Wednesday, February 17, 2010

Multi Level Marketing

Multi-Level-Marketing or MLM is a word that evokes passionate expressions from people who heard it. It normally fall in the extreme view; either you like it or don't. Those who like it, borders near to religiosity and those who hate it are the same. You can't put these groups of people together.

Why is such a word as MLM can evoked such a passion? Try this, go around and tell everyone you meet that you are in a MLM organization, and see their reactions. Most would be polite, one or two may want to know more, and in fact you might even "sponsor" (as they say in MLM parlance) one of your friends. Though the majority would just avoid you.

So what exactly is this word? A word that could even break up marriages (yes, it had happened).

MLM is actually a simple sales method. There is nothing wrong in selling stuff to people or even your friends. Everyday, you are selling something to everyone. To your colleagues, in getting them to agree to go to lunch at a particular place, and right down to your kids, getting them to do their homework. Of course others are doing it too. It doesn't have to be an exchange of money, maybe a simple gesture of covering up for your lateness at work to maybe changing shifts with a colleague. Even with friends, relatives, and in most that we interact closely. Unless you are a hermit.

Even me, I got you to read this post, didn't I?

What MLM does is sells through your network of friends or those that you know. It's funny how one can overreact to this. I do not know what rules these people have, it seemed that its wrong to sell things to your friend (which they have already been doing), instead its perfectly alright if their friends buy from other people (like shopkeepers, store owners, food stalls)?

Its actually a simple sales strategy that works on the principle of word of mouth. How many have seen the latest movie by James Cameron? Need I say the title? And its simply because of this a lot of people went and see it (I did, together with family).

The thing is, did you get paid for recommending the film? Of course not, nonetheless you still talk about it. The product range could as simple as your favorite perfume or to your favorite restaurant and even your favorite vacation place.

That's where MLM comes in. It pays you based on your recommendation to your friend, to get the product and it goes on and on.

Detractors simply point out that if that were to happen, you need another planet to sell more. Of course that won't happen. Do you have a TV set at home? What about a fridge? Handphone? Practically everyone has it. When you go out, do you still see shops selling these items? Of course there are. Why? Simply because people will replace these items over time. With MLM, not everyone will buy, those that buy, can drop off and join again and so on. So as you can see, there can never be a saturation point. Not everybody will buy every time.

................................................To be continued (I'm a bit tired because of my new project and nope its not about MLM). See you tomorrow.


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