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MLM Business Model

MLM Business Model

Here is my breakdown of the MLM business model.  If you are in a network marketing business or MLM (Multi-Level-Marketing) you will find this article helpful.  I will be going over how the MLM business model works and the psychology behind it.  The reason I’m writing this is because when I first started doing Network Marketing, I was just blindly doing what my up-lines tell me and it wasn’t until I understood the MLM business model that I was able to recruit hundreds of people.

 MLM Business Model : Starting Off!

You have to understand that the life blood of any MLM business is the recruits.  The recruits will bring you more recruits and more sales.  So how does work? For the time being lets forget about your products.  There are hundreds if not thousands of successful MLM opportunities marketing all different products from Health, Energy to Financial Services and everything else in between.  When you are marketing and selling  its not the product that you are selling.

[content_box_yellow width=”75%”]All MLM business have the same product, and that product is THE DREAM. [/content_box_yellow]

In other words, don’t go sharing how wonderful your health juice is or how much better your product is than the rest.  People don’t really care about your product until they know how much you care about them.  To show that you care, you need to talk about how your business can help them achieve financial success, freedom from debt, be able to afford their dream vocation, buy their dream home, quit their day job.  These are the things people truly want.  This is the starting principle in RECRUITING.  Only when someone has bought the dream, will they want to buy your product.

MLM Business Model: The MLM Business opportunity presentation

The Science of human interaction comes into play in a big way at these meetings.  Most likely there will be loud exciting music playing.  Happy and excited people will be greeting each other.  The Emcee and Business Opportunity Presenters look super sharp.  The smell of money fills the room.  After its over, you still don’t quite know what it is or how money is made but you feel you might miss out if you don’t get involved.  This is the ending goal of the MLM Business model opportunity meetings.

Here’s the breakdown of the MLM Business Model opportunity meeting:

Music is proven to move people, that’s why there is music.  The atmosphere before the meeting begins must be exciting.  Anticipation has to be built up prior to the presentation in order for guests to pay attention.  The speakers must be the most dynamic, enthusiastic people you have.  They must also have had some success in the business and have a story of their own.  Facts tell and stories sell.

When someone new joins they do not know all the details nor do they have a story of their own that’s why it is crucial to borrow someone else’s story and let them be the one telling. The sole job of the new recruit is to invite.

When the MLM business model is ran perfectly, your chances of success in the business increases.  Even when the mlm business model is ran perfectly there is still another important principle to consider when it comes to building a big team.  This has to do with the Inviter or new recruit.

MLM business model : Recruiting

You may have already seen people who joins and immediately are able to bring in multiple signups their first week yet others struggle for months on end to get even 1 or 2 signups.  The principle behind this is that people are selfish by nature and initially only care about what’s in it for them.

[content_box_light_blue width=”75%”]Unless your prospects can see that there is value in YOU and that by joining YOU they will benefit greatly, they won’t join.[/content_box_light_blue]

Even if they like the business, they will consider joining someone else.  This is fact and it is self evident when you look at your own experiences.  The only exceptions are when someone is pitying you, you are a friend or family member and they want to make you feel happy so they signup anyways.  Typically these types of new signups don’t really do anything.

Mike Dillard does a great job teaching how you can become a great recruiter in his book, “Magnetic Sponsoring”  I highly recommend it.


MLM Business Model : Conclusion

This is the basic structure of the MLM Business Model.  On top of this is the compensation plan, the level tiers and bonuses.  Every MLM Business Model will have their own variations of the compensation plan but you already know the main goal is to have a huge team.  The bigger your team the more money you will make.  There are other things I have not mentioned here which are also important.  These things include, Motivation, Directing your Team, Science of the Big Events and Your own Personal Why.

I will be covering these topics in future articles…..so stay tuned.  Subscribe to my blog on the right if you haven’t done so to receive new blog updates.

To Your Business Success,


Daneng White Signature




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