Multilevel Marketing Concept - The #1 Most Important Concept to Understand in Multilevel Marketing

Multilevel marketing is a compensation model that pays a person on both the sale of products and services as well as the recruitment of other re-sellers of the product and service. It's a form of compensation, and allows a person to develop a residual income by developing a distribution channel.Many people get caught up in the "multi-level" part of the MLM, and focus on recruiting other resellers and distributors. They see the potential profit of developing a large, multi-level organization, and lose sight of the one thing that matters in such a venture.This one thing is marketing. Effective, targeted marketing is the deciding factor. Nothing happens if a networker doesn't know their marketing. They typically start with friends and family, and once that channel is drained, either quit or resort to approaching random people on the street. However, if they understood targeted marketing, then they wouldn't even resort to pitching friends and family in the first place.Targeted marketing eliminates the need to pitch friends, family, and acquaintances - because with it you are simply targeting people who already have a need for what you have. It also gives sustainability, because you are targeting the masses and using direct-response techniques that work to convey the benefits of what you have to offer.It also eliminates the need for "front-loading", a major issue with many MLM companies. The distributor is free to use their funds for activities that generate ROI instead of spending it on a garage full of products. Even though it is 1/3 of the name, many reps forget that marketing is the lynch-pin that determines success or failure in an opportunity.