Thursday, January 24, 2013

The Low down on MLM programs

Alright so what is a MLM program?

Well lets start there and MLM program is a Multi Level Marketing system.  Now for you people that don't know that much about this that means that you have to fill in a downline Multi Levels done.

So that mean you refer one person or two people and then they refer one or two people and so on down the list.  And just for you people that do better with pictures.  Here it is in picture form.


So this is a MLM program in picture form.

How do you tell a good one from a bad one?

Well there are a few rules to follow or at least the ones that I use.  I like to ask myself a few questions and I will put this in bullet form so its easy to read.

  • What is it that they are selling?
  • Is the product worth what they are selling it for?
  • How much commission are they give you to sell it for them?
Now to expand on those a little bit.

What is that they are selling?

Well everyone know that for a company to make money they have to be selling something.  If they don't have anything to sell then nobody else is going to buy it.  Now there are lots of different forms of stuff to sell.
It could be a product, a service, information, Now there is a lot of different sub titles in those three areas but those are pretty much it for selling something.

Is the product worth what they are selling it for?

Now the reason this is so important is because if the product they are selling isn't worth the price they are selling it for.  The first thing that is going to happen is the company is going to disappear pretty fast and this is why.   Because if they are selling the product and want you to sell it and offer the MLM as a way to make your money back.  Where is the money that you are making coming from?  It comes from the people that you get to sign up.  So when you get to the bottom of the pile what are those people buying the product for they are buying it hoping to make money off it right.  Nobody is buying the product anymore they are buying the system but those at the bottom aren't going to be able to sell it after so many people are in.

So what happens will you made a pyramid to build it up right well now take out the bottom of that pyramid what do you think is going to happen.  Nobody wants the product for that price so the bottom people drop out the next level stops making money so they drop out and so on up the pyramid until there is nobody left and the company dies so the people at the top made money but they made it by taking money from someone  else.  Not an easy feeling to go to bed with every night unless you have no feelings.

Now most of these people that make money off of these kind of programs don't have feelings so I like to call them robots.

How much commission do they pay?


Now this one only comes into play if the first two questions can be answered as yes.  This is why because even if the company has a good product to sell that is worth the price they are charging then this one is a bit harder to explain.  

In all honesty the company still has to make money and they have to make more then what they are paying you because they have to pay people for customer service, server fees, hosting, domain fees, and other expanse I'm not going to bore you with those details.  So if they are pay 100% commissions or something close to that you might want to be careful.  Because what this means is that they still have to do the same thing that you are selling the product themselves to make the company money.  

But as the company grows then they have to make sure there are enough people that are using the product under them that aren't promoting the product so they are making enough to cover their cost and still turn a profit.  Lets face the facts no company is going to stay open or keep running if they aren't making some profit.

So a good commission level if your not sure and don't want to do all of the research to find out if there is anything worth promoting is about 65% if its much higher then that then you might want to check out some reviews, ask friends, someone else in Online marketing.  Just watch out for some stuff like that.

Well I hope this will get out there and help someone make a more informed decision about what programs to try.  If you want to check out a some good programs that are MLM look for the ones that you can get started for free so you can get into the system and see what they are all about before you have to pay for anything. 

Here is one that I have been using mainly to build up my traffic.  Check it out its free to get started just Click here for free and go through the training.

Thanks again 
Jerry N. Kramer
Skype: fundawg58 


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