Monday, September 6, 2010

When it comes to the concept of network marketing, also termed MLM or multi level marketing, there is quite a bit of negative and misleading information to be found.

This article will clear up the confusion about the difference between MLM and and pyramid or Ponzi schemes.

Let’s start with the basic terms. Network marketing, also referred to as multi-level marketing or just plain MLM, refers to a legitimate business model for marketing and selling products and services.

A company which operates under the MLM model will not hire a staff of sales representatives or human resources. They don’t conduct interviews to evaluate if you are right for the job or if that job is right for you. Instead, they allow you to join the company as a member (first, by paying a start-up fee) and to spread the word and sell their products. MLM companies also pay you when you bring in other members to the business. You in turn make commissions on the amount of products/services you sell and the number of people you can recruit into helping you with sales and recruitment.

Although each MLM company differs in what products or services they offer, how long they have been in business, in their marketing/training methods and strategies, in their compensation plans, just to name a few. . .

. . .Network Marketing, Multi-Level Marketing and MLM businesses are ALL legal businesses.

Did you know that Shaklee, Avon and Mary Kay are all multi-level marketing companies?

But MLMs are often confused with Ponzi (named after one original con man) or pyramid schemes which are illegal set-ups in which members only make commissions when they recruit other members into the business.

Network Marketing companies also pay you to recruit members into the business. But they have products services to offer. The reason that pyramid achemes are illegal is because no such product/service exists.

One of the biggest reasons for the confusion between MLMs and Ponzi/pyramid schemes is that the latter were actually created by previously unsuccessful network marketers who weren’t able to make money the legal way. So, they made their own illegal rules. In their early days, Ponzi schemes were more common because they weren’t recognized as such. Nowadays, the FTC clamps down on them very quickly if they do happen to crop up and they are usually shut down before they can do much damage. The reason that network marketing companies are so strictly monitored by the FTC today is because of the past dealings and damage created by pyramid and Ponzi schemes.

So, the reality is . . .the “MLM scheme” doesn’t exist.

In reality, network marketing companies are helping thousands of people around the world to start their own businesses from home. These new business owners include people who were laid off from their jobs, those who lost their retirement funds and need a new source of income, moms who have decided that they want to spend more time with their kids, etc. And most network marketers enter into the business because they want to represent products that have already had significant impacts on their lives.

But, the most recognized statistic about MLM is unfortunately true. . .the 97 % failure rate. Yes, this is also true. Does this make network marketing a scam or scheme? No. But it probably makes you wonder what it takes to be in the elite 3%. For most of us, it takes training, work, dedication and time. If you’ve been told that you don’t need to put in any effort to succeed in network marketing, you’ve been told wrong.

The reason that network marketing is so appealing is because it offers the opportunity for residual income and the flexibility to set your own hours and be your own boss.

It’s also something that you can start out doing in your spare time and at your own pace. If you are interested in becoming involved in network marketing, you have an enormous choice of solid, stable and exciting options.

So, the good news is that the “MLM scheme” does not exist. What’s not so pleasant is that only a small percentage of network marketers are successful.

There are many factors that contribute to how successful you can be in network marketing. And having the right attitude is definitely at the top of the list. But, just as, if not more, importantly, you need the proper instruction and support from your team.

Benefits of Being an Affiliate Internet Marketer:

Affiliate internet marketing has become one of the most effective ways to advertise online. It is also one of the easiest ways for anyone with a website to make a profit online. Affiliate internet Marketing is an agreement between a merchant and a website owner. The website owner, or the affiliate, allows the use of their site for the promotion of the merchant’s products by linking to the merchant’s website. In exchange, the merchant pays a commission to the internet affiliate on all sales generated by the affiliate. Every time someone clicks on the link on the internet affiliate website and proceeds to make a purchase, the affiliate gets a commission. The merchant will pay the affiliate only when a customer clicks on the product link and makes a purchase.

Affiliate internet marketing programs are described as a win-win situation for both the merchant and the affiliate because of the pay-for-performance scheme. Both the merchant and the affiliate internet marketer enjoy some benefits in affiliate marketing. There are many benefits on the merchant’s side. It gives the merchant a wider market in which to advertise a product or service. Affiliate internet marketing will give the product or service the maximum exposure that it may not get with other traditional advertising techniques. The more affiliate sites a merchant has, the higher the traffic, which can convert to sales. Affiliate internet marketing is the equivalent of having an army of sales people who will do the advertising and will only get a commission if a customer purchases.

Meanwhile, since an affiliate internet marketing relationship is a win-win situation, the affiliate also enjoys many benefits. Foremost among these is the easy way to make a profit. The internet affiliate can earn by having an ad or link to the merchant’s website, which prospective customers will hopefully click and proceed to make a purchase. As soon as the customer clicks on the ad on the affiliate’s site, is redirected to the merchant’s website and goes on to buy that particular product, the affiliate earns a commission. The more referrals there are the more profit for the affiliate.

Affiliate internet marketing is an excellent way to earn money while at home. There are virtually no production costs. The product is already developed and proven by the merchant, and all you have to do to find, as many prospects as you can that will bring in the profit for both the merchant and the affiliate. There are thousands of affiliate internet programs, products and services you can choose from. You can find affiliate internet marketing affiliate programs for every affiliate internet product under the sun. Surely, there is a internet marketing affiliate program product or service out there that is suitable to you.

In addition, there is absolutely no sales experience necessary. Most internet affiliate programs offer excellent support when it comes to providing marketing material. The simplicity of affiliate internet marketing allows you to be an affiliate internet marketer at the least cost and the most comfort. You can even build a successful affiliate internet marketing business right in the convenience of your own home. In affiliate internet marketing, your responsibility is simply to find prospects for the merchant; you do not have to worry about inventory, order processing, and product shipping. These, along with customer service support are the duties of the merchant.

Because of the global reach of the internet, you can easily find thousands of prospects. You can intensify your advertising campaign by exploiting more aggressive and productive strategies such as viral marketing. By attracting more prospects, you also maximize your potential to earn. Another benefit of an affiliate internet marketer is the minimal risk involved. If the product you are advertising is not making money then you can dump it and choose another. There are no long-term binding contracts tying you to products that are not making enough money.

All the same, the best benefit of being an affiliate internet marketer is the opportunity to increase your income; and you can make a profit even if affiliate internet marketing is only a sideline business. With your own affiliate internet business, you can earn easily earn extra income, although you do have to exert effort and use your imagination to maximize your earning potential. Indeed, affiliate internet marketing is one of the simplest and most effective business opportunities on the web today.

Goto: http://affiliateinternet.net

To get more information on Affiliate Internet Marketing