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2. Building Down lines In MLM
from:In order to be truly successful in any MLM campaign it is important to have a huge down line. In order to understand the importance of a great down line and that too one which is made of performers who can bring in results, we must begin to understand how the technique of Multi Level Marketing, or MLM as we know it, works.
Multi Level Marketing is not about marketing the product or service at various market levels or market segments in other words. It is about creating multiple levels of marketing affiliates in order to reach a vast majority of people who consist of the particular market segment the product market is targeted at. It works like this. One man at the top of the MLM tree has a product to sell and he decides to offer an incentive to people to market the product for him. He succeeds in getting ten people under himself to sell his product. This is how his down line starts. These ten people are his first level and the second level in the MLM tree.
Let us say that each of these ten people in turn get five people each to market the product for them. This makes for fifty people working on the first level and they constitute the second level. This will get the top guy sixty people under him while each of the ten people have five people under them. The man at the top will earn from each of the sixty people under him while each of the ten people in his first level will earn from their sales plus a commission from the sales of each of his down line. If each person in the second level manages to get five or more people in their down line the top guys down line keeps growing and so do their profits. It is the people at the bottom that will ultimately earn very little.
It is important to build a down line in any MLM program. As earning from ones sales may not make much of a profit. It is equally important to pick and choose your down line carefully. Building a down line of people interested in the product and who can see a future in the MLM program are the ones who will rake in the profits. The people consisting of the bottom of the MLM down line will keep dropping off and new ones will be needed to replace them. These will be very few in number and depending on the up line’s capabilities of placing people in the weak sections of the down line the MLM will reap great benefits in a very short while.
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