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How Does Multilevel Marketing Work
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"Are You Searching For a Simple Way To Make Money?"
http://multilevelmarketing.ronaldgabbypatterson.com
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I've been asked on many occasions on how does multi level marketing work? Is it a scam? Does it
actually work? Is it for me? Those are all excellent questions. There many businesses that take
advantage of the fact that you know other people. They know that if you recommend something
your friends are more than apt to follow through with your recommendation. This is the concept
behind multilevel marketing. You find something that you really enjoy like any product and you tell
your friends about. Unfortunately though there is a dark start to multilevel marketing. There have
been some unscrupulous individuals who have used it to their advantage and given multilevel
marketing a very bad name.
Fortunately the there's a lot of businesses that have excellent products and services that operate
under a multilevel marketing concept. The real trick is to find something that suits your personality.
I have a friend who looked at many different multilevel marketing businesses and eventually
settled on one in the health industry. He totally and thoroughly loves it. It fits his personality
perfectly. Because of that he's doing very well at it.
So the idea behind multi level marketing is that you tell your friends about some great thing. They
become interested enough that they decide to join you in your business. As soon as they join you
in your business, you make a small commission off of every sale that they make for themselves
and those they sell to as well. Now your friends will eventually tell their friends and their friends will
start to purchase the product as well. Here you have the possibility of making a commission on
those sales as well. Can you see the magic of a multilevel marketing business? Now where does
all the money come from? With the products have to be too expensive to be competitive with
products from non-multilevel marketing companies? In many cases the answer is no. Simply
because there is no advertising costs as advertising is strictly by word of mouth. This is where the
commissions come from most of the time. A second source of the commissions is the fact that the
company that supports the products are now the ones who manufacture and distribute the
products as well.
Big business is known for a long time that every hand touches the product needs to get a
commission from the product. If the multilevel marketing company manufactures and distributes
their own product they can reduce the cost of the product dramatically. Let me offer you a quick
example. Let's say you went to the store to pick up a new toy. That toy costs $10. Normally this
store would purchase the toy from a wholesaler for anywhere from $2-$5. Now it doesn't end
there. The wholesaler would purchase the toy from a supplier who would manufacture the toy.
Normally the wholesaler would not want to pay more than $1-$3 for that toy. The manufacturer or
supplier also needs to make profit. The manufacturer on a toy that would be sold to a wholesaler
for three dollars would want to make a profit of at least one dollar. Now you've pay $10 for the toy
and it could've been manufactured for only one dollar. In that $10 is $9 of profit.
2. So if you purchase a multilevel marketing product for $10, in most cases it could be anywhere
from $7-$9 in profits that could be distributed between the different multilevel marketers.
So I hope that I didn't get too complex and what I said makes sense. And I hope you now
understand how multilevel marketing truly works.
Frank has been an avid article writer and blogger for about two years. Check out his website
where he talks about table saw reviews and discusses technical details about the Makita table
saw.
Article Source:
http://EzineArticles.com/?expert=Frank_J_Thomas
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"Are You Searching For a Simple Way To Make Money?"
http://multilevelmarketing.ronaldgabbypatterson.com
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