Multi-Level Marketing (MLM), Network Marketing, Referral Marketing

• MLM - 21st Century Business
• You can also be rewarded for other people's work (as any other bosses are)
• You don't need anything and you can do anything
• MLM has been operating in various forms for decades, is tried and tested
• the strongest free enterprise system in today's modern world (for everyone without any differences)
• one of many distribution models used by more and more businesses
  
• one of the business models that changes human destinies based on COOPERATION and not a competition
• MLM is about educating leaders. Network marketing is a factory for leaders.
• one of the few places where we can make money and time, too
• In network marketing, it is not a question of "doing business" but of putting people on their own feet.
• every single company does it, but most of them don't pay you for it. It is a distribution model that all people do without awareness and without reward.
• network marketing requires systematic work and responsibility - help your people succeed
• The goal in network marketing is to grow personally, educationally and increase your market price. Money comes automatically after that.

Why is Referral Marketing the 21st Century Business?

• the need for modern marketing - networking (network stores are more successful than stand-alone stores)
• 3 types of networks: Classic (a network of shops), dynamic network of retailers (active call-centers, door-to-door vendors), network marketing (MLM)
  
• Types of marketing: Single-level marketing (eg McDonald), Multi-level marketing.
• network marketing perspective - the need for additional income, desire to live better
• the attractiveness of network marketing - income growth
• network marketing functioning - duplication
• Duplication does not mean that we should be the same, but that we should do things right.
• Duplication is identification with a pattern. You need to be friendly to people and hard to rules.
• network marketing problem - working style
• People who perceive network marketing as a big thing work in a big style.

Real benefits of network marketing:

• improving communication skills
• improving organizational skills
  
• improving leadership skills
• increasing self-confidence
• open thinking
• improving presentation skills
• new people, new countries, new opportunities
• real friendships for life ...

Origin of MLM

- nobody knows exactly when MLM started

- early 20th century in the US - ban on the production and sale of alcohol. It was clear that people will always drink alcohol. Therefore, they invented a system to sell alcohol so that control organs does not find it out. Everyone was rewarded according to:

1. how much he sold himself
2. how many dealers did he get
3. how much they sold (as they teach them to sell)

The system was mainly funded by the sale of alcohol, to a lesser extent by the entry fees.

The ban was stopped a few years later because people found out that more alcohol was sold than before it was banned. So far, drugs have been sold this way.

Other MLM companies - eg. California vitamins - later renamed to Nutrilite. Nutrilite's leading distributors founded AMWAY in 1959 and have done a lot to legalize this kind of business.

Other examples of legal MLM companies: LYONESS, AVON Cosmetics, Herbalife, Mary Kay, Oriflame, and many others.

The MLM system is often confused with the fraudulent pyramid system, so I will briefly explain the difference.

Origin of the Pyramid:

- Charles PONZI - invented a pyramid (plane) based on postal orders. The reward was according to:

• how many "dealers" did he get
• how many sellers did dealers get

The system was financed solely from entry fees. There was no product being sold.

Shortly afterwards, Ponzi got into jail, and interestingly, he was still receiving money in prison. This fraud has been repeated many times in history and has therefore even legal MLM companies have been banned in several countries.