How to Make Money with MLM
Look for a stable company., Investigate the integrity of the company and its management., Find excellent products., Research the compensation plan., Learn about the mentorship program.
Step-by-Step Guide
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Step 1: Look for a stable company.
Find out how many years the company has been in business.
Don’t work with a company that has been in business for less than five years.
Go with a publicly traded company.
Since they are required to disclose their financial condition to the SEC every 90 days, you can easily find information about their financial stability.
It may be hard to find good financial information on private companies., Research the CEO.
Find out about his experience and background.
Know whether he has been successful in other companies in the industry.
Learn about his reputation.
This information can be found on the company’s website and in trade publications., Look for unique products that competitors don’t offer.
Choose products that consumers need and will use.
Look for products and services that are used continuously, which will ensure you repeat sales.
Find a product for which there is a large untapped market.
Steer away from fads or trends, as these may not support you in the long run.
Sell a product that you yourself use and would recommend.You can also make money with services.
For example, thanks to the deregulation of utilities, you can get in on MLM energy companies. , Find out how you get paid.
Ask what percentage of sales gets paid back to the distributors.
Find out how fair the distribution is between old and new members.Familiarize yourself with the different types of MLM compensation plans.
Research the type your company uses and evaluate how fair and generous it is.
A unilevel compensation plan pays the same amount to all distributors.This pays well if you are a good recruiter.
With a stair step breakaway compensation plan, your payments increase as your distributors’ volume grows.
Once they reach a certain level, they break away from you.
Many companies use this plan because it is tried and true.
Be aware that once a distributor breaks away, you may need to replace her to make your monthly quotas if you have them.
In a forced matrix compensation plan, the organization of distributors looks like a grid.
This means that a certain number of people you bring in to the company will work directly for you, or be on your front line.
But after that, any other people you bring in will spill over, or be placed underneath them.
This plan encourages team work.A binary compensation plan allows you to have two distributors on your front line.
After that, other distributors go beneath them.
Sales volume must be balanced between the two distributors underneath you before you receive any commissions.
This plan is simple to understand and offers fast growth.
Be aware, however, that although binary plans are designed to operate legally, some companies do not run them as they are designed.If the commission is too high, your company may fail.
The higher the commission, the less value the customer receives for her purchase. "Downlines" are the distributors beneath you.
For example, if you are seller A and recruit seller B, seller B is your "downline." You will probably earn a percentage of seller B's sales unless you are operating on a unilevel compensation plan.Downlines greater than 5 may run into regulatory legal problems, since emphasis is on selling to distributors rather than the customer.
This type of organization may be attacked as a pyramid scheme. , Ask about the training you will receive.
Find out who will train you and for how long.
Research the company’s business systems.
Find out how distributors communicate with each other and those above them.
You should be able to call those above you in the company if you need them.To succeed you have to listen to your mentors.
Learn what they have to teach you.
Find out what they did to become successful and duplicate it. -
Step 2: Investigate the integrity of the company and its management.
-
Step 3: Find excellent products.
-
Step 4: Research the compensation plan.
-
Step 5: Learn about the mentorship program.
Detailed Guide
Find out how many years the company has been in business.
Don’t work with a company that has been in business for less than five years.
Go with a publicly traded company.
Since they are required to disclose their financial condition to the SEC every 90 days, you can easily find information about their financial stability.
It may be hard to find good financial information on private companies., Research the CEO.
Find out about his experience and background.
Know whether he has been successful in other companies in the industry.
Learn about his reputation.
This information can be found on the company’s website and in trade publications., Look for unique products that competitors don’t offer.
Choose products that consumers need and will use.
Look for products and services that are used continuously, which will ensure you repeat sales.
Find a product for which there is a large untapped market.
Steer away from fads or trends, as these may not support you in the long run.
Sell a product that you yourself use and would recommend.You can also make money with services.
For example, thanks to the deregulation of utilities, you can get in on MLM energy companies. , Find out how you get paid.
Ask what percentage of sales gets paid back to the distributors.
Find out how fair the distribution is between old and new members.Familiarize yourself with the different types of MLM compensation plans.
Research the type your company uses and evaluate how fair and generous it is.
A unilevel compensation plan pays the same amount to all distributors.This pays well if you are a good recruiter.
With a stair step breakaway compensation plan, your payments increase as your distributors’ volume grows.
Once they reach a certain level, they break away from you.
Many companies use this plan because it is tried and true.
Be aware that once a distributor breaks away, you may need to replace her to make your monthly quotas if you have them.
In a forced matrix compensation plan, the organization of distributors looks like a grid.
This means that a certain number of people you bring in to the company will work directly for you, or be on your front line.
But after that, any other people you bring in will spill over, or be placed underneath them.
This plan encourages team work.A binary compensation plan allows you to have two distributors on your front line.
After that, other distributors go beneath them.
Sales volume must be balanced between the two distributors underneath you before you receive any commissions.
This plan is simple to understand and offers fast growth.
Be aware, however, that although binary plans are designed to operate legally, some companies do not run them as they are designed.If the commission is too high, your company may fail.
The higher the commission, the less value the customer receives for her purchase. "Downlines" are the distributors beneath you.
For example, if you are seller A and recruit seller B, seller B is your "downline." You will probably earn a percentage of seller B's sales unless you are operating on a unilevel compensation plan.Downlines greater than 5 may run into regulatory legal problems, since emphasis is on selling to distributors rather than the customer.
This type of organization may be attacked as a pyramid scheme. , Ask about the training you will receive.
Find out who will train you and for how long.
Research the company’s business systems.
Find out how distributors communicate with each other and those above them.
You should be able to call those above you in the company if you need them.To succeed you have to listen to your mentors.
Learn what they have to teach you.
Find out what they did to become successful and duplicate it.
About the Author
Carol Allen
Carol Allen specializes in lifestyle and practical guides and has been creating helpful content for over 2 years. Carol is committed to helping readers learn new skills and improve their lives.
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