlimited pool of prospects who are actively seeking ways to work from home or start home based businesses.
With all respect to the columnist in USA TODAY, network marketing has changed. Its no longer all about chasing friends and family and becoming an unwelcome pest. Its about presenting your opportunity in such a way that opportunity seekers will find you and come to you hungry for information. Its a different world out there now.

Multi-Level Marketing ( MLM ) – A business all about people:

MLM will always be a business about people. Some cynical recruiters might say its just a numbers game.You throw enough mud against the wall knowing that some will stick. A few network marketers view the business that way, and simply ignore prospects who don’t join right away, or who ask a lot of questions. Im sure glad Im not in a group with anyone who thinks that way.
Strictly working percentages and not considering the human factor isnt the way to build a long-lasting and profitable network marketing business. People are not numbers – theyre humans who have dreams and desires just like you do.
Your job is to help them achieve the level of success they desire with their business. Some will desire just a part-time commitment and income to match. Others will aim for a full-time business to get them out of a job or career path that they dislike.
To help your downline associates achieve their goals, you must have a desire to be a mentor, and a willingness to patiently work with them. Sometime your downline associates just don’t grow and build up their business as fast as you think they should. Sometime theyll start out right, then quit doing the things required to be successful.
Life events and changes sometime get in the way, even for our hardest working downline team members. Just treat each of them as an individual, and work with them to build their business at whatever pace is comfortable for them. Don’t give up if you feel someone moves too slowly. Work with them and encourage them to be the best they can be.
This is an underlying secret, one of the keys to ultimate long-term success in network marketing.

3 Easy Steps on How To MLM?

Since the beginning of creation as well as the very first exchange of goods or services theres been a burning desire to reach your goals in one way of enterprise or another containing overtaken many aspiring entrepreneurs.

The character of business and business has evolved with time and after this Internet marketing may be the hottest trend considering that sliced bread. Few people succeeds, however for those that have expertise, or perhaps a little insight, the rewards might be wonderful.

Generating income on line doesnt always have to get hard. Yes, like anything, it does call for determination, focus, and several luck, but if you apply the correct techniques, success will be as simple as 1-2-3.

For instance, here are three standard steps for on-line success:

  1. Set up a approach or system to succeed in the masses with your sales message
    2. Locate a product or service thats sought after
    3. Maintain a built-in process that will produce a steady, residual income

There are a few stringent guidelines for choosing the right mlm opportunity, asking the proper questions before hand, and verifying the antecedents in the organization that certain wishes to sign up. The following are some of the most significant guidelines to follow along with:

The quickest way to assess a company’s wellness is always to view the length of time they have been in function. Undoubtedly any company containing greater than 6 years available with proven financial records is really a business which might be worth considering. If youre sufficiently fortunate to get find a company with approximately 5-6 years in the industry, or a strong product line, you need to join as soon as possible. This is actually the stage of the firm in which the business structures start to mature, and revenues often are going to boom.

The product longevity can be very important, and any overall health item is a good option regarding longevity, as it will remain a strong item for years to come. If your company product is based on technology or something similar that will be interpreted to become short-run, look thoroughly just before investing your own personal funds.

You can spend an eternity trying to receive the essential experience. Otherwise you can help to save that time and by learning from others who have already paved the way. The challenge is, needless to say, to find a marketing expert that will help you.

Thats not me a marketing “expert” myself. In the past, nonetheless, Weve acquired some valuable marketing insight and encounter. Let me reveal to you the cornerstone for my philosophy in everyday life and advertising success.

I really believe that success in mlm is in helping other people. Its really a mutual relationship. The a sense of personal achievement is significantly higher when you support others, as well as the dollars are much more drastic and meaningful.

Today, so many people are trying to find Affiliate marketing success in the comfort that belongs to them residence. Those who achieve it the quickest are the type who find a very good item, set up a system to succeed in the masses, and develop a way to duplicate themselves. It’s so simple.

Generating massive income online can be very effortless, if done the proper way.

Getting Started in MLM

Hi there, traditionally in multileveled marketing or MLM, upon agreeing to go into business with a sponsor or a group and team one of the first things they ask you to do is make a list.  They will jog your memory of nearly everyone you know, your barber, the cafeteria lady at your kid’s school, all the way to your minister.


Obviously, this list making method and relating to your “warm market” has a golden track record that has worked for years and has assisted thousands of people.  However, with the advent of the internet making a list is not necessary any more.  In fact archeologist probably will dig up fossils of people with their list in hand.  Getting started in MLM today can be a much easier process that does not include calling on friends, family, and associates.


Think about it for a moment, the psychology of getting someone in your business has changed.  Years back it may have been great.  The response may have sounded like this: “WOW, Jim called me to start a wonderful opportunity, he must really think well of me to go into business with him.”  Today, because of the great failure rate in MLM/network marketing/home based business (up to 95%) when people get the same call it is a different response.  They may say, “Jim is trying to get me into one of those pyramid things honey,” or “Jim wants to get rich off of me and my list of associates,” or “Jim has hit rock bottom, he has started a network marketing business.”


The tides have change for the same reason Egypt and Libya has dethroned their former leaders: it is because of the wide spread ability of information via the internet.  Everyone and their mama have heard of MLM and perhaps heard of it in a negative or wrong concept.  It is not in the mainstream media in positive light, since it is not seen often in reality shows, or news (besides negativity), it gets a bad rap.  You may hear people say, “Start a real business.”  I don’t understand this saying either.  Why the government recognizes MLM businesses as REAL businesses with real tax breaks and incentives and some you can start with as low an investment of ten nallas (street-term for dollars).


Donald Trump and a few other wealthy guys (Robert Kiyosaki) say that if they were poor and broke and needed to earn money right away, they would join a good network marketing company to start their capital.  So the reason I go through all this is to help you get it out of your mind that MLM is any worse or better than any other form of business and trade.  Also you can start your MLM business the traditional way or a way I have come to see plenty success.




That’s right, do not sell anything.  The better way to go is to be consultative.  You have to treat your business like a business when you are getting started in MLM.  Let your friends, family, and associates know what you are doing by having a launch or an announcement.  Tell them your edge as oppose to your “so-called” competitors, tell them why you went into business and why this particular business.  This could be in the form of an email, phone, telephonic conference, at your house gathering, or anything.


Do not bring a sponsor or up line to help close because then it makes you appear you are not in full control and it can be intimidating.  The thing to remember is to respect what you do and others will respect it too.  If you tell people, “I started this lil thing to bring in some lil money,” it will forever be in their mind as this “lil thing.”


Let them know this is a real business a big operation and these are your products or services and if they are ever in conversation with people in the market for your products or service, they should make a referral.  NEVER EVER recruit family or friends into business.  If they want to join, make them go through a process to work with you because they will learn that you have your friend side, but you also have your business side.


Lastly, begin the process to learning the internet and marketing.  As you learn these things they just open the doors wider in your ability to reach the people you want most in your business and as your customers.  Properly positioning yourself in front of the ideal crowd for your business will lead people coming to you breaking down your doors to get or hear about your products or services (even to join you in business).  Getting started in MLM does not have to be so hard or drudgery, you just have to be as wise as serpents and as gentle as a dove.  You’ll win in your MLM and your online MLM training will be the springboard of your success.

How To Start MLM Business The Right Way:

How to start MLM is something you need to know even before you make any commitments whatsoever. Listen to this: do not join any opportunity or anybody until you are convinced you know what you’re doing.

What do you need to start a MLM business?

Step 1: First and Foremost, Get a Mentor

Successful MLM start up begins with procuring a guide and mentor. In this business, you do not need lots of financial capital but you definitely need a lot of knowledge capital, and since you are new you need to tap into an existing knowledge base and information resource that provides you with the much needed leverage.

Do not make the mistake of thinking that signing up in a good MLM opportunity is the sine qua non of network marketing success. It is not.

Getting a mentor is like riding with a seasoned, experienced, and defensive driver who knows what it takes to arrive alive. Starting network marketing is like travelling along an unfamiliar territory with a different set of traffic rules. Once you have the services of a mentor, your task is half accomplished, bringing you to the next requirement on how to start mlm.

Step 2: Get A System

In learning how to start MLM and put yourself in profit mode quickly, you need a business system with the necessary tools for all the tasks involved in building a successful network marketing business. With such a professional system, you will avoid much headache and stress that traditional network marketers encounter.

A good business system provides the platform for you to carry out your MLM business in a professional way and save you a lot of time. It provides leverage so that you can take advantage of other peoples’ expertise and knowledge and avoid trial-and-error experimenting that could lead to frustrations and an early quit.

Step 3: Sign Up

If you have procured yourself a mentor and a good business system, then the next thing to do is to sign up with a good MLM opportunity after diligent research. Your MLM mentor will guide you as you embark on this amazing business venture that can transform your financial status for life.

The Secret truth about MLM Junkies

In following various MLM discussion boards and forums, Ive noticed a LOT of MLM business opportunity seekers who seem to jump from one opportunity to the next so often that it boggles my mind. It wouldnt seem to make sense. How can they make any money doing this?
Why do you think so many people sign up for one MLM opportunity after another while doing little or nothing to build a solid income with any of them?
This isnt always the easiest question to answer, but here is my take on it.building a real business and working with people is a low priority what they are looking for is fast, easy moneythey prefer the thrill of discovering a hot new MLM business to the other optionwhich is finding one good opportunity, sticking with it, and doing the WORK to build it up
Its unfortunate and ironic that these opportunity chasers are always undone by the very thing they seek unending potential and the thrill of discovery as opposed to what they perceive as (perhaps) boring sticking with one thing to success.
While successful MLMers are out there working hard on a solid opportunity, making money, and helping their group do the same the people that are just looking for easy money will continue moving from one MLM business to the next, always looking for some sort of downline building system that will make them rich with little effort.
These folks actually enjoy the hype and the pure bull thats spewed by so many MLM recruiters and will bite on just about anything that looks new and different, and promises lots of money with an easy effort.
The real key to success in MLM and network marketing is finding a solid opportunity, sticking with it, and dedicating yourself to helping others start their own business and achieve their own personal goals and dreams.
While there are useful tools and good MLM business building systems out there, they are productive only in the hands of someone who sticks with something and focuses on using them to do one thing finding other people who want to make money and improve their lives, showing them how your opportunity can do that, and supporting them along the way.
Not really a big secret at all.


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