The Basics Of Multi Level Marketing System

Multilevel Marketing System is a type of business where sales representatives do a double duty: selling products and recruiting new sales representatives like them. The incentive for selling is the usual profit out of the sales.

On the other hand, recruiting additional sales personnel is sometimes more lucrative than the product selling itself. The recruiting salesman will get a commission out of the revenues of the sales people he recruited (usually called a “downline”).

The setup is repeated when these new recruits do their own recruitment of more sales people. The original recruiting sales guy will still get an additional overriding commission on the revenues generated by this second generation of sales people (still part of the “downline” of the original salesman-recruiter), albeit on a reduced scale.

MLM appeal

Also known as network marketing, direct selling and person-to-person marketing, multilevel marketing (MLM) is already an entrenched industry and one of the most lucrative in the world. (Some of the biggest corporations in the world are MLM companies, or companies who utilize the MLM sales concept.)

Multilevel marketing appeals to a wide variety of people (wives, mothers, students, laid-off workers, etc.) because the work can be done part-time and the schedule is really flexible.

They also attract people who are dissatisfied with their present work situation. A writer once called it ‘the least expensive, lowest risk, fastest path to achieving the American dream.’ He also called it the “core of the exploding E-home-based business’ segment of the economy.”


Aside from the relative independent quality of work efforts and time (consumer products are sold usually in customers’ homes), the multilevel company usually encourages the salesman to build and set up his own sales force.

The salesman can recruit, motivate, supply and train newcomers to sell the company’s products or services. Compensation is usually based on the sales efforts of the new army of salesmen, plus the originating salesman’s personal sales.


The bulk of the criticisms hurled against multilevel marketing stemmed from past pyramid schemes that used network marketing techniques. The illegal rip-offs had participants expect huge amounts of monetary returns from substantial initial investments while doing little work.

The people who started the scam were paid off by those who came and joined later. Soon, many participants were not paid at all.

Today, the complaints on MLM are mostly on being pressured to join parties where participants are coerced to buy products of questionable qualities, and being bombarded by proposals to join the downline.

MLM benefits

One of the biggest reasons people sign in to multilevel marketing is flexibility. Sales people may work only on part-time and set their own choices of working hours.

Research had shown that 90% of MLM sales representatives work less than 30 hours a week, and 50% even work less than 10 hours per week. Moreover, multilevel marketing businesses do not tie their sales people to long-term commitments.

Another basis for the appeal of multilevel marketing sales model is that it enables people to start their own business with only a modest investment. (The average investment is around $100.)

Like any other enterprise, going into the multilevel marketing system still needs the salesman’s mastery of retailing techniques, establishing goals, and having plans to execute them.

The Hard Truth About Direct Response Copywriting

Direct response copywriters tend to talk about direct response copywriting as though it’s magic or a miracle… like it could turn an otherwise uninterested person into a fiend just jonesin’ for your product or service.

Not true.

The copy isn’t the only factor here. Nor is it even the most important factor.

Here are some factors that are just as important as, if not more important than, the copy:

1) The List. Who are you sending that email or letter to? Who are these people? Have they bought a similar product before? A good list is probably the most important factor of all. Even mediocre copy will sell product to a relevant list. Superior copy sent to a superior list will certainly produce the best results, but a stellar list will trump stellar copy, all else being equal.

2) Passion. What’s the passion level for what you’re offering? Direct response copywriting works best on high-passion products and services, especially ones involving instant gratification. Can the product make people thin? Or relieve an ailment? Or inform them of something vital to their well-being? Or offer them an amazing business opportunity or way to make money? These are the kinds of passionate subjects that direct response copywriting works best with.

3) Frequency. It often takes multiple exposures to a new product or service to make an impact. Not to say that direct response copywriting can’t sell on the first go; it certainly can (and has)… but generally, frequency trumps reach. Assuming a good list, you want to increase the frequency as far as you can economically. Seth Godin compares marketing to planting seeds. Better to water 100 seeds five times than to water 500 seeds once. Wise advice.

4) The Mechanics. Consider something like having a call-to-action (CTA) “above the fold” (what’s first visible on a website or in an email… above the point where the audience would scroll). Having a powerful CTA is a big part of direct response copywriting in the first place–but make sure there’s one above the fold (for lead generation, at least). Or else a lot of your audience is going to miss it.

5) The Economics. Maybe a particular medium would be a great way to reach your audience… but that medium might be so expensive that it would put you out of business. Perhaps a particular audience would be great to sell to, but you can’t reach them in an economically viable way. The economics of your situation is going to dictate a lot of how you go about it.

Now when you have these factors already, the copy is the variable that will get you even better results. And it takes a good direct response copywriter to do it right and provide the edge you need.

Develop A Marketing And Marketing Communications Strategy And Plan For Small Or Midsized Companies

Planning for the year ahead is never an easy task. Lack of resources (people, time, budget), keeping up to date on what’s going on in your market, obtaining quality leads and improving brand awareness and reputation have become increasingly difficult for all organizations – for profit companies as well as nonprofits. This has become especially true among US CEO’s who are concerned with not just domestic but also international uncertainties.

Developing A Marketing And Marketing Communications Strategy Is Critical

This should be your priority. Without a strategy for a plan there are way too many opportunities to get off track and chew up your investment. Your ROI will suffer. Consider the following to focus your efforts when developing your strategy and plan:

1. Determining, understanding and verifying your target customers and prospects should be at the top of your agenda. To improve profitability and ROI you must know what your audience wants and needs, how they perceive your brand and how it stands up to competition.

Be sure to avoid industry and company “myths” and internal “opinions”. Employ primary and secondary research to understand your audience. With so much information available about companies and brands, it is truly the Age Of The Consumer and will be for a very long time.

2. Additionally, as part of your knowledge of your audience, determine the size and scope of various sub-segments that exist today and will tomorrow. For example, does your audience include women, or Asians, or Hispanics? If so, look at the dramatic growth of these segments of the populations and determine if your brand needs to pay particular attention to them.

Also, recognize that millennials (23% of the US population) are not a homogenous group. At the younger end (20 – 28 years), 40 percent t are currently living rent free with family, while at the older end (29 – 35 years), 43 percent have already purchased a home. With that in mind, how should your strategy differ if you’re targeting adults 55 years and older (21% of US population)?

3. Once you clearly understand your audience, develop your unique brand position. To do this, create a brand positioning statement. The statement is a succinct description of the core target audience to whom the brand is directed and a compelling picture of how you want your audience to view the brand. Sound simple? Take a few minutes and try to answer the four components of your positioning:

· The target audience, in very specific detail

· The category in which you complete and its relevance to customers

· The brand’s benefit and point of difference

· A reason for the customer to believe – the most compelling proof

All marketing and marketing communications should flow from this positioning, and it should be fully understood and embraced by all employees, sales reps, partners and management.

4. Improving brand awareness is very important but only the first step. You also need to create great customer experiences with each touch point of your brand. And that means creating brand advocacy at all levels of contact. Develop brand champions at every level of purchase and repurchase to improve ROI.

Be sure these influencers completely understand, believe and can articulate your brand premise. And provide them with the training and tools to convey their trust-worthiness in a believable manner.

Developing A Focused Marketing And Marketing Communications Plan And Budget

After the hard work of developing a meaningful strategy, recognize it’s equally important to develop a specific plan and budget. The following should be taken into consideration:

1. You must be media neutral and open minded in developing your plan and budget. It is extremely important to understand the difference between “efficiency” and “effectiveness”, and not get caught up with the latest trendy new tactic.

Regardless of the specific marketing tactic, or type of digital or traditional media, you’re evaluating, keep in mind that cost efficiency does not necessarily lead to effective results. Also, and most importantly, the best source of marketing communications leverage is the quality of the message, not the marketing tactic.

2. The scope and diversity of marketing and marketing communications tactics has grown faster than the ability to measure some of them. Marketers now are actually spending money without knowing how it impacts their profitability and ROI! Consider the variety of ways in which nearly $450 billion is expected to be spent in the US in 2018:

· Sales promotion ($83 billion), telemarketing ($60 billion), direct mail (($46 billion) and events ($40 billion) highlight projected 2018 US Marketing Services expenditures;

· The internet ($78 billion), television ($68 billion) and the combination of radio, newspapers and magazines ($47 billion) are projected to be at the top of the 2018 US Major Media spending categories.

Source: Zenith Total US Spending

And while it may surprise you, 90 percent of consumers (and 94 percent of millennials) still use coupons. The coupons come from a variety of on-line and traditional mediums, but mail is most popular. Why do marketers still use coupons? The simple answer is because they’re effective in guiding purchase. In developing your own plan and budget, determine and recognize the effectiveness of all marketing tactics, not just their efficiency.

ROI Focused Marketing And Marketing Communications Consultants

If you’re like most small and midsized companies, you and your team may not have the expertise or time to develop an ROI focused marketing and marketing communications strategy, plan or budget.

Even major global brands are seeking outside advisors. In my May article, I discussed the dramatic growth of management and accounting consulting practices (33% increase in US revenue) at the expense of traditional global advertising agencies (0.3% increase in US revenue). One reason for this 2017 growth of consultants is their focus – not on trends or what’s in the news – but on marketing and marketing communications effectiveness, profitably and ROI.

While you may not be able to afford the large global consultants, you should consider hiring a marketing and/or marketing communications consultant. The type of people you should hire should:

· Have a focus on ROI, with significant experience across industries, b2b and b2c brands, both large and small, as well as for profit and nonprofit organizations

· Be media neutral, apolitical, down to earth, be willing to be part of a team and “tell it like it is” so candor will flourish

· Have flexibility to bring in other professional specialists when and as needed so that overhead isn’t an ongoing expense

· Have strong convictions to measure what has been done and measure what will be done to improve ROI, perhaps including a marketing communications audit

In today’s challenging environment, a greater focus on strategy, planning and budgeting can go a long way toward leapfrogging competition and improving brand profitability. And the fresh eyes of a consultant can go a long way to building a meaningful future for your brand.