Affiliate marketing combined with Network Marketing (mlm)
Warning: I know it's a long post but try to read it through. It may be something extra to add to your business plan.Let me start by saying that this is not a sales pitch. That is why I'm not including any links. Just sharing with you some information. Just read and maybe learn something new. If you want to know more just send me a pm and trust me that you want to do it before September. Right now it's U.S only, sorry guys.
For my latest experiment I've decided to combine affiliate marketing with network marketing or multi-level-marketing.
Last week I had a business meeting with one of these top distributors aka super affiliates from Wisconsin.
The meeting was basically me drilling him on what the scam was on this mlm stuff. I heard so many bad things about mlm that I wasn't about to fall for any kind of b.s such points and Amway and Quixtar and stuff like that.
About an hour into the meeting I heard something interesting that I really liked. If you build a strong downline... That got my attention. I thought residual income vs one time commissions and why not combine them both.
Info:
In MLM you are an independent distributor. You can sell the company's products for a commission payment. You can also sponsor other members into the "scheme". They become independent distributors also. They are now classed as your "downline", and as you sponsored them into the business, you also make a commission on their sales. They are one level below you in the "scheme"; the first level in your downline.
If they subsequently sponsor new members, then those new members become the second level in your downline. The downline can go several layers deep, and you earn a commission from every member in your downline. This is where the potential for high earnings lies in MLM.
I still wasn't convinced but definitely curious about that, I mean there are Multi Tier Affiliate programs. So what's the difference? How many tiers are offered. cj.com 2-tier, shareasale 2-tier, markethealth 2-tier, copeac 2-tier, the top 50 are mostly two-tier right?
I know mlm gets a lot of bad publicity, I did a lot of research on it before I finally decided to integrate it into my marketing. This particular program I'm in goes 50 levels + bonuses and a bunch of other stuff, that's a lot of residual commissions.
I don't like to put all my eggs in one basket plus the economy is going to hell and I'm not about to go stand in line at the unemployment office, it's just one more venture to fall back on if and when the internet kill switch goes on via Obama.
Let me know what you think guys. Sorry for the long post :) 99% of the MLM companies out there are pure shit, but they attract people who know how to butter your muffin and get you excited about it. They key is to look at their compensation plan, because even if they have passable or decent products, their compensation plans are set for disaster. Never touch a binary plan, waste of time... forced matrix puts a ceiling on your earnings, etc. Some companies promise the moon with their best comp plan in the industry, only to find out they have to readjust a couple years later because it's seriously flawed - screwing lots of the hard working pioneers out of big earnings, which turns their best people away from the company as they leave in frustration, and then the implosion happens and the company becomes another statistical number...
If you are looking to MLM as a long term vehicle, then a good rule of thumb is to never touch any MLM until it's already hit 5+ years, over 90% of them fail prior to that point. The myth of getting in on the "ground floor" will sucker thousands, but again it's pure bull. You are waaaay better off joining one that's proven to hang for 5+ yrs. Even then I've seen quite a few companies bite the dust after the 15+ year mark.
But you are on the right track, if you can ride the coat tails of a hot MLM product you can earn anywhere from 30%-50% commission just off one time sales. But the real money is in the residuals! So the key is to find a good quality consumable product that is reordered on a monthly basis, allowing you to build up a following of people re-ordering $50-$200 each month after month after month. The catch is, you have to be sneaky in marketing the product, some companies prohibit internet/billboards/newspapers/etc. They only want you to market belly to belly, or in person. If that's the case, and they catch you, they can terminate your distributorship agreement, I've seen this happen a lot too.
I think MLM is a great vehicle if you find the right variables. I've been able to taste a sliver of the high roller life MLM can afford, I lived in mansion for a couple years with a buddy who pulls down $150k/mo. Whenever we roll and he pulls out the amex black card people either recognize right away and kiss his butt, or they have never heard of it and think it's fake because it's so heavy and thick... I've been able to stay in some amazing $50 million homes, the lifestyle is flat out amazing. But no matter how hard I tried to make it work, I just didn't have the personality. IM suits me much better! I've made more money in 2 years doing IM than I have 10+ attempting MLM...
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