The Basics of MLM
January 27, 2007 | By admin | No Comments »
Let us start from the basics.
What is Network Marketing or MLM?
It is a unique and powerful business model that combines direct marketing/selling with franchising.
You can read the whole description here at Wikipedia:
http://en.wikipedia.org/wiki/Network_marketing
To tell you the truth, I feel that to try and understand the whole of the MLM industry is very complex. Even people who have been in MLM for years may not be familiar with many areas. So I have to start from the most generic and the most simple truths.
In the past, many have regarded MLM as a very shady and unregulated business because it is a relatively new business model compared to Franchising.
It is very interesting to take note: When franchising was relatively new, many rejected the idea. They even complained to the regulating bodies to shut it down because many people refused to see it as a legitimate working model and reacted mostly out of fear (probably afraid that their farms or small cofee shops will go out of business).
Today, people regard franchising as a legitimate and powerful business model. Just look at McDonalds and how successful it is!
The point is, network marketing is following the similar path and it is only a matter of time before it is widely regarded as a powerful form of business. The FTC and other governmental bodies are laying out strict rules and regulations in place to regulate MLM companies.
Of course, just like any business, you have to see if you have the aptitude (the innate inborn ability to do a certain kind of work) to handle it. I will cover it in another post.
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