What is MLM exactly and how does it work and how do you get paid?

Answer 1

MLM refers to Multi Level Marketing. The premise behind such a program is that rather than a company spending money on advertising a product (s), they will use a workforce of everyday people to sell the product and compensate them by encouraging them to build their own sales teams. The way most programs are set up, you don't make very much money actually selling the product, but make the money by recruiting others to recruit others and earning a percentage on the sales of the group. The more "levels" in the group, typically the higher the compensation. You can see how the term "Pyramid" applies. The one at top who happens to have built a sales organization reaps from the gains of the others in the group - -eventually, when it becomes increasing difficult to recruit others, the ones at the bottom will stop working...then the ones above them , no longer seeing money come in, will stop ...etc until it collapses.

Answer 2

For an MLM / Network Marketing opportunity to work you need Affordable Products That Sell Well And Marketing Systems That Work !!

1. You need products that sell like Chocolates at Easter-Time, Toys at Christmas, Turkeys on Thanksgiving or Cold Drinks during a summer heat-wave.

2. The products must be AFFORDABLE to most people, EVERYBODY must be able to afford to buy them and the products MUST be consumable, so they generate REPEAT BUSINESS (this is SO important!)

3. You can't be asking your prospects to pay anything up-front, like an associate joining or registration fee, or be made to buy some kind of “Business starter kit”. (That’s a No -No!)

4. The business system, support system and marketing plan must be SO SIMPLE and is MUST BE very EASY TO FOLLOW, so that even a complete novice should be able to generate healthy, on-going, weekly earnings within just a few short months

Here’s a great example: http://www.simplyseen.com

Answer 3

MLM means Multi LEvel Marketing.
It's where a company chooses have products moved by independent representatives as opposed to traditional product movement. One person registers, then he share products with others and get paid commissions as a percentage of what's known as his 'volume'.
Some companies pay 5% commissions and others pay about 40%.
When evaluating MLM opportunities be sure to ask for and read their Policies and Procedures carefully BEFORE joining. This will let you know whether the company has integrity or not. Also you must consider how many people you will need to earn whatever your monthly income goal is. Since most people in MLM are part timers, it would make sense to choose a company where you need less people to earn more money. For example, there's a company that pays 5% in commissions ok...Their single product sells at $100. Therefore 5% is $5...easy. Now if you decide you want to earn about $10,000 per month you will need to have about 2000 people registered in your account (in your downline) in order to earn that income.
There's another company that has over 30 products and they pay up to $25 commissions on EACH person in your downline. This therefore means that if you set the same goal of $10,000 monthly, you will only need 400 people to do it.
So now you have this information, you can see how easy it is to earn good money part time and more importantly your downline will earn good money as well. IF they don't earn money they will drop out.
Hopefully I 've answered your question.