The Dummies' Guide To MLM Business Models

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MLM Business Models are approaches designed by

both the company and the distributors for success

purposes.

You realize that the MLM Business Models are in a

form of equal winning in that; the company wants to

make profits from the products it has on market and

the distributors also want to succeed building their

businesses.

This tell us how the models of this nature of business work; the two parties involved have to play

their roles with support from one another for the business to work well.

List of things you should know about MLM Business Models

# The MLM Company is in business so, making profits is its number one priority

I have never seen anyone going into a business without having an aim of making profits at the

back of their mind. This is obvious and it should not bother you.

Much as very many Companies in Multi Level Marketing sweet talk about their system, they are

still in business and being in business means making profits.

Sometimes you find the company representatives saying that their vision is to make everyone

rich. This is true but the success of distributor’s means success too on the side of the company.

It is not bad to be with an aim of making profits from the business, but the problem comes when

the distributors look at the company as a charitable organization that is there to always help them

handle their financial problems.

One thing you have to learn as a distributor is that MLM Business Models favor both of you and

if you find a company saying that they are helping you, do not believe in what they are saying.

They need you and you also need them as well, all you have to do is follow their system and

make it to the top.

# The compensation plan is not designed basing on the interest of the distributors

Many distributors complain about the compensation plan of the companies they are doing their

businesses with, but what you have to put in mind is that before the plan is launched, the

company first look at what they will benefit from it.

It is advisable to always first do thorough research about the company you are planning to join

otherwise, you will join a company which is not in your favor so, study the plan and learn before

joining it.

The four major MLM compensation models; The Unilevel Plan, The Stairstep Breakaway Plan,

The Matrix Plan and Binary Plan are built on the principle of duplication which results into

increased products movement.

This automatically shows us that the major goal is to reach out to as many consumers as possible

by both the downlines and the uplines.

# The system intends to help everyone own a business

If there is any business that is aiming at helping everyone own business MLM business model is

the best at this.

With this system, no one is a boss for the other, but whoever joins becomes a business owner and

he is given a chance to build the business on his own pace.

This is the beauty about this nature of business unlike other industries where someone is brought

into the system to help the company owner become a billionaire here it is the opposite.

Final on The Dummies' Guide To MLM Business Models

The general idea behind MLM business models is for both the two parties to share benefits from

the system.

The distributors are given a chance to make money in form of profits and commissions from the

sales force of the people they recruit and the company also make profits from the products it

deals in.

In other words, it is a win-win situation for whoever is part of the system.

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