Understanding Multi-Level Marketing

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11930 - Understanding Multi-Level Marketing

Understanding Multi-Level Marketing

by: Tina Rideout

Introduction to Mutli-Level Marketing
Down lines, up lines, overrides and spill over.
Understanding how Multi-Level Marketing works can be very confusing.
Most of the confusion stems from the fact that when people see the diagram for MLM they 'THINK' pyramid scheme!!
Which is totally FALSE. As pyramids schemes do not offer viable products and services and the end result is profit for the pyramid's originator.
Multi-Level marketing companies pay people who invest in it and sells the products or services that it provides is through a 'compensation plan'
Understanding a Matrix
A Matrix is the main concept in a 'compensation plan'. When a Matrix is applied in Multi-Level Marketing everyone below you in the Matrix ends up giving you a portion of the income they generate in the company. This turns into a commission paid by the Company to you. Hence, you are in the matrix of the person who recruited you.
The people you recruit into your matrix are referred to as your 'down line'. The people who they also recruit are also in your 'down line'. The people in your down line are the ones who are responsible for the amount of income that you will receive. As your downline grows, you will recieve more residual income.
People who are above you in the matrix of the MLM are your 'upline'.
'Spill over' is the term used to describe what happens when the first line of your matrix is filled up.
Overrides
The term overrides is used simply to describe the amount applied to the sales volume from the sale of the product.
What should you look for, when choosing a MLM?
When choosing a company to join, the most important factor is not the type of compensation plan, but whether that plan is achieving important goals for 'YOU'. Is it easy to enter into the opportunity? You should only have to buy a modestly priced enterance into the program.
Are you rewarded for personally sponsoring others?
Are you rewarded for recruiting multiple levels?
Is the focus on selling products to the end consumer, rather than to your downline?
Are you rewarded for training and supporting your downline?
Are you rewarded for high personal volume?
Are you rewarded for high group volume?
Are you rewarded for maintaining a monthly volume?
Does the plan provide for recognition?
Is the plan's monthly maintenance requirement reasonable?
As more Multi-Level Marketing Opportunities become available, it is not always easy to spot the Legitimate Opportunities.
The information that you have gathered will help you decide if a Multi-Level Marketing Opportunity is a good fit for you.

About The Author

Written by Tina M. Rideout. For More Information visit: http://free-internet-home-based-business.com.

This article was posted on December 16, 2004

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