Multi Level Marketing Business vs. Traditional Business... Where is the Greatest Profit and Least Risk?
At some point in life, most people are exposed to a multi level marketing business. These are also referred to as network marketing.
Whether it comes from job and pension uncertainties, downsizing, the desire to be your own boss, or from being on someone’s “prospect list”, you will learn about multi level marketing. Unfortunately, due to the level of hype and some unscrupulous people, it is difficult to get accurate, unbiased information about multi level marketing. What follows will give you clarity and the information you need to make wise choices. If you just arrived at this site on this page, welcome to Financial Freedom Trail. I’m Paul Myers, one of the main contributors to this project. Our purpose is somewhat similar the Simmons Mattress Company who says, ” Our goal is to help you sleep well at night so you can work on your dreams during the day” We want to give you hope, plans, and financial security so you won’t lie awake at night worrying. We do that by giving you knowledge, skills, tools, systems, and education, to manage your money wisely and attain your dreams. Be sure to check our
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and other parts of this site to see all the ways we can help you achieve financial freedom- making more money, spending less, elimination debt, and more. Since many people seeking to make more money consider multi level marketing, this section is designed to give you greater understanding of the multi level marketing business model.
Traditional vs. Multi Level Marketing Business – Start-up and Risks
A. Traditional Business Model...
In this example, we will consider a cell phone business.The traditional business model means that you will likely set up a physical, bricks and mortar store. That means, before you can even open the doors to let in the first customer, you must invest money in: - Franchise/Authorized Dealer fees
- Lease
- Store build-out
- Inventory
- Computer system, cash registers
- Utilities
- Employees
To open a basic cell phone dealership, you could easily spend several hundred thousand dollars before you sell a single phone. That’s a lot of overhead to cover before you see a profit. It’s no wonder so many new business are unprofitable for several years and ultimately fail. There is a high level of risk. If this business fails, you are out – big time. You signed a lease, still own you inventory, and if you got a loan to get started, you still have to pay the bank whether or not you have any cash flow. Then there it your time investment. You will have a sign on the door stating when you will be open- and you need to be there for every minute, every day that you say the store will be open. You will become enslaved to those hours, and it will be very difficult to ever get away. How do you make money in this type of wireless business? Just two ways, as you read on, you will see how limiting these ways are…
- You make any mark-up on the hard goods in your store. The inventory that you purchased can be sold for a profit.
- The cellular service providers that you are a dealer for will also give you a bonus of up to $50 if and only if you get a customer to sign a 2 year service contract.
Now, do you see why there is so much pressure and incentives to get people to sign lengthy service contracts? But, (and this is a huge factor) you will make absolutely nothing from the monthly service that the customer uses. That’s’ where the real money is and the cell phone company gets to keep all that.
B. Multi Level Marketing Business Model for Cell Phones...
When contrasting the start-up expenses to a traditional business, you’ll see where multi level marketing has huge advantages.Most companies charge a few hundred dollars to begin as and authorized seller, or associate. While that is a bargain when you contrast it to traditional costs, some people still balk at the fee. These costs exist for a variety of factors : The multi level marketing company: - Provides your web site
- Pays for the inventory to stock the online store
- Takes the orders
- Ships the phones
- Handles the activation
- Provides live customer support
- Does the billing
- Sends out commission checks to the distributors
The only job of the associate is to send people to their online store. The multi level marketing company handles all the other headaches of running a business. How would you get paid? Like the traditional business authorized dealers, you could earn a commission for acquiring customers. The best part is that you could also get paid some of what all the regular, big cell phone companies keep for themselves… You could receive ongoing commissions from the cellular service, month after month, year after year, as long as the customers used the service. Even the Verizon, Cingular, Sprint, you name it authorize dealers don’t get any of that income. This is true
residual income.
Then there is the multi level aspect that makes this even more profitable… The nature of multi level marketing business is that if you introduce others to the business, you can receive in come form their customers too, and so on through multiple levels. Again, that is not possible in any traditional business Your time. Where the traditional business owner must have his store open during the long, posted hours, the online dealer doesn’t have any such constraints. An online store is open continuously, no matter what the owner is doing or where he is. Your risk. If you fail or quit in a multi level marketing business, you will be out some time and some money, but it is minuscule compared to a traditional business.
This Cell Phone Multi Level Marketing Business I Described is Not a Hypothetical Example…
It really does exist.I have first-hand knowledge of this. That’s because the company was founded by close friends, mentors, and business associates of mine. I consulted with them throughout the formation and launch years of the company. If I could show you how to get started with your own wireless business, would you be interested in knowing more about it?
If so, click here.
Resources to Help You in Any Multi Level Marketing Business
#1 Recommendation (and Free) In order to get the most out of your multi level marketing business and avoid failure, I highly recommend you go and check out this FREE ebook called 'The 7 Great Lies Of Network Marketing.' In it you'll discover some of the biggest myths that cause the vast majority of mlmers to lose money and waste years of effort. Just click here. #2 Recommendation (Not Free, but priceless) If you'd like to learn how to attract pre-qualified leads to you... rather than chasing people down... I highly recommend checking out the break-through new ebook - 'The Renegade Network Marketer.' You'll learn some of the guarded secrets of the mlm industry that were previously only enjoyed by the top 3% of all earners. Just click here. #3 Recommendation This is another secret weapon used by successful home business owners. Before I discovered this, I spent countless hours and dollars unnecessarily.
Click here for some free information and downloads.
Click here to read some multi level marketing success case studies using this tool.
Multi Level Marketing Business Assessment – All Rights Reserved

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