Multi level marketing has been a powerful source of income for thousands of entrepreneurs and also businesses as companies like AVON, Herbalife, Pre-Paid Legal, Amway Global and Exel Communications. Many of these companies have reached a billion dollars in sales and shown that legitimate MLM companies do exist.
Multi-level marketing (MLM), (also called network marketing) is a term that describes a marketing structure used by some companies as part of their overall marketing strategy.
The structure is designed to create a marketing and sales force by compensating promoters of company products not only for sales they personally generate, but also for the sales of other promoters they introduce to the company, creating a downline of distributors and a hierarchy of multiple levels of compensation in the form of a pyramid.
The products and company are usually marketed directly to consumers and potential business partners by means of relationship referrals and word of mouth marketing.
While we like what MLM companies have to offer we also wanted to look at some newer home based business models that offer residual based income and a more updated business model that uses the powerful growth of the Internet to grow.
One home based Internet business that uses cutting edge marketing tools to create sales is called www.recessionproofhomebiz.com. The business relies on websites and Internet marketing to reach entrepreneurs and uses an online system to sort and sift leads.
Here are some fundamental differences between the two programs.
1. Starting the Business - Creating a Client Base and Downline
Most home based business companies recruit members from weekly meetings. The goal is to find interested prospects and bring them to an "overview" meeting where they can get more information on the company and then make a decision as to wether they want to participate or not.
The "Recession Proof Home Based Internet Business" (www.recessionproofhomebiz.com)
Some MLM's are now folowing this model but many still require members to attend weekly meetings.
2. The Product Lines Being Sold
MLM companies offer a host pf products that they can sell comsumers but many of these product lines are saturated in the marketplace. As an example there are dozens of companies that sell vitamins, herbal remedies, lotions and nutritional supplements.
Even though many MLM's have great products to offer the fact is that there are tens of thousands of people also trying to sell the same types of products thus making it more difficult to find a clientel.
The Recession Proof Home Based Interent Business offers a very unique product in the marketplace that has little, if any competition.
3. The Cost of the Products and Commissions
Most multi level marketing companies offer products which cost somewhere between $25 to $350. The product commissions vary but for the most part the entrepreneur will need to sell hundred of units ( or have a downline of reps selling) to achieve an executive level income.
Since the Recession Proof Home Based Internet Business is run by people who used to be in the MLM industry, the products range in cost from $400 - $20,000, thus giving the entrepreneur the chance to make thousands off of just one sale. The commissions on sales range from 35% - 45% of sales.
4. Using the Internet for Sales and Growth
The Internet has helped all MLM companies achieve a wider range of growth however it is still a challenge to sell vitamins or other products when dozens of other companies and thousands more entrepreneurs all trying to sell the same type of products.
MLM's still have the reps making cold calls, calling paid leads and using other methods (including recruiting family members and friends) to help build and grow a business.
The Recession Proof Home Business relies 100% on the powerful growth of the Internet to do all the selling and recruiting. with 1.5 billion Internet users world wide there is not shortage of people to reach. The Internet based system does all the sifting and sorting of leads and makes sure that they are pre-qualified before the entrepreneur has to spend time calling them. This helps the home based business person spend more time on marketing and less time on the phone trying to convince prospects. The Recession Proof Home based Internet Business does not suggest to ever contact friends or family to sell into the business, but rather focus on entrepreneurs who are actively looking for a home based opportunity.
Summary:
Both multi level marketing companies and home based Internet business models offer a way for people to earn money working from home. Ultimately it is the choose of the home based business person to determine which model works best for them in their situation.
The Recession Proof Home Based Internet Business (www.recessionproofhomebiz.com)
was created by former MLM members who wanted to build a business model that eliminated cold calling and increased profit margins.
For a complete list of multi level marketing companies to choose from click
http://en.wikipedia.org/
For a free report on how to make money from home with a
home based Internet business visit:
http://oneyearplan.net/
