Multi-level marketing (MLM) is a marketing strategy in which the sales force is compensated not only for sales they personally generate, but also for the sales of others they recruit, creating a downline of distributors and a hierarchy of multiple levels of compensation. Other terms for MLM include network marketing,pyramid selling, and referral marketing.
Most commonly, the salespeople are expected to sell products directly to consumers by means of relationship referrals and word of mouth marketing. Some people equate MLM with direct selling, although MLM is only one type of direct selling. Making money on-line is easy now day, because of this business model.
MLM companies have been a frequent subject of criticism as well as the target of lawsuits. Criticism has focused on their similarity to illegal pyramid schemes, price-fixing of products, high initial start-up costs, emphasis on recruitment of lower-tiered salespeople over actual sales, encouraging if not requiring salespeople to purchase and use the company’s products, potential exploitation of personal relationships which are used as new sales and recruiting targets, complex and sometimes exaggerated compensation schemes, and cult-like techniques which some groups use to enhance their members’ enthusiasm and devotion. Not all MLM companies operate the same way, and MLM groups have persistently denied that their techniques are anything but legitimate business practices. In contrast to MLM is single-level marketing. In single-level marketing, the salesperson is rewarded for selling the product, but not for recruiting or sponsoring other salespeople.
Amsoil has 7 revenue streams of making money with it’s network marketing business model. You work at your our pace.
1) AMSOIL Personal Retail Sales (click here to read more)
2) AMSOIL Preferred Customer (click here to read more)
3) AMSOIL Catalog Sales (click here to read more)
4) AMSOIL Internet Sales (click here to read more)
5) AMSOIL Commercial Accounts (click here to read more)
6) AMSOIL Retail on the shelf accounts (click here to read more)
7) Sponsoring New Amsoil Dealers (click here to read more)
Direct selling, network marketing, and multi-level marketing
“Network Marketing” and “Multi-level Marketing” are generally considered to be synonyms, and a subset of direct selling.While “direct selling” and “network marketing” refer primarily to the distribution system, the term “multi-level marketing” emphasizes the compensation plan more. Other terms that are sometimes used to describe multi-level marketing include “word-of-mouth marketing”, “interactive distribution”, and “relationship marketing”. Critics have argued that the use of different terms and “buzzwords” is an effort to distinguish multi-level marketing from illegal Ponzi schemes, chain letters, and consumer fraud scams.Some sources classify multi-level marketing as a form of direct selling rather than being direct selling.
The Direct Selling Association, an American industry body, reported that in 1990 twenty-five percent of members used MLM, growing to 77.3 percent in 1999. Companies such as Avon, Electrolux, Tupperware, and Kirby all originally used single level marketing to sell their goods and later introduced multi-level compensation plans. By 2009, 94.2% of members were using MLM, accounting for 99.6% of sellers, and 97.1% of sales. The DSA has approximately 200 members while it is estimated there are over 1000 firms using multi-level marketing in the US alone.
Independent, un-salaried salespeople of multi-level marketing, referred to as distributors (or associates, independent business owners, dealers, franchise owners, sales consultants, consultants, independent agents, etc.), represent the company that produces the products or provides the services they sell. They are awarded a commission based upon the volume of product sold through their own sales efforts as well as that of their downline organization.
Independent distributors develop their organizations by either building an active customer base, who buy direct from the company, or by recruiting a downline of independent distributors who also build a customer base, thereby expanding the overall organization. Additionally, distributors can also earn a profit by retailing products they purchased from the company at wholesale price.
The Synthetic market is expected to continuing growing well into the future. Project annual growth is expected to grow about 7.3% a year by the year 2013. 2011_June_whats_driving_the_growth_of_synthetics.pdf
HERE ARE A FEW BOOKS TO HELP WITH YOUR ONLINE GOALS.
How to Start Your Online Affiliate Store is an Internet marketer’s step-by-step guide to starting an online business. It shows how to set up money-making online storefronts without complicated merchant accounts, inventories and product shipping.
With years of Internet marketing experience behind him, the author offers clear and concise instructions that lead to the creation of an online presence. He shows that anyone can start making money online, but first you must have that intention. The methods described in this book are based on solid business models not Get-Rich-Quick schemes.
“Vic Johnson’s advice has added tens of thousands of dollars to my business over the past year. In fact, one of his ideas added over $100,000 revenue in one month. Pay attention to him and his material, you will be glad you did. Vic is one of the best things that ever happened to my business.” – Bob Proctor, Best-selling author and star of The Secret DVD
“His first course that I purchased for $60 got me into the industry. I listened to it and wrote everything down point by point and did as much as I could. I made $8,000 on one site alone.” – Roger Gauthier, CEO, Tri-Vision Global, Inc.
“Vic is truly a master. He took an idea, a dream, a vision he had, and methodically built it into a mini-empire. Vic is not only one of the most prolific marketers on the Internet today; from dealing with him personally on numerous occasions, I can also vouch that he’s one of the most honest, ethical and downright nicest, as well. It’s often been said that ‘if you want to find the diamond mine, first get yourself the best possible map.’ If your goal is to create a six-figure income via the Internet, then the map – in this case – has an actual name. It’s Vic Johnson!” – Bob Burg , Best-selling author of Endless Referrals and co-author of Go Givers
In this strategy-packed guide, top e-business consultant Scott Fox reveals the powerful but simple methods for striking it rich on the Net. Exclusive interviews with dozens of “mom and pop” entrepreneurs prove how easy it is to get started and build a million-dollar enterprise. Readers get:
An inspiring guide to e-business opportunities, including “instant e-businesses” that require no start-up capital or technical training * proven strategies for making money from home and turning hobbies into businesses * low cost web marketing and product tips * legal and financial advice * detailed vendor recommendations * years of expertise and experience in one easy-to-use book Internet Riches also offers an innovative action plan for brainstorming new business ideas, and fun exercises to help readers determine the best moves for their particular situations. Filled with practical pointers and motivational interviews, it’s the most powerful guide ever to finding financial freedom online!
Filed under: Amsoil Information, Amsoil MLM, Amsoil News, Featured · Tags: AMSOIL Catalog Sales, AMSOIL Commercial Accounts, AMSOIL Internet Sales, AMSOIL Network Marketing for 40 years and still growing, AMSOIL Personal Retail Sales, AMSOIL Preferred Customer, AMSOIL Retail on the shelf accounts, Direct selling, how to make money online, make money online, multi-level marketing, network marketing, online business, referral marketing, Sponsoring New Amsoil Dealers