MLM Business Opportunity Basics
An Introduction to MLM (Multi-Level Marketing)
Congratulations if you are reading this page because you are investigating the MLM industry and more precisely an MLM business opportunity.
As you have surely seen, there are thousands of MLM business opportunities in existence today. The purpose of this page is to explain the MLM business opportunity basics. The basics of any successful and sustainable MLM business opportunity, regardless of the one you choose.
When you start with the basics everything becomes much clearer. You are able to then focus on what is right for you. You need to make sure that the MLM business opportunity that you choose to build, is right for you not so much from a personal point of view, but from a business and stability point of view.
You have to remember that when you are looking for a business to open, while you can have a small niche business that appeals to your likes and your hobbies if you are going to start an MLM business, it must appeal to the masses, not just you.
Each of the four basic parts of an MLM business opportunity must as a whole satisfy a need for the masses while at the same time satisfy their distributors with a fulfilling and lucrative business opportunity.
MLM Parent Company
Every MLM business opportunity will have a parent MLM company. The business opportunity that you are investigating may not be the only business opportunity that the parent company has, there are many cases where a Corporation or large company will have “sister” MLM opportunities as they will cater to different markets and different clients.
When you are investigating your new potential MLM business opportunity, it is your responsibility to understand who the parent company is, and what role they will play in you building your MLM business. You will also want to know what roles and responsibilities you will have in the eyes of the parent company. These types of questions can be easily answered by the individual who is providing you with the information on the MLM opportunity.
When you are looking at a MLM opportunity that is categorized as a “start-up opportunity”, it may more difficult to get a clear picture of who the parent company. You may be told that since this opportunity is so new, the parent company does not have any track record or history.
If this is the case there are one of two things that you can do. The first that you will have to do is look even closer at the leadership that is involved with your new potential MLM opportunity. Look to see what their track record is, and do not just look at the size of cheques they were able to create, look to see how long they were with their previous opportunity. If the leadership has a tendency of being opportunity jumpers, there is a very good chance that they will do the same here.
The second thing that you can do if you are not given the information and answers that you want that will make you feel comfortable about the “start-up” company is, . . . walk away! If they will are not going to be forthcoming with information before you start, there is a very good chance that the same will happen even after you start.
The Products of the Business Opportunity
Of any of the four basic parts of an MLM business opportunity, that always gets the most attention is the products or services. This initial attention-reaction to the products in many cases causes people to lose sight of what they are looking for. They are looking for an MLM business opportunity that will be lucrative for them and generate residual income.
Making a decision based solely on the products can be dangerous. Before explaining that statement, let’s understand how the products and/services of an MLM business opportunity shape the opportunity.
Every MLM opportunity must have at least one product or service that is offered for a price. If it doesn’t be very skeptical as it may be a pyramid scheme. Having said that, the MLM industry is exploding globally and for that reason, many new products are being launched with an MLM company.
The products must serve a need, and even better would be to satisfy a want. The more people that the product(s) or service(s) appeal to the better this will be for you the business owner. Getting back to the comment about making a quick decision based on the products is this. If you choose only something that appeals to you, you could potentially miss out on millions of potential customers because of something you do not like.
There are thousands of examples that can be used, but the simplest way to illustrate this is with wagon wheels. If you were a wagon wheel aficionado and wanted to start an MLM business that sold only wagon wheels, you most likely would have immense amounts of knowledge and passion about wagon wheels. You would know everything from the proper type of wood to use, to the best way to manufacture the wagon wheel to how to maintain the wagon wheel for years of use. But there is a problem.
The majority of the world’s population doesn’t need or want wagon wheels anymore. Your MLM business would find it difficult to not only find new customers but finding new distributors to help build your MLM business would be next to impossible.
The point of this ridiculous example is that the products or services will have to appeal to the masses and have someplace in the market. They may not appeal to everyone, and you have to remember one of those people maybe you.
The Compensation Plan
If the products or services get the most attention, the compensation plan takes a close second. Every MLM business opportunity has some form of the compensation plan. This is how the distributors get paid for building their respective MLM businesses.
There are many variations to MLM compensation plans, but the four basic compensation plans are the Unilevel Compensation, Stair-Step Compensation Plan, Matrix Compensation Plan and Binary Compensation Plan. Engineered Lifestyles has the compensation plan basics broken down part by part and it is suggested to review this information.
Understanding the compensation plan will allow you understand how you will be paid, and the tasks that will be required from you the distributor to qualify for that pay. Do not be afraid to ask questions until you are clear. To many times people let their ego’s stop them from asking questions, then only find out after they get started they are not doing the tasks necessary to get paid.
Leadership Within the Business Opportunity
The leadership of the MLM opportunity can be broken down into two parts. The two parts of leadership is the leadership within the parent company of the MLM business opportunity and the leadership in the field. How these two groups coexist together, will determine how the smoothly the company and most importantly the MLM business opportunity runs for you.
Understanding the leadership that is involved, both on the parent company side and the field leadership side is very important to understand. It can be said that this is the most important part any the four basics to any MLM business opportunity.
If you are investigating a “start-up” MLM opportunity, look to see who the master distributor is. Understand what their track record is as this will play a role in the MLM business opportunity. There are many leaders who are successful in building MLM businesses, but they are also “opportunity jumpers”.
They are brought in to start a new MLM business opportunity, than once it is off the ground and running, they are off to the next opportunity. While there is always some leadership overturn, understand that it can cause issues within your organization as well as MLM opportunity. People can perceive the master distributor leaving as a sign of things to come, and that fear can implode an organization.
If you are investigating an established MLM business opportunity, ask how long the leaders have been with this MLM opportunity. What have they been able to accomplish in that time and how are they expanding the business? Three very important questions that will paint the picture of the kind of leadership that you can expect to have.
More Information on MLM Business Opportunity Basics
Investigating any MLM business opportunity can be confusing and difficult. Being informed allows you to get to the basics properly compare MLM business opportunities. The bottom line is that you need to feel comfortable with the MLM business opportunity that you choose.
Personal growth and professional growth come when you step outside of your comfort zone. You should not have to feel uncomfortable with the MLM business opportunity that you are building.
Engineered Lifestyles is here to help you. Contact us today to speak with one of our Master Mentors to discuss your choices in the MLM industry and opportunities that have been proven to be successful year after year. Complete the form on this page or go to our Contact Us section and tell us what you are looking for.
*Examples in these materials are not to be interpreted as a promise or guarantee of earnings. Earning potential is entirely dependant on the person using the products, ideas, techniques and efforts put forth on Engineered Lifestyles. For our full earnings disclaimer click here.