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What about MLM

What about MLM?

Definition: MLM is an acronym for Multi-Level Marketing, sometimes called Network Marketing.

So as the name suggests, multiple levels of people are marketing a product to consumers. A sales person sometimes referred to as a distributor, member, affiliate, partner or associate. They are seeking customers and recruits as well as teaching potential sales persons on how to acquire new customers.

Companies actually prefer multiple levels of marketing including using both MLM and traditional companies. For example, if a traditional company announces, “Refer a friend and you’ll receive a discount on your next purchase,” this is multi-level marketing. Health clubs, real estate, telecommunications, and countless other industries use this method.

Even professionals such as doctors, dentists, and accountants depend on their customers testimonials. Everyone of these businesses try to get their customers to advertise and market their product or service to their friends and neighbors.

So let’s discuss What about MLM is compared to a Traditional Company.

The Traditional Company

In a traditional company, a sales Director is hired to manage sales people for the company to promote their product or service. The company is limited to the number personnel they can hire based on the sales and financial resources the company has to pay salaries. As sales increase, the company can hire personnel.

Multi Width Marketing

This approach could be defined as Multi-Width marketing because it expands the organization horizontally as compared to Multi-Level marketing, which expands its organization vertically.

The MLM Company

An MLM company is initiated by recruiting one person who acquires customers and recruits sales people, just the same as a traditional company. However, each sales person is given the choice to become a manager, who can recruit more personnel. Sine the MLM company only pays commissions, and not salaries; there are no limitations on the number of sales persons or managers one can recruit.

The benefit to the company is it provides rapid expansion based on the number of trained sales persons. This also benefits the sales people because their income isn’t limited to only what they can sell since they also earn commissions from the sales in his or hers downline.

Five Ways to Market

MLM is actually one of the five main methods used by companies to sell and distribute a product or service to a customer.

MLM or traditional companies do have one main feature in common; they provide a product or a service that makes the consumer’s life better. Once a company has such a product or service they need to advertise and provide distribution. Distributing a product involves finding customers and getting market share..

There are five ways to distribute a product or service:

  1. Brick and Morter Store
  2. Direct Mail Campaigns
  3. Telemarketing
  4. Internet Marketing
  5. MLM

These five methods utilize techniques from one or more of the other methods to gain market share. For example, a typical brick and morter store isn’t limited to only walk-in traffic. The Store can also advertise on radio, television and in newspapers, magazines, and mailers using post cards, flyers, or using Constant Contact for Email campaigns . All these advertising campaigns can increase the number of people walking into their store.

A distributor in an MLM company can adopt any or all of the 4 other methods in addition to recruiting customers through friends and family.

The main point to understand is that distributing any product means a gain in market share. MLM and the other four primary ways to distribute a product are simply methods used to increase market share.

MLM is Organic

Organically, the MLM industry is dynamic business model as it is constantly changing with different strategies and tactics. Organic really means that if you take away all the hype and misconceptions and just look at it from a practical standpoint, it is one of the best ways to bring a product to market and a great way to earn a living. However, like any profession, you have a lot to learn to be successful.

Here’s why…

  • In its organic state one person shares a valuable product or service with another not necessarily because they will profit, but because the product is viable. In other words, if they like it, maybe someone else will too.
  • A person shares a business idea with another which is the foundation of all businesses throughout history. It is as simple as the statement, I found a business I like and maybe you’d like to work on it with me.
  • The person who shares the business with another only profits if the person they shared the business with is successful and they benefit by sharing their successful techniques.

These three steps are the organic concepts of MLM plain and simple.

Let’s Talk Market Share

If you strip traditional marketing down, it would be a marketing person writing an advertisement for a Traditional company.

In MLM it is the same concept, except 96% of the people who review the advertisement do not respond while a top marketer gets a 10% response;while the average is 2% and most new to MLM quit within 30 days! .So what are you missing? A coach to mentor you on how to succeed on line.


The best way to describe MLM is to compare and contrast it to a Traditional Company, Just remember, there are no get rich schemes and to build a successful business using MLM or Traditional Business methods are the same! Y

ou have to make a commitment to your success and that takes time and perseverance. You also have to have a Business Plan and learn the skills of Marketing and Business Development! For Online Marketing. If you need help contact us at Gate One Marketing International.


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