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MLM
What's it All
About?
Multi- Level Marketing is not
Pyramid Selling.
On the other hand, it's
more Selling than Marketing.
What Benefits:
MLM
or Direct Selling is a very inexpensive way to try yourself at
Selling/Marketing. Unlike the illegal Pyramid selling you are not asked to
buy a truck load of Product and left to your own devises to move it
profitably.
The
Cost:
The cost of
entry is usually about $200 and for this you are introduced to your
Leadership and the MLM Products. It is presumed you will buy (at discount)
the Products for your own personal use, and if satisfied, introduce them to
your friends and neighbors - who in turn etc. etc.
Friends
Do or Die:
Many people
take up the crusade to become wealthy through their friends and neighbors
and attend mini - seminars at minimal cost to hear motivational speakers rev
everyone up with a vision of the good life. Its all good clean fun and out
of the many thousands who get revved up there are a lot of Crusaders who
make it - and make a lot of money.
Moving
the Product:
The object is two
fold. One is to move the Product and the other is to move People into a
NetWork to move the Product. In doing the former you make a profit on a
Product sold by you.
Net
Working:
In the latter, you make a profit
from your own established network People selling to/for themselves and
for you.
Learning
Phase:
In the learning
phase of going into your own Small Family Business it could be to your
advantage to consider some form of MLM just to have an economical Product to
cut your teeth on. The only way you can learn to sell is to have a go.
Unless you are a potential con-man you have to have something to sell that
can be delivered - and not have someone knocking on your door with a please
explain.
NB. Selling is you going to the customer, whereas Marketing is any way to
have the customer come to you.
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Leadership:
Is another word
for the people who talked you into MLM in the first place. It is their
function to help you to become a better seller in their network - both of
the Product and their Network. Should you recruit more sellers you will
become a Leader in turn and consequently learn Management skills.
In
Business:
At this point, leading your own Network, you
might consider yourself to be in Business. Unfortunately this may not be
so for Tax purposes. There is usually a cut off point were Networkers are
considered "in Business" and able to TaxPlan while others are
considered only to have a "Hobbie" and not able to TaxPlan.
Check with the Australian Tax Office on TaxPlanning
at which level TP applies.
Time
Factor:
It could take a considerable amount of time
to be "in Business" through MLM/Direct Selling for Tax
Effectiveness when in other ways "Business" can be immediate for
TaxPlanning. Ring the ATO with any question
on a MLM or Direct Selling venture to find out if and when you can start
to TaxPlan as there is up to $100,000 or more Tax Variation involved.
License:
In
some MLM operations your "License" would preclude you from
selling anything other than the MLM Product and your personally recruited
Network could possibly be the "Intellectual Property" of the MLM
Organization.
Never
the less this is a sure way of learning the Hoops.
At the Gold Coast or Wanaka Seminars we endeavour to
introduce those, who wish to be, to Direct Selling or MLM Marketers.
It seems
feasible that this avenue of income production could be a winner for
Croquet Clubs or its members to raise funds for Sponsorships, competition
or Club House/Lawn enhancement.
Or to raise funds for Charity.
Consider having the Products of various MLMs on display on Gala Days and
advertise the fact.
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