About Multilevel Marketing
Multilevel marketing (MLM) is really a structure for compensation, not a marketing approach.
Whether yours is a network marketing company, a party plan company, or a social selling company, if your plans pays compensation upon multiple levels of downline volume, your compensation plan is MLM.
Multilevel compensation offers representatives the opportunity not only to earn money on personal sales but also to earn money on the sales volume of others to whom an income opportunity is introduced.
While early direct selling companies employed independent representatives to sell their products, multilevel compensation was not introduced until the 1930s.
Today, most direct selling companies use multilevel pay plans because they help to grow businesses faster. Here’s why…
- Representatives can earn significantly more money by leveraging the efforts of others when they are paid through a multilevel compensation plan.
- Companies can shift some of the burdens of training and supporting their representatives to the sponsoring representatives.
Starting an MLM Company
Starting a network marketing company is a complex endeavor. There are many specialized tasks that need to be done.
Some of these tasks are
- business plan development
- compensation plan design
- selection of the best MLM software for your business requirements and budget
- initial recruiting
Others are strategic, such as the creation of your “story.” All successful MLM companies have a story to tell which helps attract both independent representatives and retail customers. In addition, you’ll want to create a company mission statement and a tagline.
Your story, mission statement and tagline will help to differentiate your company from others. Reps will want to share your story with new recruits. Customers who buy products will want to know what makes your company special.
Sylvina Consulting can help you, as a developer or advisor, in all of these areas and more.
Do you have any questions about how to create a successful MLM company? Get the answers you need in our groundbreaking book, Start Here: The Guide to Building and Growing Your Direct Selling Company.
Be sure to also attend our two-day corporate direct selling school, the Direct Selling Edge Conference. It’s held three times each year. Our school is pure direct selling education.