MLM and networking marketing are synonymous with a home business opportunity.
MLM stands for multilevel marketing and is synonymous with network marketing. MLM and network marketing are home-based business opportunities by which people sell both a business plan and products to others to make money. Individuals who sell or recruit other members into their business are called sponsors. In MLM and network marketing, sponsors make money from every new recruit's product purchases and a percentage from the purchases of people their recruits sponsor.
Significance
The sales and profits of most MLM and network marketing companies are solely based on the performance of their business associates or members, as explained in the "Entrepreneur" online article "Is Network Marketing Just A Scam." That sponsors can earn large commissions from people several layers deep is highly attractive for many would-be entrepreneurs. In essence, MLM and network marketing businesses can dramatically build their profits through an incentive-based pay plan.
Training
Many people who join MLM and network marketing enterprises are not trained to build their business unless they have some telemarketing experience. However, MLM and network marketing companies often run training sessions through conference calls, where new members can listen to experienced networkers call prospects, overcome objections and successfully recruit new members into their business. Additionally, MLM and network marketing companies often provide self-replicating websites to members, where training tools are available in the back office of each member's site.
Marketing
One way to market an MLM or network marketing opportunity is to buy phone or mailing list leads of "opportunity seekers," or people interested in owning their own home business. Leads can be purchased online or through large mailing list distributors like the Direct Marketing Association. Once the network marketer has her leads, she can call people directly or mail postcards to her prospects. Network marketers can also promote their businesses online through search engine placement.
Recorded Messages and Phone Scripts
MLM and network marketing people often prerecord messages on an 800 line to increase the interest level of callers who received a postcard. The network marketer can then ask callers to leave their name and number so they can get back to them at their convenience. The network marketer can then prepare for each call, often using a phone script to keep their sales presentation on track.
History
Many more marketing and sales tools are available in 2010 compared to when some MLM and network marketing companies began in the 1950s. In those days, people had to promote their MLM and networking marketing programs in person. Now, network marketers have social-networking sites to market their businesses. Advances in technology have made MLM and network marketing a viable business opportunity for many people. Avon and Mary Kay Cosmetics are among the better-known MLM companies.
