By Ben Fuchs | PharmacistBen
(PharmacistBen) I’ve been doing “multi-level marketing” (MLM) my whole adult life. While some folks consider MLM to be a scam, based on my experience, that’s just plain unfortunate. In many ways MLM is the ultimate egalitarian business. It’s person to person, extremely accountable and a great way to connect with our fellow human beings.
I remember when MLM first came on my radar back when it first dawned on me that I was going to need to figure my money thing out. I was about 22 years old, married with a kid on the way, and unemployed. I was doing all kinds of odd jobs and barely making ends meet, while borrowing from Peter to pay Paul where Peter was my parents and Paul was the IRS. I had student loans and dozens of other financial obligations I had to settle up.
Then one day, my upstairs neighbor Cynthia invited me to a dinner event. It was there that I was introduced to multi-level marketing for the first time and I was blown away. The stories seemed unbelievable, but everyone was so inspired that I signed up and paid my enrollment fee. While it took me a few years to really take advantage of everything MLM had to offer, I eventually found out the promises were legit. Today, nearly 35 years later, I’m a believer and I can report that MLM is the most user-friendly, elegant and egalitarian business model you could ever participate in.
First of all, the most important thing to recognize about “network marketing”, or MLM, is that it is nothing more than a business model. It is just another way of doing business. MLM is simply a marketing framework, a way to present the traditional, capitalist, buy/sell business structure that most of us would agree is the most effective economic strategy ever devised. There are all kinds of business models. McDonalds, Burger King and Midas have a business model called “franchising”. Wal-Mart and Kmart use a business model called “retail”. While Amway, Herbalife and Youngevity use a business model called “MLM”.
MLM is a business model for the average person. It’s a business model that regular Joe’s and Jane’s can participate in for start up costs that are next to nothing. For what is usually a thousand dollars in inventory and marketing materials, you can own a enterprise with all the perks of owning a business, including controlling your income and setting your own work schedule.
You can also enjoy tax benefits, like writing off expenses, including rent, utilities, gas, samples, paper clips and whatever else you’re using to support your business. MLM is legitimate business, and when you are participating in it, you own your own business. You’re the boss, though you have no employees and little or no inventory.
MLM is the ideal model for the independent-minded entrepreneur who believes in lifting himself up by their bootstraps. It’s perfect for the housewife or student who wants to make a little bit of money to pay some bills. Most people can easily make a couple hundred bucks of extra cash within 30 days. It’s also an ideal business model for people who want to make a lot of money; some folks become millionaires via MLM.
Another benefit is that the income is residual. Once you get started, checks just keep coming in. If you have a good product, something people are going to use anyway, then it’s really just a question of asking people to try your product and buy it.
But if “network marketing” was only about the individual, it wouldn’t work, because it wouldn’t be a network! In fact “network marketing”, or “multi-level marketing”, is about the group as much as it is about the individual. That’s because the individual’s success is largely determined by how effectively you can create and lead a team.
It is ultimately a team-building experience and opportunity, because success and financial compensation are almost solely dependent on the participation of multiple players. It is, after all, composed of multiple levels, each of which can be thought of as a type of team. If you can grow a team and lead it, you’re going to make money. In fact, the MLM model rewards this skill set more than any other.
So how does your team grow? Well, like any business, you need a good product and you have to show it off. Give yourself opportunities by sharing with everyone you meet. When it comes right down to it, once you have a viable quality product to sell, there’s only two steps involved in demonstrating how great your product is and beginning a strong and rewarding MLM business.
Number one: Ask people to try it. Just ask. If your product is valuable, after trying it once, people will be asking you for more. “How can I buy this stuff?” Or even better: “How can I participate?”
Number two: you need to be able to inspire and motivate 3 or 4 people who will function as your lieutenants. These 3 or 4 people you can motivate and inspire to be as motivated and inspired as you are. It’s really as simple as that. “Ask and inspire”, period! MLM is a business for the inspired. That’s why the MLM business is filled with motivated and enthusiastic men and women. When you hang out in the world of MLM, you are spending time with passionate, pumped-up people.
Perhaps the most beautiful thing about MLM is the organizational structure. Like most business, it’s hierarchical. There are levels above levels above levels. Like other business models, the success of the lower levels depends on the success of the upper. Business owners have to do well or their employees won’t have jobs. In a “multi-level marketing” framework, upline success flows downward to downlines. However, unlike other business models, in an MLM context, the success of the upper levels depends also on the success of those underneath. Uplines depend on downlines and downlines depend on uplines. In MLM, there is a built-in, “win-win” relationship, where the association between levels is mutually beneficial. You are teaching, mentoring and creating successful downlines, while the people you sign up are contributing to your wealth. Their success depends on your success and yours is dependent on theirs.
MLM amplifies our connectivity and cements our relationships . It’s friends helping friends. It’s the business model combined with the friendship model. What the heck is the problem with that?
