The simplest way to explain how people do MLM business properly is this: the certain company welcomes people who are willing to be distributors of the specific products they have. Each of the distributors receives commission for each referral and sale he or she brings to the business.
To do MLM business properly, choose between two ways of doing it: you could either lean on the sales side or on the social side. If you think you are great with business or sales management, you could focus on selling the services and products of the company. If you think you could be better socially, you could focus on the recruitment and referral for the company. This means your career would depend on the people you recruit to your company.
To do MLM business successfully, you should take the time to choose an already laid down company that has passed at least three to five years. Another important thing is the company that you would want is a company which majors in consumable products. Consumable products mean repeating business and ensured growth for months, whilst products which are not consumable are only sold once. Always remember that it is best to compete based on exclusivity and value, not price.
To begin your business, it is important that you are informed on the structures and concepts which are followed by most of the other companies. Here are only some of the structures your company may or may not be following:
The basic concept of every MLM business company, this structure encourages you to refer or recruit the most people you can. The referrals you have recruited will then be addressed as the front line. The primary downside of this kind of concept is it could get difficult to handle as your front line increases in number. Always remember that aside from referring people to the business, making sure that all the members your front line has should also be active in selling products as well as creating their very own front line.
The use of a binary system permits only having two primary down line people. Having extra recruitments means putting them on the lower, if not lowest, area of your business’s structure.
Stairstep Breakaway System
This structure gives you responsibility to your group of distributors. The group you are managing will have to achieve a referrals and sales quota. The moment you achieve this quota, you will be promoted up the company structure and you will start to manage another group.
To do MLM business productively, you will need to find the perfect structure for you.