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Why MLM is the best business model?
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Why MLM is the best business model?
Hi, this is Richard Quek here. Today I would like to share about ‘Why MLM is the best business model’.
There are many misconceptions and bad image about the MLM industry.
Some say that it is illegal. To this allegations I would say that there are some basis to these. There are of course some companies operating under the disguise of a legitimate mlm company. Many of these companies are quick get rich programs and do not have the licences and approval from the relevant authorities.
Companies that are licenced and properly regulated are legal.
The pyramid allegations have been around for a long time. In fact this allegation arise because of the structure of the mlm organization that looks like a pyramid. In fact all organization structures are shaped like a pyramid. This includes the government, the corporation and all other organizations. What makes a pyramid is not the shape but the way the system is operated.
The Quick Get Rich is another allegation. In most legitimate mlm opportunities one have to put in a fair amount of work to succeed. It is indeed not a quick get rich. The quick get rich are those where no work is necessary and a large amount of invesment is required with promise of high returns.
So what is MLM or network marketing? It is merely an effective way of distribution of products and services. It involves ‘word of mouth’ which is the fastest way of spreading the news’ The distribution model is so effective that is now being utilized by companies such as IBM, Cola cola, Toyota, to name a few.
Let us take a look at the powerful concepts of the MLM business model.
Franchising. We know that franchising is a successful model. In the MLM business when you join a company as a distributor you literally have a franchise to operate the business anywhere in the world. So for a mere $100 or so you have a franchise. This is exciting!
Exponential Growth. Alebrt Einsten call this the 8th wonder of the world. This is the power of compounding or doubling. If you take 1 cent and double it for 30 days, the 1 cent is now more than 10 million dollars. This is what make MLM a powerful business model.
Leveraging. Leveraging or scalebility is another important concept in the MLM model. It is a matter of many people in the organization, each one doing a littke bit. This is what John Paul Getty quoted, “I rather earn from 1% of 100 people effort than 100% of my own effort”.
The Internet. With the increasing use of the Internet it has changed the way of doing the MLM business. It is no longer restricted to the warm market. Rather there are millions of prospects everywhere in the world. All you need is your web site and generate traffic to it.
Let us look at some of the benefits of the MLM business:
No experience needed
You do not need any mlm experience to get started. You can learn as you earn. Furthermore, you’ll be trained by your upline support system.
Low set up cost and operating expenses
To get started in the MLM business you only need a few hundred dollars. This is small when compared to any conventional business. The operating expenses is also small.
Can be operated on a part time basis
You do not have to quit your job or business to get started in the MLM business. However, your eventual goal is to quit your job or business to have your freedom.
One can have an International business
In most MLM companies you have the opportunity to build your business on a global basis. This is now made possible with the use of the Internet.
There is no ceiling to the income potential
The sky is the limit. You can build your business organization to as large as you want. The income is yours to determine.
One can enjoy passive and residual income
One of the benefit of the MLM business is that when you build a strong organization, you can remain passive and your income will continue to grow. This is why it is important to have a system in place.
It is a legacy to your beneficiary
In most MLM companies, the business you build is an estate that can be passed as a legacy to your family and children.
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