-
Website
http://blog.cristinafavreau.com/ -
Original page
http://blog.cristinafavreau.com/2008/05/marketing-lingo-defined-multi-level-marketing/ -
Subscribe
All Comments -
Community
-
-
Top Commenters
-
Popular Threads
I’m so glad you will be doing a series on multilevel marketing! This is a great topic because there’s a lot of misinformation floating around out there. In fact, the Direct Selling Association recently launched a new Web site, www.directselling411.com, designed to provide balanced information about direct selling and address frequently asked questions on the topic.
I’m looking forward to your future posts, but wanted to expand on a couple things you said.
First, many people assume (for obvious reasons!) that multilevel marketing is a marketing plan or strategy. In fact, MLM refers only to the compensation plan. As you described, a multi-level plan provides compensation on one’s own sales as well as the sales of those they have recruited. The sales strategy used by companies that have a multi-level compensation plan is usually either party plan (group of people at the home of a hostess) or person-to-person (usually one seller and 1-2 potential customers.)
You also noted that most direct sellers must become clients themselves through minimum purchases. While it is true that most direct sellers also use the products and services they sell (and most were customers before signing up as a rep!), minimum purchase and inventory requirements are becoming increasingly rare. In those cases where there are such requirements, it’s good to work with a DSA member company because of the buy-back policy that’s part of the DSA Code of Ethics. It helps ensure one doesn't risk financial loss by trying direct selling.
The questions you propose to address are all of great interest to those researching direct selling, and each is addressed in some detail on www.directselling411.com – which I like to summarize by saying it looks at the good, the bad and the misunderstood of direct selling. I hope this will be a helpful resource for you and your readers.
Amy Robinson
Direct Selling Association
Amy, you are right on with this. All too often people misunderstand this industry (direct selling). Whether one is in a business that pays a single level compensation or multi-level, they are all a part of the Direct Selling Industry. How one sells vs how they are compensated are two separate things.
For years I have taught the only difference between a traditional business and a direct selling business is the way we are paid. All the other elements of business are present.
I believe when people begin to understand what this industry is all about and the true potential, more people can achieve greater success. One of the biggest challenges is when people misunderstand what business they are in and then deny what they are really doing, only to further tarnish their reputation.
This is why we created at our company a professional certification, so people can understand the universal fundamentals. Regardless of whether one considers themselves a mlm'r, a network marketer, a customer acquisitionist, or an affiliate, they are a direct seller and part of the Direct Selling Industry.
Success (earning the dreamed of 6-figure residuals) only comes from teh sales of products and services. We need to be proud of our industry and proud of the fact we can earn residuals through a multi-level compensation plan. To protect this industry, we must learn and master getting customers.... which is what feeds the growth of the industry.
http://www.ilearningglobal.tv/