How an MLM Works
First, you need some kind of product. This is important. If you don’t have a product all you have is a pyramid scheme, and that’s illegal. So, you get a product. The product should either be something expensive, like a travel club membership, or something that has a recurring charge, like diet food sales. In general you will want the cheapest kind of product that can be distributed with minimal cost. Perhaps some kind of ebook would be ideal.
Once you have your product, you will need to decide on a structure. Most MLMs are based on a simple pyramid structure. Those who enter early on the top of the pyramid have a lot of people under them. Those who enter later have fewer people under them. Perhaps divide the people under a person into several teams. You should sort out the structure of your MLM before you publicize it.
Now you will have to set up a website. This is the most cost-effective means of promoting your business. Write a nice long sales letter and get accounts set up so you can start taking payments from the people who fall for your scheme. You will want to set up a forum for your employees/customers so they can arrange themselves into teams and exchange information on how to make the most money from your MLM. This is good for your business, because as the organization running the show you get a good cut out of every sale.
Now, you will want to really get the word out about your offering. How you do this is for your customers/employees to set up their own websites selling your high profit product. The more people you have trying to sell your product, the more money you will make selling your product. Everyone who buys your product becomes a sales person for your product, so potential growth is exponential. Be sure to capitalize on all the new websites your customers are going to set up by selling them hosting packages at an outrageous rate.
Once you have several hundred people actively promoting your ebook or travel club or diet food on the net, the money will start rolling in. You will have to keep track of your profits and of your payouts to your MLM customers so be sure to take some of your profits and hire a good accountant. As long as you pay your taxes and report anyone who makes more than $600 to the IRS you should be OK with the law. Soon you will have an empire of moneymaking websites pulling in a constant stream of cash for you and your family.
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william
September 25, 2008 at 3:00 pm