Multi Level Sales
Note: This Multi Level Sales section should be read
in conjunction with the
Develop Profitable Home Based Business Section
Multi Level Sales for home
business development can work if home business entrepreneurs take a look at how
most big businesses operate.
Multi level sales is incorporated in the organizational and marketing structure for most big businesses.
All you have to do is look at the organization of any national chain store, food franchise, or sales organization to see that organized marketing, sales and distribution strategy is the reason behind their success.
When using the term Multi Level Sales that is also including the Multi Level Marketing and the Multi Level Distribution aspects of this system.
It is simply a duplicating, manageable, and organizational system at all levels that is used to successfully market, sale, and distribute a product, merchandise, or concept.
If you do business with chain stores, food franchises, or any auto or insurance sales company you’ll see that they all have similar floor layouts, procedures, and staff that operate in the same manner as their other branch stores that carry the same name.
The staff and cashiers of these stores represent the Multi Level Sales aspect of the system.
The advertisement and sales promotions put on by these businesses represent the Multi Level Marketing aspect part of the system.
And the stores, with products and merchandise on the shelves, serve as the Multi Level Distribution aspect with outlets throughout the city, region, or country.
Multi Level Sales is not just used in the one man or one woman home base ventures like Amway, Shaklee, or Avon. It’s bigger than just one individual recruiting or sponsoring another individual to help them sell and distribute a product or service.
Many people think that only the original sponsor, or person at the top of a multi level organization, is the one who gets paid - or the one who is reaping the benefits.
We know this is not true because all employees that work for these business organizations get a paycheck or some form of compensation.
Unfortunately, without seeing the bigger picture of how national corporations use the multi level system in their sales and marketing, and distribution structure, the small home base entrepreneur will sometimes have a negative outlook and opinion of this system.
A lot of unsuccessful sales individuals and critics have mistakenly called this method of sales a pyramid scheme, the real truth is that multi level sales is a perfectly legitimate system to use for any business that wants to make and earn money.
Some people still call Amway and other multi level structured companies a pyramid. With this type of marketing, sales and distribution system also comes opposition. Just like in life, you take the good along with the bad.
Due to their own disbelief and misunderstanding, many individuals still think that in multi level sales only the people at the top are the ones making money.
There is some truth to that. In a home base operation, you are acting as an independent business person. Your business growth is based on your own individual work effort.
It is because of this the person at the top of most multi - level groups has probably sponsored more people and distributed more products items through his or her network then a newer person who is at the bottom of the network lineage.
Unfortunately those people who still don’t want to understand this type of marketing system will continue to call it a pyramid. Pyramids are illegal.
What a pyramid is, as it relates to multi level sales, is when people at the bottom of a network of sales people are required to buy a certain amount of products or items in order to keep their membership status.
Or the recruiter may even push the sponsored person into reaching for high sales quotas in order to meet the recruiters' goal for themselves.
In those operations, you either don't know or don't have much say so in how much merchandise you feel that your multi level sales business is able to handle.
Consequently you may end up with excess stock, and out dated products or merchandise and the sponsoring company or individual you work under will not refund or take back the items.
Prior to getting into any multi level or direct sales situation you should make sure that you understand the compensation you get for your efforts.
Secondly, if you have to on a monthly basis keep purchasing merchandise or meet quotas that someone over you has set in order for you to maintain your status or membership, then you are probably in a pyramid operation.
In a nutshell that’s what a multi level sales pyramid scheme is. A promise of success, a requirement to buy a certain amount of merchandise or meet sales quotas, and a no refund system for unsold merchandise that you have been required to buy.
Remember, as an independent business owner, you should be able to control your own inventory volume as well as establish your own personal goals as they fit your personal needs.
If you are sponsored into the multi level sales network of B Crescent Services you do not have to buy or maintain product inventory of any kind.
Because we emphasize promoting and selling from your Amway online store, the only merchandise you purchase are items that you buy for your own personal use.
The ideal way to buy Amway products, when you become an IBO, is when you run out of another brand that you have been using, simply replace it with the Amway brand from your own IBO website store.
If you choose to do one on one, face to face selling to a consumer base, then you can use your own personal products as your sells and demonstration kit.
When doing direct selling you should always ask for payment in advance or at least a partial deposit.
When you pay your annual registration fee of $62.00 you keep your discount buying status, whether you are an active IBO who is selling merchandise or not.
If you choose to be active in the multi level sales of Amway products, the current trend of marketing and selling from your IBO website store is a solid guarantee that you would never have to stock up on merchandise.
The reason why, is because you simply order the items you personally need from your own store and your customers do the same thing at their own separate and individual expense.
Take a look at the B Crescent Services website store:
This is an example of what your
profitable home base biz store will look like. As an Independent
Business Owner Distributor these products are available to you at a
discount price of 10% to 25% off - based on the items purchased.
Editor’s Note: This section on Multi Level Sales is contributed
by B Crescent Services, ( an affiliate store of About Home Biz ).
B Crescent Services is an authorized IBO Amway product distributor and an affiliate marketer for over 50 national Amway affiliated Partner Stores.
The company of Amway will be used in explaining the concept of multi level sales, marketing, and distribution in this section.
Amway itself is a very successful 50 plus - year - old company that averages over $8 billion a year using the multi level sales, marketing, and distribution system.
In order to truly understand how multi level sales is actually a beneficial way for small and startup home base entrepreneurs to use, you must first understand the complete concept of marketing, sales, and distribution.
The importance for understanding and using the multi level marketing system, as presented on this About Home Biz site, is for you to be able to develop and grow a home base business at low cost and low risk.
For any company to get a product, service, or concept moved from the corporate home office board room to the end user consumer, a series of events take place. The most important aspect of these events, for our purpose here, is a process called marketing.
The word marketing itself means to move a product or service from provider to the consumer.
The process that Amway uses to move their products from their Ada, Michigan home office and manufacturing facility is called multi-level marketing or multi level sales.
In this section those two terms are interchangable. So no matter what multi level term is used, either one will be including the other components of this system, which are marketing, sales, and distribution as well.
While there have been false claims made about multi level sales, you can actually benefit and develop a home base business faster and more economically by using this type of system.
The word multi level - refers to the system of compensation given to those people involved in helping to move the product or service to the end user.
The word multi level also refers to the position one is at in a sales network lineage.
For example, setting up a multi level sales network goes something like this:
Most individuals are sponsored into someone else's sales network. So in that case you would be in the number 2 spot when you got sponsored.
If you sponsored someone into your sales network then that person would be in the number 2 level spot of your network sales lineage and you would be in the number one spot.
In multi level sales marketing, each person who is sponsoring someone else is considered to be at the head of their own sales network. Or, at the head of their own network.
That method could go on forever, however, it is best not to take any sales marketing team any further then 5 levels deep. The reason why, is because it becomes too difficult to train and develop more then 5 people at a time if they are from more then five different lineages.
Ideally, it would be nice if everyone could teach and train at the same level of competence. Realistically, however, that is not always the case. Therefore, if someone at a lower level in your lineage needs help it becomes your responsibility to help them.
That's what makes the multi level marketing method an excellent system for helping to develop a profitable home base business. Typically these types of businesses allow the participants to get into their own business at low cost and low risk.
Many of you reading this have participated in or seen multi level systems and plans before and maybe simply didn’t recognize it for what it is.
As stated earlier, the multi level system is no different than the way most corporations in America are set up.
You have a board of directors that send orders to executive officers, who send orders to upper management, who send orders to lower managers, who give orders to supervisors, who pass on the orders to the average worker. That is multi level also.
Multi level sales with Amway and other home base business opportunity companies is no different. You are distributing a concept, products, and services to others.
In the case of Amway you are operating as an Independent Business Owner (IBO) instead of someone who is taking orders from a manager or supervisor.
As an independent business owner (IBO) distributor you are moving Amways' concept, products, and merchandise to an end user consumer.
To give an example: If you are an IBO, your consumer base can consist of two types of customers. Those who are from the general public population and those who have been sponsored into the Amway business by you and who become IBOs themselves.
Where the multi level sales and multi level marketing system come into play is when you are moving Amway's concept, product, and merchandise to other IBO's who are instructed and trained to do the same thing as you.
In this type of system, all of the IBO's purchase the product items from Amway at the same reduced cost.
Just like in any other retail sales business, the individual IBOs get compensated when they make sales to consumers of the general public category.
In the Amway multi level sales system additional compensation is paid out to IBO's based on a volume and bonus point value system.
Each product item of Amway has a point value attached to it. So those IBOs who move or sale more items get paid bonus checks that are over and above the compensation from the general consumer base sale.
If you have sponsored other IBOs into your multi level network then you will benefit from the point value volume of that IBO and those other IBOs who they might have sponsored as well.
In the case of an IBO at the top of a multi level sales distributorship making more income then someone at the bottom, that will usually be correct.
There is nothing, however, stopping anyone at the bottom of that multi level sales system from developing a profitable home base business with Amway and out perform any of the IBOs or sponsors who were in the business before you.
The reason why, is because Amway rewards you on your own work effort. So if your effort of promoting, selling, sponsoring and distributing products is greater than the person who sponsored you into the multi level family, then your financial compensation will be greater.
That is the fairness of the multi level marketing system of Amway. It operates from the ground floor up.
The fact that major stores are closing down retail outlets and distributing their products directly online or thru home base business website stores is definitely multi level sales in every sense of the word.
There are three basic methods of getting products and services to the consumer: retailing, direct sales, and multi level sales.
Everyone knows about Retailing, where you simply go into the store and buy something. Again the salespeople and cashiers are all part of a multi level system, because there are managers above them. They all get paid.
The store that you went to is the distribution part of the multi level system, especially if it is part of a national chain. You have to have some place to store and pick up products and merchandise from.
The neon lights of the stores and repeated advertisement in newspapers, radio, television, internet and now social media is the multi level marketing aspect that sent you to a particular store in the first place.
You can not get away from the multi level sales system – it is everywhere.
Direct Sales is another method of selling. Typically it is where a sales person has come to you personally to sell insurance, home party cosmetics, home decor items, or possibly typical door to door merchandise items. This type of selling is fading out due to internet and social media.
It still however is part of the multi level network, because that salesperson markets, sells, and distribute some type of product or service for a business upline.
Multi Level Sales, which has been around for many years is similar to Direct Selling because it can have some of those same products and merchandise items.
In the case of most multi level home base ventures, you are usually working for yourself as an independent owner or distributor.
With today’s Amway, as an independent multi level sales individual you don’t even have to talk to customers directly because all Amway IBOs are given a website store to sell their products from.
Yes, you can still make face to face presentations to customers. It is a more personal way to build and expand your customer base and grow your business.
In most multi level systems you are actually using a network of friends, neighbors, and family through which to move or channel your products and services.
Friends, neighbors, and family. Does that sound familiar? Sounds like Facebook and other social media networks. As a matter of fact that’s one of the reasons why multi level sales ventures are expanding so rapidly in this technological world today.
With social media marketing today on the internet you can actually do multi level sales and marketing to someone whom you’ve never met. And you can do so in a low key and non-pressured manner to explain the concept of multi level and the business side of Amway or any other company.
Throughout this About Home Biz site, that is exactly what is taking place.
Now ask yourself, "have you felt pressured to buy anything?" You may feel a little curious, but that's ok. That's what you came here for. To get information.
B Crescent Services, who is the contributor of this information, may not know who is reading the content of these sections, but the process of multi level marketing is still taking place.
That's how simple doing a multi level sales home base business is today. Especially with a company like Amway, who has been around some 50 plus years.
How many times have you used a product or tried something and then recommended it to a friend, neighbor, or relative?
Today’s version of that on social media is when you see someone on Facebook make a favorable comment or show a fantastic picture and you give a thumbs up or a (Like).
The Amway business works the same way. You can passively post and recommend an Amway product that you have tried and “liked” to your Facebook family of friends.
Amway has many products to try and “like” in the following areas: home care, health and nutrition, beauty and cosmetic products, gifts, sport drinks, and water and air treatment systems.
Think about it – if you are on Facebook, Twitter, YouTube, or some other social media outlet, you are already using a multi level type system in communicating with friends or family.
What a wonderful method to use for developing a profitable home base business.
Again multi level sales is not going door to door and it is not necessary that you even have to talk to strangers. It is sharing your knowledge and experience of using a high quality product or service with your friends, neighbors, and family.
You can do that today by marketing your product sales business on the social media internet with and through your Amway business website store.
To elevate yourself beyond just having a small retail customer sales base, you need to bring in other people to help market, sell, and distribute products as well.
With Amway, you simply sponsor other people into your network and instruct them to do the same things that you are doing.
As stated earlier at the beginning of this section, that is exactly what big franchise corporations and sales organizations do. They duplicate their operations and all of their franchises are instructed to operate the same way in each of their separate facilities.
All of these franchises and sales organizations are no different then Amway. They all use some form of the multi level structure for marketing their products and therefore could be considered multi level sales organizations.
The big difference is that they market and sale out of building facilities and Amway operates using the independent business owner's direct sale or website store multi level marketing system.
Editors Note: Just so you will know, sponsors do not get paid commission on the $62.00 registration fee paid by new IBO's when they sign up with Amway.
If you get into the multi level sales business with Amway through the IBO company of B Crescent Services you can feel safe in knowing that all effort will be made in instructing you on how to grow your business and that is not done by stocking up on merchandise.
In the multi level marketing system of Amway you are instructed by B Crescent Services to purchase products when you run out of your other brand products.
You will acquire knowledge the
more you use various Amway products
and study the training material that is available to you. There is a lot of information available through the links provided.
With the Links that you’ve been exposed to on this About Home Biz site and the information you are getting from this Multi Level Sales section, the knowledge to do the Amway business can be obtained in a very short period of time.
With B Crescent Services and Amway, you are in a multi level sales business for yourself but not by yourself.
All IBOs that are sponsored by B Crescent Services are guided, trained, and supported by the Business Center, Resource Center and Educational Dept. of Amway.
These departments are the key to developing your home base business.
Watch the videos and view the sample courses. See how the Education Dept. delivers key information to help you grow a profitable home base business.