Many consumers think of multi-level marketing as direct sales – people selling directly to other people with no retail establishment involved. While this is true, network marketing also involves a recruiting component that is really what sets it apart. That’s where power multi-level marketing comes in. The goal is, of course, to profit and create residual income in order to improve the life of yourself and your loved ones.
In order to really understand the power of network marketing, you first need to understand the basic concept behind this type of business. The principle of network marketing is based on the fact that a lot of people each do a small part in the overall business.
One person’s goal is to sell the MLM’s product. So he/she, as the network marketer, creates a team of of people who all use the product and like it enough to recommend it to other people. Those people then use the product and tell even more people and so on and so forth. Another goal is to recruit other people into the business to sell the same product. So, one person recruits a few people who also recruit a few people, who then also recruit just a few people.
This is where power multi-level marketing comes in. It is because no one person needs to be superhuman and sell large quantities of products or recruit large numbers of people for their business and income to grow. Instead, each person only needs to do a little bit consistently and demonstrate it to the people that he/she recruits into the business. This is what makes people successful in their network marketing endeavors.
There is another element to MLM that is often completely overlooked. And that is the fact that the methods used for building a network marketing business can be partnered with a charitable or environmental cause. Individuals can be recruited into the network marketing business with the understanding that they can also commit a portion of the money they earn to the worthy cause (whatever it may be). In this way, everyone increases their own sense of personal achievement while they are contributing to the well-being of others, the environment and so forth.
The term which describes this process is “cause-related marketing”, and it was first used by American Express in 1983 to describe its campaign to raise money for the restoration of the Statue of Liberty. American Express made a one-cent donation to the Statue of Liberty every time someone used its charge card; the number of new cardholders soon grew by 45%, and card usage increased by 28%.
In a network marketing environment, individuals would join a network marketing company with the understanding that a percentage of their own profits would go to the team’s charity. That team would then focus on recruiting people who wanted to sell their network marketing product as well as to promote the determined cause.
This is true power multi-level marketing – the power of numbers and the power of altruism combined.