MLM Success Interviews from... www.how-to-build-a-website.co.uk (link above) Ed Fry & Matthew Szantyr
Ed Fry: I�ve heard of MLM, but not entirely sure of what it is and how to benefit on a large scale. I interviewed Mathew Szantyr on tips for network marketing � otherwise known as the �MLM Ninja�.
** MLM = Multi-level marketing
What is network marketing?
Network Marketing, otherwise known as MLM, is simply a business model that allows an individual to market the parent company�s products for a percentage of the profits. What is unique about it is it also offers the opportunity to recruit others to do the same.
Those that choose to get involved become your �downline.� MLM compensation plans vary however you generate income by retailing products, recruiting others and from a percentage of the retail profits your downline generate as well.
As you can see�the potential is there to truly own your ow n business by both retailing products and building a team of distributors to do so as well.
What is the difference between MLM and illegal pyramid schemes?
First came MLM and then along came the pyramid scheme. The MLM business model quickly exploded into a muti-billion dollar industry but owning your own business is difficult. MLM is an opportunity to do so with very little financial investment but the level of success you attain will be determined by the level of work you put into it and of course how strong your business plan is.
Unfortunately not everyone is looking to start their own business and put the time and effort needed to succeed thus the birth of the pyramid scheme. The pyramid scheme was designed to look like MLM, the legitimate business model seeing so much success, thus the confusion.
The important variation being there is no product or actual business in the pyramid scheme. These scam artists ask for a sign-up fe e, often of a significant amount, for the �opportunity� to recruit others to sign-up as well. They recruit recruiters but into what?
Legislation was passed to make the pyramid scheme illegal. In fact� it was the MLM industry that petitioned congress to pass these laws in the first place.
Is network marketing more effective than straight affiliate marketing?
The truth is statistically speaking they are both highly ineffective. Something like 97% of network marketers fail to achieve any success. The number one reason for this is failure to take action followed by taking all the wrong actions. For example�I often advise my prospects and down-line not to �sell� anyone on their opportunity. It�s a disservice to them and to your business. It costs way too much money to convince someone to start their own business if they are not interested never mind the fact that to be successful in network marketing you need to establish a successful downlin e. This means you need to find individuals truly interested in starting their own business.
It is a much smarter strategy to position yourself so those looking to get involved with MLM or start their own business can find you.
I have also read that something like 99% of affiliate marketers don�t succeed either. This comes back to what I said earlier� You absolutely must have a viable plan to succeed. Unless you have a background in marketing or find a strong mentor to coach you the odds of success are not good for either multi-level or affiliate marketing.
However with the right marketing plan both can be used effectively. In fact my personal business plan incorporates these along with many other monetizing strategies to diversify my income streams and what I coach my downline to do as well.
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