Multi Level Marketing
Can you make money with multi level marketing?
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Will MLM make you some money in South Africa?
MLM is short for multi level marketing but is multi level marketing short for NOT making money in South Africa?
There are quite a few MLM programs in South Africa, but how do you know which MLM programs will work for you?
Like in some of my other articles here on Work From Home Ideas, I stress that it's the person that does the work, not the idea or program, (how much effort you put in usually determines how much you get out) but, firstly, what is multi level marketing?
Picture this: A new restaurant franchise opens, with one, two, or more restaurants in all the major towns in South Africa. The various partnership owners of the restaurants advertise their restaurants like mad. You're curious and you take the family to dine at one.
You have an absolutely amazing time: The food is superb, affordable, and the service is something to write home about. After you leave the restaurant you pop in at a friend. You rant and rave about the restaurant, and your friend is dying to go to the restaurant too. You get home and write about the restaurant on your blog. You advertise your blog post online for free by linking to it from FaceBook or from other sites you belong to, and people come and read what you wrote about the restaurant. The next day you see 5 relatives and 3 friends and you continue to rant and rave about the restaurant.
All these people dine at the restaurant too, and they're also impressed. They should be, because you don't rant and rave about just anything. When you rant and rave about something, that something is really good.
What happens next? Your family and friends later mention to you that they had a great time at the restaurant. You tell them you're glad they did, and that they should be sure to mention to their own friends how super the place is. In fact you even tell them "and don't forget to tell your friends that the prices are affordable and that the service is great, not to mention the divine food..."
Your family and friends also rant and rave about the restaurant to their own sets of friends and social circles. Some even live in other towns, but that's fine because those towns have these restaurants too. What happens next? The people your friends and family speak to (or who read their blogs) also start to rant and rave about the restaurant. Even more people go to the restaurant. And even more people spread the word about the amazing restaurant.
A LOT OF PEOPLE USE THE RESTAURANT JUST BECAUSE YOU TOLD THOSE FIRST FEW PEOPLE ABOUT IT.
The restaurant makes lots of money because of you. Do you get paid for doing some advertising for the restaurant? No. Now with multi level marketing, much the same happens, but the difference is you do get paid.
How much do you get paid? Well, looking at the restaurant example, do you really expect to earn a lot for telling just one person about the restaurant? The restaurant gains only one new regular diner. Plus you tell your friend "Don't tell anyone else about this super restaurant; let if be our secret." Now why on earth would the restaurant pay you a lot for bringing them just one new customer? They won't.
But in the example where you have told a few people about the place, and have even told those people to tell more people about it, you're bringing the restaurant more customers and deserve to earn more money for your efforts. Now how about if the people you tell to tell their friends also tell their friends to tell more people about the place, and that when they do they should also tell them to tell more people etc etc? (Wow!)
Multi level marketing will dwindle out at a certain stage, or earn you very little if you don't keep encouraging your immediate downline to tell other people about the product or service. And you should not only encourage your immediate downline to tell other people about the product or service, but you should also encourage your immediate downline to encourage those people to tell more people, and, again, to not just tell more people, but that they should also encourage them to tell even more people too etc etc.
You don't want this to happen:
1) You tell 10 people and 6 sign up (good, but you don't tell anyone else and you don't encourage your 6 to tell more);
2) All the same, of your 6, two of them bother to tell more people to sign up. Your 2 of the 6 that signed up tell 20 in total, and 8 of those 20 sign up. The 2 do not encourage those 8 to get more people to sign up.
3) 1 of the 8 bothers to get one more to sign up, and the other 7 do nothing.
4) You've gotten, directly or indirectly, 6 plus 8 plus 1
5) okay, so it's not too bad, you can always get a few more to sign up immmediately below you? But you don't even bother to try when you find that your initial 6 plus 8 plus 1 have quit their membership (usually a monthly fee) because "they're not earning anything from this MLM program." Of course they're not. They're not bothering to tell many other people about the MLM program or the product because you didn't encourage them to, you didn't give them tips and guidance, and you didn't tell them how to do it.
This is what you want to happen:
1) You tell 10 people and 6 sign up (good.)
2) You encourage all 6 to tell more people. All 6 do you proud and get 7 people each to sign up. You now have 6 and 42 in your downline.
3) You enocurage your 6 to help their 7 each, so that 42 people are receiving enouragement to build their own downlines.
4) Those 42 are getting lots of help from their upline (you and 6 directly beneath you) that they each manage to get 5 people to sign up
5) You now have 6 and 42 and 210 in your downline.
6) Because the 6 have encouraged the 42 and told them what to do, the 42 know how to encourage the 210 to get more people to sign up. Each of the 210 get 5 people to sign up.
7) you have 6 plus 42 plus 210 plus 1 050 in your downline, all happy to pay their monthly fee and keep at it because they're getting encouragement from their upline, know how to encourage their downline, and because their monthly fee is covered and they're earning a profit.
Conclusion:
One cannot say that getting such and such an amount of people to sign up will bring you x amount of money each month. Some people get discouraged and drop out. Some people are not prepared to work as hard as you do on their downline.
You may be a very hard worker and good at encouraging other people to work hard too, but you also need to encourage and help your downline to encourage and help their own downlines. If you can get that right, and get your downline to get it right too, well then, if you find a reputable MLM program, good luck, and I guess the sky is the limit.
Disclaimer: The above article, with its figures too, is merely a fictitious example for informational purposes only, to help try and explain how MLM works or doesn't work.
© copyright Teresa Schultz 2011
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