Internet MLM Secret - Free Ezine Newsletter

When I conduct my Basic Internet Skills coaching classes, I do get questions once in a while on what’s the difference between Internet MLM and affiliate programs.

First, let’s take a quick look at what is affiliate marketing …

Affiliate marketing is essentially the selling of someone else’s products. All you need is to market other people’s products and get paid a commission.

The concept started on the Internet for more than 10 years as at the time of writing. It is generally accepted that affiliate marketing began with Amazon as it recruited affiliates to help market its books and other products. For each sale, Amazon would pay a certain percentage of the selling price.

Here’s a quick overview of affiliate marketing.

*** Overview Of Affiliate Marketing ***

Thus, affiliate marketing can be regarded as a branch of Internet marketing where products are marketed using the Internet as a medium. This contrasts with information marketing where you market your own product.

Whenever we discuss affiliate marketing, Clickbank, an affiliate program provider, will usually come to mind.

Clickbank specializes in digital products with tens of thousands of affiliate merchants (meaning product owners) and affiliate marketers (those who market the affiliate merchant products).

Becoming an affiliate with Clickbank is straightforward. Simply head over to www.clickbank.com and sign up for a free account. After that, click on ‘Marketplace’, type in some keywords, and off you go and create your own affiliate link.

The next thing to do is to promote your affiliate link through various methods of web advertising and traffic generation such as running classified ads, traffic exchanges, forum and blog marketing, social networking, etc.

When someone clicks on your affiliate link and purchases a product, you will earn your share of affiliate commissions.

Now, let’s turn our attention to Internet MLM…

*** Overview of Internet MLM ***

Internet MLM is merely a new generation of network marketing whereby the MLM company itself or network marketers make full use of the Internet to promote its MLM business opportunity.

Even today, some MLMs still operate very much in the high touch, traditional manner where you make a warm list of friends and associates, then contact and invite them for an appointment for a business meeting, either 1-on-1 or an opportunity meeting.

Once you sponsor someone, you will be paid a commission of the sales of the products/services consumed by the new person. Now, when this new person sponsors someone else, you will also continue to enjoy an overriding commission though this person is in your 2nd level.

When the new person in your 2nd level sponsor someone else, you continue to be paid an overriding commission. And this goes on for multiple levels (or even infinite levels in some compensation plans), thus the term multi level marketing.

In recent times, more and more MLMs and network marketers are beginning to use the high tech Internet to either generate leads for their MLM business and take them off line for a face to face meeting …

… or attempt to run the entire MLM business operation – from prospecting, presenting, following up, closing, training – online. How successful this is remains to be seen as there will be a total loss of the high touch element that’s so important in the success of a network marketing business.

*** Affiliate Marketing vs Internet MLM ***

Affiiliate marketing usually operates by paying commission to the affiliate marketer who had directly caused the sale. If the new customer decides to become an affiliate marketer for the same product and let’s say, he made 3 sales, the affiliate marketer who first sold to him will not be paid an overriding commission. This is single-tier affiliate marketing. Clickbank and many other affiliate program providers like PayDotCom pays only single tier.

However, there are some affiliate marketing programs that pay 2-tiers. In other words, if you’re an affiliate marketer and you make a sale. When your new customer decides to turn affiliate marketer and makes a sale too, you get a cut. Isn’t that nice?
Thus, I would arbitrarily classify affiliate programs as single or 2-tier marketing programs while Internet MLM as multi-tier affiliate programs. Theoretically, they are simply different flavors at opposite ends of the same continuum of marketing programs, known by different names.

Why not call Internet MLMs as multi-tier affiliate programs? Well, I guess you can. And what about calling affiliate programs as MLMs? I guess you definitely cannot if it’s single-tier and you possibly can if they are two-tiers.

If you have any other views, feel free to leave your comments…

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Some of you may already know that Internet MLM is my pet subject …

Day in and day out - for more than a year - I keep thinking of how I can leverage on the Internet to build my MLM organization … FAST!

What if I can combine the TWO into ONE?

Wouldn’t it cause an EXPLOSIVE combustion like combining OXYGEN + FUEL?

Wouldn’t you agree with me that it will become a highly explosive MONEY MAKING
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This article attempts to explain what is Internet MLM.

Before I do that, let me first give you a quick overview of MLM…

An Overview Of MLM

Multi-level marketing or MLM - more popularly known as network marketing today - had been around for more than 50 years as at the time of writing in August 2007.

Amway, a pioneering MLM in the U.S. had contributed much to giving ordinary folks a business opportunity to achieve an ordinary life through network marketing. This would be clear after we go through the power of multiplication in the next few paragraphs.

In a nutshell, MLM is a method of distribution of products and services through word of mouth marketing. Distributors earn referral commissions via powerful compensation plans based not just on their own sales but also overriding commissions on the sales of distributors under them, popularly known as a downline.

Thus, it is possible for distributors to earn 5- or 6-figure monthly income due to the ‘doubling concept’ that Einstein dubbed the 8^th wonder of the world. For example, if you sponsor 2 distributors and each of them sponsor 2 over time, your organization will grow exponentially:

First, you sponsor 2 new distributors, totaling 3 (including yourself) distributors

Now, each of your 2 new distributors sponsors 2 = 4 new distributors. You will have 4 + 3 = 7 distributors.

Next, each of the 4 new distributors sponsor 2 = 8 new distributors. You will have 8 + 7 = 15 distributors.

In short, it looks like this:

1 + 2 = 3

(2 x 2) + 3 = 7

(4 x 2) + 7 = 15

(8 x 2) + 15 = 31

(16 x 2) + 31 = 63

(32 x 2) + 63 = 127

(64 x 2) + 127 = 255

(128 x 2) + 255 = 511

(256 x 2) + 511 = 1,023

…

As you can see, in MLM, your organization can quickly multiply into thousands of distributors and just imagine if you take a small overriding commission of the sales of each distributor.

The Challenges of Traditional MLM

Traditionally, MLM is conducted through one-on-one meetings in fast food restaurants like MacDonald’s or Starbucks, business opportunity meetings, house parties, etc.

Although as you already understand the enormous income potential of MLM’s, it takes a lot of effort to overcome challenges like rejection, disbelief, skepticism, discouragement, failure, low self-esteem in order to achieve the promise at the end of the rainbow.

Basically, it requires a lot of persistence and perseverance from the distributors. Thus, it is not surprising that not everyone who joins an MLM business will succeed big time just as in any traditional business understanding whereby only a very small percentage of business owners would succeed.

Another big challenge faced by distributors is that they easily run out of their warm market meaning once they exhausted their limited circle of influence comprising their family, friends, colleagues and business contacts. And they do not know how to solve this problem.

Understanding Internet MLM

With the Internet becoming not just an information highway but evolving into a medium of communication as well as marketing, MLM companies and distributors began to explore the use of the Internet to run their business.

The promise of the Internet – due to its borderless nature and the huge number of people that otherwise cannot be reached – has attracted a new brand of MLM’s to evolve..

The combined leverage of the numbers of the Internet and the multiplication effect of MLM is too good to ignore!

Besides MLM companies that run their business totally via the Internet, there are many that utilizes the Internet as a way to capture leads and then following up with the lead to sponsor them in the traditional way.

>>> Click here if you have a question on Internet MLM <<<

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The Internet is revolutionizing multi-level marketing or MLM.

Traditionally, MLM is done in a person-to-person manner through one-on-one meetings in fast food restaurants like MacDonald’s or Starbucks, business opportunity meetings, house parties, etc.

With the advent of the Internet in the last decade, Internet-savvy MLM companies began to bring their companies online. And new companies are being formed that conduct their network marketing business solely through the Internet.

What makes the Internet so attractive for MLM’s?

Here are 7 BENEFITS that draw MLM’s as well as network marketers to increasingly use the Internet for their business either solely or on a partial basis:

Benefit #1 – The Power of Many

More and more people are getting onto the Internet everyday and the Internet population is expected to reach approximately 2 billion users by 2010.

Thus, using the Internet, we can reach a huge number of people that we ordinarily cannot access in our life.

Benefit #2 – The Reach of the Internet

The Internet is borderless and you can reach people in many other countries without having to travel there physically which can be costly and time-consuming.

Additionally, an MLM company does not even need to set up a regional office in the countries that you want to do business in except where there are legal and/or health issues, etc.

Benefit #3 – Leveraging on Technology

With the advent of the Web, it is easy to use not just text, but pictures, audios and videos to share your MLM business opportunity with prospective distributors who might be looking for home based business opportunities.

Benefit #4 – Internet Provides a Rejection-free Medium

Although the Internet is a just medium for communication and marketing and NOT a magic pill, Internet MLM companies and/or Internet network marketers can employ the principles of direct response marketing.

Instead of chasing after the prospects, now you can easily position yourself and allow your prospects to raise their hands. Thus, there is no rejection which is faced by network marketers in traditional MLM’s.

Benefit #5 - Most of the activities can be automated!

Instead of having to conduct the typical network marketing activities like prospecting, presenting, follow up manually, these same activities can be fully automated using software, tools and resources on the Internet.

The only activities that cannot be automated are those that require a human touch like answering queries and handling objections.

Benefit #6 - Your MLM business can run 24 hours

In a traditional MLM, you can only work your MLM business during waking hours wherever you are. However, in an Internet MLM, you can literally have your business up and running 24 hours per day!

For instance, you can have a sales page that present your business for you on a 24 hr X 7 day basis. It can present 100 times or even 1,000 times a day on your behalf whereas you can typically present only 3 to 5 times a day in a traditional MLM.

Benefit #7 – Low Operating Cost

Traditional MLM’s can be costly to run. Let’s face it – your success depends a lot on how many prospects you meet and share your business. If you meet three prospects a day offline, your expenses can add up quickly in a month.

In contrast, there are many ways to bring either free visitors or at a low cost to your Internet MLM business web sites.

>>>  Click here if you have a question on Internet MLM  <<<

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Part 1 discusses leveraging through the
Power of ONE.

If you miss Part ONE, follow this link:
http://internetmlmsecret.com/internet-mlm/making-money-online-part-1
—————————————

Today, we talk about ‘Leverage Through
The Power Of MANY’ through the enormous
numbers of the Internet.

The Internet continues to expand at an
alarming rate…

The last I heard from the World Internet
Summit 2006 in Singapore was that the
Internet population will grow beyond
2 billion by 2010 (hey, that’s just
three years from now!

(For more details, follow this link:
http://www.rogerloh.com)

Due to this enormous number, the more
eyeballs you get to your website, the
chances for sales will be higher!

So, can you imagine your results when
you promote your website everyday
over the Internet? There will be a
snowballing effect that adds up over
time…

Next, let’s have a quick look on the
challenges of network marketing or
MLM.

* * *

Does network marketing or MLM work?

Network marketing (or MLM) is a GREAT
concept! No doubt about it.

Whether or not you agree with that,
the fact remains that it works.
Otherwise, companies like Amway won’t
be around for 50 years and many become
billionaires as a result!

However, for those who have gotten
their feet wet would agree with me
that there are certain drawbacks
(note that I’m not putting MLM down
- in fact, I’m a firm believer) and
here’s just stating a few:

(a) Too much effort in meetings,
presentations

(b) Too many rejections to face

(c) Not enough prospects

(d) Too many unknowns like unpredictable
company leadership management, “people”
issues like cross lining (after all,
it’s a people’s business :->)

Again, I’m not saying that MLM doesn’t
work; just look at those who succeeded
and getting 6-figure monthly incomes!

Now, what if there’s a way to solve the
challenges of network marketing (a) to (c)
above?

Frankly, I do NOT think anyone can offer
a solution to (d). (All you need to do is
recall that even BIG BIG companies have
disappeared from the face of this earth
just a few years ago.) You only can do
so much due diligence before getting
started…

* * *

If we can combine the LEVERAGE Of “ONE”
and “MANY”, we get the best of both worlds.

By bringing your network marketing business
online, you enjoy these benefits:

(a) You don’t need to be bogged down by
meetings that never end…

(b) You don’t need to face rejections
in person anymore (no matter how much those
leaders tell you that it’s absolutely
necessary)

(c) You won’t run out of prospects…ever!

Now, you get the BEST OF BOTH WORLDS:

- The Leverage Of ONE

Every of your downline member can
potentially bring in hundreds or thousands
of other downline members

- The Leverage of MANY

You have a potential to bring in hundreds
or thousands by getting your website in front
of countless people online day after day!

==> http://successuniversitysecret.com/go.php?c=internetmlmsecret&s=specialoffer

Claim Your Free Daily
‘Internet MLM Secret’ Ezine Newsletter ($97/mo. Value)
Plus…get an Exclusive Special Report, “Who Else Wants To Leverage
On The Global Internet Network Marketing Potential?”

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For almost a decade now since the
1990’s, many people are already
making money online.

Making money online is no more a
dream but reality that has already
been experienced by many through
various strategies such as affiliate
marketing, ecommerce (eg. Amazon),
electronic auctioning (eg. eBay), etc.

As a result, even many firmly
established network marketing (widely
known as MLM or multi level marketing)
companies as well as new MLM startups
are beginning to bring or build their
business online to enjoy the dual
advantage of:

1) Leverage through the power of ONE

2) Leverage through the power of MANY

What’s the difference?

Now, let’s talk about the Power of
Leverage Through The Power Of ONE.

* * *

You might have heard about The circle
of Influence.

Network marketing or MLM has been
around since the 1950’s and you
probably know of companies like Amway,
NuSkin who are leaders in this industry.

This business model relies upon word of
mouth advertising, meaning a person is
more likely to listen to the
recommendation of someone he or she
knows.

And since everyone, except those who
have been sleeping under their beds,
has a circle of influence of 3 to 5
closed family members and/or friends,
the business explodes exponentially,
at least on paper.

Thus, starting from ONE person, a
product or service can be marketed
through a network of many via the
“circle of influence”

A typical progression looks like this
if one person is able to bring just
2 members into a network marketing
business:

Starting from ONE:
1
1 x 2 = 2
2 x 2 = 4
4 x 2 = 8
8 x 2 = 16
16 x 2 = 32
32 x 2 = 64
64 x 2 = 128
128 x 2 = 256
256 x 2 = 512
512 x 2 = 1024
1024 x 2 = 2048
…

I’m sure you get the picture…

IMPORTANT NOTE:

While you can make money online just
through affiliate marketing, having
leverage through a multi-tier affiliate
or multi-level marketing program will
make life alot easier once your
marketing gathers momentum.

Just imagine: when your customers
become your business partners, you will
earn an overriding commission on their
sales!

Stay tuned and we’ll talk about
Leverage through the power of MANY
tomorrow…

Claim Your Free Daily
‘Internet MLM Secret’ Ezine Newsletter ($97/mo. Value)
Plus…get an Exclusive Special Report, “Who Else Wants To Leverage
On The Global Internet Network Marketing Potential?”

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