How does multilevel marketing work?

Each distributor has two basic jobs: (1) to sell the company's products or services and (2) to recruit more distributors to sell the company's products or services.

Each new recruit a distributor brings into the organization is, in turn, encouraged to bring in his or her own recruits. The result is that an active distributor eventually develops a hierarchical substructure known as a downline that looks somewhat like an organization chart in a company with a lot of employees.

Each distributor gets sales commissions on his or her own direct product sales. He or she also makes a commission on the sales of the distributors in their downline. There are also likely to be performance bonuses available for reaching certain sales levels.
Since each distributor profits not only from his or her own sales but from sales of the downline, it is to the advantage of the distributor to guide and help those below to succeed.

What is multilevel marketing?

Multilevel marketing (MLM—also called network marketing) is a way of distributing and selling products and services through a chain of independent distributors rather than through traditional retail outlets.

MLM Prospecting Reality

MLM Prospecting Reality. It makes sense that if you are going to sell product or build a Downline, you must have folks to talk to, otherwise you will be in for a long drought of business.

Understand:: There is a Reason why the Last 3 Letters in Prospecting are ING! That means... ongoing... nonstop... fluid... unceasing... continuous... constant... engaged... get the Picture? Prospecting is a Continuous Process of finding people to Talk to about your business and your Products.

Now the Question is: Where do you start looking if you are new? Your sponsor should help you with that. But as a review: There are 4 kinds of Markets in your world:

1) HOT Market - People you are closest to... friends and family you talk to daily or at least a couple times a week... folks who will help you out no matter what.

2) WARM Market - People who you are close to, and who you care about, but maybe see them on a less frequent basis than your Hot Market.

3) LUKE-WARM Market - Professional contacts, Social contacts, People you know and occasionally see.....and referrals from folks who you know.

4) COLD Market - People you Don't know.