GEM Lifestyle - What is Network Marketing / MLM ?

Network Marketing or Multi-level marketing (MLM) is a business model that combines franchising with direct marketing.

Billionaires Richard Branson, Donald Trump and Warren Buffet have all bought or created networking marketing companies since the turn of the 21st Century. This is because these giants of the business world recognise how efficient a business model network marketing is.

Network marketing businesses such as GEM Lifestyle, function by recruiting salespeople (also called Distributors, Agents, Independent Affiliates, Independent Business, Owners, Franchise Owners, Sales Consultants, Beauty Consultants, etc.) to sell a product /service and offer additional sales commissions based on the sales of people recruited into their downline, an organisation of people that includes direct recruits, recruits' recruits, etc.

This arrangement is similar to franchise arrangements where royalties are paid from the sales of individual franchise operations to the franchisor as well as to an area or region manager, but in some MLM programs, there can be seven or more levels of people receiving royalties from one person's sales.

Over $100 Billion worth of goods and services are distributed by over 30 million distributors in 120 countries around the world who are involved in network marketing (Mutli Level Marketing).

The network marketing industry had created many millionaire distributors who have completely transformed their lives within a short few years of becoming involved.

See a video of Robert Kiyosaki (12 mins) author of Rich Dad Poor Dad, explain the values of Rich People and how they think, compared to the values of poor people and how they think.

How do you choose the right Network Marketing / MLM company?

This has to be the $1 million dollar question - and there really is no simple answer. However there are certain things that you should look for when deciding were to put your effort, time and money?

Leading Network Marketers generally use this criteria for finding the right network marketing business :

• A product or service with mass market demand.

• A product or service that would genuinely add value to the customer.

• An emerging market place which is in its infancy.

• A product or service which is subscription based with auto ship by the company. So no inventory.

• A business in which even if your distributors leave the business, their customers will remain in your team business and you will continue to get paid a residual income for them.

• A product or service that can be marketed or promoted via the internet as well as off line.

• A well established Company with a strong management team.

• Excellent compensation plan to reward affiliates immediately and the ability to create a long term passive residual income.

• A strong Business System with Websites, Training and Support resources in place to help any new affiliate that joined the business to succeed if they put in the effort.

• As an example, review GEM Lifestyle as a solid platform for all the above criteria.

The Pyramid Selling Myth   

Sometimes people mistakenly confuse network marketing with a pyramid scheme.

Here we cover off the marketing structure of Blue Chip companies and see how GEM Lifestyle are looking to drive the business into Europe and the USA with this everyday marketing strategy.

Pyramid Selling - The Myth