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The Most Well-Known Internet Business Model - The MLM Industry
| Guest post by: Michael E. Friedman |
Article Overview: There are some business models that lend themselves to the Internet and everything it has to offer, such as fast communication, instant gratification for purchases and the ability to reach out to a global audience. In a continuing series of articles, we will look at different types of Internet business models and marketing strategies.
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Free Download - Creating a Wordpress Blog for Your Internet Business Opportunity By Michael E. Friedman |
The Most Well-Known Internet Business Model - The MLM Industry
There are some business models that lend themselves to the
Internet and everything it has to offer, such as fast communication, instant
gratification for purchases and the ability to reach out to a global audience.
In a continuing series of articles, we will look at different types of Internet
business models and marketing strategies. The multi-level marketing or MLM
business model first gained popularity with MLM Industry business leaders such as Amway and Mary Kay
products. It is designed to pay commission on products sold. The person who
sold the product receives a commission, as does their sponsor. Products are
usually marketed directly to consumers and potential business partners.
The most common marketing method for the MLM business model
is word of mouth, known as viral marketing. With the popularity of the
Internet, this makes it relatively inexpensive to get started. The business
model becomes profitable when an individual sponsors several distributors to sell
the organization’s products and those distributors sponsor others. It’s all
about building relationships and networking to increase sales. Success depends
on the experience and motivation of the members. As a network grows, the team
leader focuses on helping their distributors succeed, rather than selling
product.
They have a vested interest and often spend a significant
amount of time with those they sponsored, otherwise known as the down line. The
leaders help increase sales by teaching different marketing methods to their
down line to keep them motivated. Building a network that sustains itself and
is continuously profitable is not fast. It takes time and patience. While the
Internet allowed the MLM business model to explode initially, it has also been
the harbinger of its downfall. People have more information at their fingertips
than ever before. Many are lured to the MLM indusrty by the prospect of fast, easy
profit,
They are willing to try something new for a few months, but
if they have not been amazingly successful, they are off to the next
opportunity. This does not allow the team leaders the time needed to a build
the relationships necessary for a stable revenue stream. Networks that have
been stable for years have suddenly dried up with the profit going with it.
Infinite possibilities have turned into an exercise in futility. Top tier
direct sales is replacing the MLM business model. This takes the focus off the
success of the down line and allows the members who are putting in the work to
increase their profit, regardless of how quickly their distributors come and
go.
Be Your Own Boss! ~FOR SERIOUS ENTREPRENEURS...SECRETS TO WEALTH
Why Be An Internet Business Entrepreneur?
Assessing a Business Model
What is the best Franchise?
Franchises...If it Ain't Broke...
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About the Author: Michael E. Friedman RSS for Michael E.'s articles - Visit Michael E.'s website
Michael E Friedman is a happily married father of 2 university students. He is an expert in network marketing and with the benefit of his experience his goal is to teach, coach and mentor other network marketers to achieve their desired success. Michael is now actively participating in Internet Education providing an integrated education and instructional platform that facilitates the quick and efficient creation of your own plug and play, Internet Marketing business For more information click here
Click here to visit Michael E.'s website   Keys to a Successful Network Marketing Business Social Networking and Attraction Marketing Mean Big Business Using Wordpress For Attraction Marketing Successful Entrepreneurs Key to MLM Businesses Why 3 Network Marketers Succeed and 97 Fail |
Related Forum Posts
Re: Franchise 'due diligence' checklist
- One of the things I focus on is this:
Does the Franchise fit the Business Model you are interested in?
Meaning, are you going to be doing what you want to do on a daily? For example, if you are a restaurant manager now and you hate your job because of the hours, then don't buy most food franchises. You have experience of course, so it is more comfortable, but you will basically be doing very similar duties and hours as you were before.
I always go through a series of questions, answers, more questions, more answers etc... to help my clients figure out what Business Model they are most interested in, I do this before even discussing a single name with them, they tell me what the business model is and then I match them up to that type of business, explain the entire business model as best I can and then and only then do we discuss the name of the company. Too many times people come to me wanting to own "abc" name brand franchise, when they don't even understand what type of business it really is and what they will be doing every day.
Seek Venture Capital & Funding
- Hello,
Greetings from India.
I am Seeking Venture Capital for Offshore Software Company Start-up. Need advise along with Business Model Sample.
I have a basic outline for an offshore company.
1. Technology - like Microsoft Dot Net, Java, LAMP
2. Talent Team - Found Good Technology Developers.
3. Where I can get the leads/potential customers - Leads have been identified who are willing to move forward offshore projects.
4. I do not have resources like funding. It is a very critical factor to me
Industries: Manufacturing, Real Estate, Retail, Insurance, Distribution & Logistics, Healthcare, Industry Associations and Software Product Development, Agricultural Industries and Etc.
Services: Offshore Software Development Company.
Offices to be located: Hyderabad, Andhra Pradesh, India and USA.
Products/Services/Applications in areas like POS & Billing, Sales & Distribution, Production Planning, Material Management, Inventory Control, Plant Maintenance, Purchasing, Accounting and Logistics. Dynamic Web Programming with Database Driven Content Management Systems, Online Stores for E-Commerce, B2B Solutions, Community Portals, Website Redesign and Development, Custom ERP with Enterprise Wide Functional Modules such as Marketing, CRM, Accounting, Inventory Control, Sales & Distribution, Production Planning, Purchase & Stores, Logistics and Supply Chain.
Seek your further questions and help.
Thank you,
Best Regards, Jayapratap.
My entry
- 1. The Best Business Books Ever: The 100 Most Influential Business Books You'll Never Have Time to Read
- this is a fascinating book about the history of Business theory, and I'd recommend it to anybody.
2. The Big Book of Small Business: You Don't Have to Run Your Business by the Seat of Your Pants, by Tom Gegax. Ditto.
3. PADI: The Business of Diving Book
Okay, so this book won't be of use to anyone who doesn't want to start a scuba store, but I did, and this book was of course invaluable to me in reaching that goal.
Re: Who inspired you to start?
- Hi Evan,
I was inspired by Mr. Bill Gates ever since I was a student learning Computers. But I was motivated for Internet as my Business, when I read his book "The Road Ahead" in 1995. It was in this book that Gates laid out his vision of an interconnected world built around the Internet.
Based on the premise that life will be transformed by the convergence of inexpensive computing and inexpensive communications, Gates drew from his experience at the center of the personal computer revolution to give insights on the growth, evolution and impact of technology.
I had always looked up to Bill Gates as my idol. When I read this book, it made me more focussed on Microsoft and Internet, The Internet was one of the upcoming things in this time. So I took over to the Internet as my primary business.
Regards,
Re: Fill in the blank: The best decision I ever made with my bus
- Focusing on my Internet Marketing Business
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