The Rise of Multi-level Marketing Business: Is it for Real?

The Rise of Multi-level Marketing Business: Is it for Real?

Multi-level marketing business (MLM) uses the marketing strategy where the sales force is compensated for the sales they make personally as well as for the sales made by others they have recruited. This creates a line of distributors and a hierarchy of multiple levels where multi-level compensations are given. This kind of marketing strategy is also known as network marketing, referral marketing, and direct selling.

Critics are of the opinion that multi-level marketing is basically a pyramid scheme. That means it is a business model where participants are promised payments for enrolling others into the scheme, instead of getting compensation for actually selling the product. Pyramid schemes are considered to be illegal as the companies are supposed to market their product directly to consumers by means of word of mouth and referrals.

Companies using MLM have been a target of lawsuits for activities like price–fixing of products, recruitment of lower rung salespeople over actual sales, and high initial start-up costs, which are considered illegal. Although it is also true that not all multi-level marketing businesses operate the same way and many MLM groups have always emphasized that their techniques are legitimate business practices.

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To create a successful multi-level marketing business, you need a perfect home base. A WordPress blog is the preferred solution for this purpose. For those who are not confident of how to go about creating and running a WordPress blog, the role of the WordPress multi-level marketing plug-in comes into action. These smart little applications help the blogs run smoother, get more traffic, and build better SEO.

Earlier it used to be a very difficult task to find and FTP these plug-ins into blogs, but it is much easier now. Just go to “Plug-ins” in the side panel, and click on “Add New” to add a new one to the blog.

This plug-in will take care of blog spam
By adding a title, Meta descriptions and metatags to every post gives the blogs more visibility.
: Connecting the blog to Tweet allows the readers to retweet the blog.
To keep people on the blog for a long time, use plug-in displays posts that are related to the content of the post they are reading.

Risk management in multi-level marketing is a very important area needing attention. The possible losses on investments and in marketing campaigns all have to be considered while planning the strategy. Three important risks include the following:

Legitimacy of a company can be a risk; to avoid this, careful research is required.
Start-up costs, like the cost required to invest in a multi-level marketing business, are important to understand. If a high projected earning for the company is realistic, greater risk can be taken.
Lack of knowledge is another risk area when people start a multi-level marketing business without much knowledge of direct selling. The company should provide regular, proven, ongoing marketing training to its sales force to minimize this risk.

By managing the risk factors and practicing a legitimate business model, multi-level marketing business can prove to be a very profitable business.