What is an MLM? What is network marketing?

We receive a lot of questions about whether The AIM Companies and Team Beachbody are MLMs. The short answer is yes. But I like to spend a few minutes and give the long answer instead. There is a big difference between Network Marketing and a Pyramid Scheme. In a pyramid scheme (illegal and unethical) no one gets paid very much the lower you go, and the only real profiteer is at the top of the pyramid (the con artist). For some reason, the term MLM attained a bad connotation and I hope you’ll allow us to break it.

A BRIEF Intro to Multi-level Marketing

  • There are really only three basic methods of moving products:
    • Retailing
    • Direct Sales
    • Network Marketing (‘NWM’)
  • Network Marketing means moving a product or service from the manufacturer or provider to the consumer, using a system of compensation provided to those persons who are causing the product to move or the service to be provided. If you think about it, on a daily basis you utilize many of the same principles of an MLM. You try a product or service. You either like or dislike it. If you like it, you tell people about it. Those people then go and possibly purchase. The only difference between a structured network marketing program and what I just explained is that in an MLM you get what is equivalent to a referral fee — a commission or a bonus for sending that connection to make their purchase.
    • To make NWM work, the product does have to move or nobody gets paid. So the foundation to any successful program is in the products or services being offered: they must be great and have great potential to be referred.
    • Although not required to earn a great living with NWM, you could buy your products wholesale and sell those products at retail to make a profit
    • The key to building a large successful business is to create a balance between sponsoring and teaching NWM to other entrants, and build a customer base by retailing to your friends, neighbors, and relatives
    • There is but little entry fee to join a NWM program, because the success of the system evolves around “sponsoring”, “sharing”, “building relationships” and “helping others” – all of which can be done without much costs and by almost everyone.

Questions? Contact Us. Recommended reading: The 45 Second Presentation is a training manual for learning Network Marketing – and teaching it to someone else by use of “Napkin Presentations”. Intrigued?

TOP FEW Reasons to Start a Home-Based Business and Change Your Life Today!

  • Help eliminate debt
  • Spend more time with your family
  • Add to your retirement savings
  • Take a longer vacation
  • Help save for a rainy day
  • Pay off your mortgage quicker
  • Be a stay-at-home parent or allow your spouse to stay at home
  • Earn additional money to help you buy the car or home of your dreams
  • Enjoy valuable tax savings. You’re a business owner now!

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