Internet MLM Secret - Free Ezine Newsletter

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.

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