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Multi Level Marketing
- 1. Multi Level Marketing You probably have an image firmly planted in your mind of what network marketing (also known as direct sales or multilevel marketing) is all about-housewives buying and selling Tupperware while gossiping and eating finger sandwiches, or a high-pressure salesperson trying to convince you how easily you can become a millionaire if only you and your friends and their friends and so on would buy and sell vitamins with him. MLM businesses appeal to people who want to work part-time and need a flexible schedule, like students and mothers of young children. They also attract people who are dissatisfied with their current job situation or who have come to believe that large corporations do not reward loyalty the way they did in the past. In an article for the Business Journal, Jeffrey Gitomer called MLM "the least expensive, lowest risk, fastest path to achieving the American dream. It is at the core of the exploding 'home-based business' segment of the economy." »¿ Vehicle Trimmer Bon from Rocanville, has interests which includes shark fishing, business opportunities and ornithology. Discovered some incredible spots having spent 2 months at Masjed-e Jamé of Isfahan. The World Federation and its national DSA's have always understood the necessity for ethical conduct in the marketplace and as such the WFDSA has developed the World Codes of Conduct for Direct Selling, which all national DSA's have approved and implemented in their national codes. All member firms including those which may be described as multilevel or network marketing companies, agree to be bound by these codes as a condition of membership in a national DSA. The most common error I see authors make is they think of marketing as a separate and distinct animal from writing. They go into a cave for two years and write their book and only begin to think about marketing when they emerge. You have to understand that as an author you're competing for attention with so much other media, you can't afford to just sit on your ass and pray. Book marketing is such an essential part of the process Seth Godin -and this might be an extreme view, I understand-says you should start marketing your book THREE YEARS before it comes out. The victim losses, here and abroad, make it imperative that the Federal Trade Commission take a vigorous pro-active stance in respect to pyramid offerings. This must include an enforcement position which enables detection and litigation prior to the delays currently encountered in recent cases such as Fortune Hi Tech Marketing and Burnlounge. Such a position would include formal investigatory efforts to determine the scope and extent of consumer injury and the verifiability of the Amway rules ostensibly in place. An absence of critical verifiable data indicating that profitable retail sales are occurring should be grounds for prosecution of an MLM as a pyramid scheme.
- 2. Reliable data concerning the MLM industry is hard to come by, but it is undeniably a large industry affecting tens of millions of consumers who are induced to purchase billions of dollars worth of products and services, ostensibly to resell as MLM distributors. The DSA estimates that in 2012, total sales of the industry were $31.63 billion, and the total number of MLM distributors was 15.9 million. 22 The DSA currently has 167 member companies. 23 In 2001 an industry expert estimated that there were over 1,000 MLM firms in the United States. 24 About a dozen MLM firms are publicly traded in the United States, with a combined market capitalization of over $30 billion.25 Does MLM Offer a Viable Business Opportunity? »¿ Ship's Master Rouge from Saint-Jerome, loves sculpting, affiliate marketing and kids. Maintains a trip site and has heaps to write about after going to Historic Villages of Shirakawa-go and Gokayama. Ask yourself whether you would enjoy selling products to the public. Find out how many hours a week your sponsor and other distributors spent on the business when they joined and how much time they spend now. Remember that no matter how good the product and how solid the plan, you'll need to invest sweat equity and money for your investment to pay off. Consider the other demands of the business — for example, going to training, recruiting new distributors, managing paperwork, recording inventory, and shipping products. Ask Questions The opposite is also true, most network marketing companies now offer a very low start up option where you do not have to purchase any product to get started, just the training and business tools. In this scenario the sponsoring distributor does not receive any commission in return for you joining their organisation, they do however now have a new distributor (and customer) who they introduced to the business and therefore any future product that is bought or sold by this new recruit is eligible for commission. I recently spoke with San Diego based, Vicki Martin , about her experience with Rodan + Fields. Here's her take on her home business and why the opportunity was so appealing for her and her family, “The decision to join Rodan + Fields Dermatologists came easily. Since 2008 the construction industry which I was previously in has been hit hard by our economic downturn and my income has been greatly affected. We were working harder for less like many of our friends. Being part of Rodan + Fields Dermatologists is allowing me to work with highly educated people who share a passion for business and for teamwork. One final tidbit I'll leave you with. On average, 99.95% of network marketers lose money. However,
- 3. only 97.14% of Las Vegas gamblers lose money by placing everything on a single number at roulette. So if you're thinking about joining a network marketing plan, and aren't dissuaded by the facts I've presented, consider instead going to Vegas and placing all your money in a single pile on number 13. Sooner or later you're going to have to take my advice and just stop now. Follow @BrianDunning Total USA sales are found in 10K filings or in public statements by company officials. With that number and the total number of distributors, an average purchase per distributor was calculated, and from that figure an estimate of maximum retail profit was made, based on a generous estimate of 30% retail profit margin on retail sales (30% gross retail profit is equivalent to a 43% markup on the wholesale purchase price). Difficulties with the Data