Is Multi Level Marketing (MLM) A Legitimate Business Opportunity Or Not?

I will preface the following by stating that I am not an MLM’er but many of my colleagues are, and in the current climate of financial uncertainty it is an option many are looking at.

I have tried to give a simple unbiased opinion of the pro’s and cons of the industry so that you can draw your own conclusions.

Is MLM legitimate?

The recent global recession has not coincidentally corresponded to resurgence in some previously uncool forms of marketing, such as Multi-Level Marketing, Party Plan and Home Based Internet Marketing. Companies such as Amway, Tupperware, Mary Kay Cosmetics and such like are having significant successes in their recent recruitment drives.

Multi-Level Marketing has a stigma attached to it for decades, with polarizing attitudes that have contributed to family tensions and damaged friendships. Some people would be more supportive if you announced that you had joined a new age cult. The legitimacy or otherwise of these direct selling organizations is an issue of both legal and moral standing.

What exactly is Multi-Level Marketing? (MLM)

It is a marketing strategy to sell goods or services through a network of independent distributors.
Income is derived from the sales derived from the network of personally recruited members, usually as a result of personal sales and over-rides on the teams’ volume.

Legal Legitimacy.

Countries have individual laws that define the legality of sales and marketing techniques. There is a Grey area that many companies need to navigate which is regarding the issue of definition.

The biggest compliance issue is that concerning pyramid selling, which is usually considered illegal. Most contemporary MLM companies are able to comply and adhere to local legislation, but often walk a fine line, as interpretations can vary.

Moral Legitimacy.

Prior to the Internet, recruitment was conducted with an almost evangelical zeal, with many organizations using huge motivational rallies and sales techniques that were frowned upon by many non-believers.

Some criticism and stigma has come from the perception that many of the bigger organizations inculcate members by indoctrination. Mass direct marketing to friends relatives and anyone with a pulse, many of whom have no interest in joining often alienates and causes relationship fractures and residual bitterness.

In recent years there has been a quite a shift in credibility and professionalism. Well-respected authors and entrepreneurs have started to endorse MLM. Robert Kiyosaki and Donald Trump are two that come to mind. Internet marketing allows members to strategically attract like-minded people into their network. Training is more streamlined and success is less dependent on the cult of charisma, and perhaps more equitable

Financial Legitimacy.

The compensation plans vary from company to company, and are a tool for soliciting new recruits. The power of compounding numbers can suggest that massive incomes can be earned simply from sponsoring a few people who do the same ad infinitum. Pick a number and double it ten times over and then imagine that number represented your network of distributors, who all sell and consume the companies’ lotions and potions. The lure of over-ride commissions for very little work can attract many naive members, who subsequently depart disillusioned, weeks, months or years later.
Conclusion.

As a vehicle to create passive income there are many benefits to investing the time, energy and money to create a solid passive income. Like most things in life however, there is rarely a free lunch, and those that succeed will be those that combine ambition with a verifiable action plan and under the umbrella of a stable and trustworthy organization.

5 Simple Tips to Improve Your Marketing

Getting your marketing right is crucial to the success of your business. Neglect your marketing and your going see your stream of enquires start to slow down. All businesses have to do marketing of some sort, some businesses for example a bespoke kitchen company may just rely on personal recommendations whereas a national energy provider may be looking to do much larger campaigns across a variety of different platforms. In this article I’ll be sharing 5 simple tips that you can put in place to improve your business.

Tip 1: Review your content. Content is everything when it comes to marketing. A little while ago there was a survey on how many adverts we are exposed to on a daily basis. The result came out at little over 2,500 adverts per day! Therefore its important that your advert stands out and your not going to get that to happen without perfecting the content of your ad. Keep it short and sweet with a clear message and a strong call to action.

Tip 2: Networking. Networking is a simple way to increase leads and improve your overall marketing. Attending networking events is a lot like speed dating. It gives you the opportunity to meet multiple local businesses who might be looking to buy the service you’re providing. Its important to remember not to go in and expect to come out with piles of orders. Instead try building a network of people who would happily recommend you to others whether it be friends, family or a colleague.

Tip 3: Keep it seasonal. Change your marketing to fit in with the season or a current trend. If you’re having leaflets delivered or sending out sales letters, change them to have Christmas theme in December or a valentines theme in February. It’ll help your marketing stand out.

Tip 4: Use social media to promote blog posts or articles. Social media is great for promoting something however you need to remember that no one goes onto to Twitter or Facebook to be sold to so try to engage with people than outright sell to them. Approach people will a large follower base to promote your blog posts or product through their social media pages, you’d be surprised as to how receptive people are.

Tip 5: Keep at it. Marketing is not something that will make you rich overnight. You need to keep working at it, change things that aren’t working and keep doing things that are.

Consumer Direct Marketing

Consumer Direct Marketing is the form of marketing in which the consumer is the direct target of the communications related with products and services. In this age of Information explosion there are various channels for advertising directly with the consumers and this is the prime reason for increasing popularity. Cell Phone Text messaging, email, interactive consumer websites, online display ads, fliers, catalog distribution, promotional letters, and outdoor advertising are some of the main mediums of Consumer Direct Marketing. Marketing messages emphasize a focus on the customer, data, and accountability.

Characteristics which distinguish Consumer Direct Marketing are:

1. Messages that are addressed directly to the customer and/or customers. This relies on being able to address the members of a target market. Address ability comes in a variety of forms including email addresses, mobile phone numbers, Web browser cookies, fax numbers and postal addresses.

2. Seeks to drive a specific “call to action.” For example, an advertisement may ask the prospect to call a free phone number or click on a link to a website.

3. Emphasizes trackable, measurable responses from customers – regardless of medium. Direct Marketing Channels:

A. Email Marketing:This is the most common and reliable medium of Direct Marketing.

B. Online Tools:This channels targets people who are using internet very frequently

C. Mobile phones:SMS and MMS are main mediums of marketing by mobile phones.

D. Telemarketing:Contacting customers by directly on mobile phone is also very common tool.

E. Coupons: Coupons are used in print and digital media to elicit a response from the reader. An example is a coupon which the reader receives through the mail and takes to a store’s check-out counter to receive a discount.

The main advantage of marketing is that marketers can know the results of their marketing since he receives the response directly from the consumers. In traditional advertisement such measurement is impossible. Measurement of results is a fundamental element in successful marketing. The Internet has made it easier for marketing managers to measure the results of a campaign. This is often achieved by using a specific website landing page directly relating to the promotional material. A call to action will ask the customer to visit the landing page, and the effectiveness of the campaign can be measured by taking the number of promotional messages distributed (e.g., 1,000) and dividing it by the number of responses (people visiting the unique website page). Another way to measure the results is to compare the projected sales or generated leads for a given term with the actual sales or leads after a direct advertising campaign.

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