Achieving good sales is the ultimate target of any multi-level marketing organization. Many criteria, such as competitive pricing, attractive product, reaching out to the right audience and motivational advertising, are responsible for much of the success in this type of marketing, also referred to as direct marketing.
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There is however, one aspect in addition to all the others that attract "customers" to MLMs which is not present in most other businesses and that is appeal to the entrepreneurial trait in many of the individuals who embrace the MLM business venture.
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All other efforts will be futile if the correct audience or niche is not recognized and pursued. It is the major factor in getting abundant sales, because the right customers are not only invited to view or sample your product, they are presented with a plan under which they can promote and sell the product to earn "extra money" which is usually in addition to their secure salaried jobs so that the MLM invitation appears to be a "can't miss" undertaking to the right market.
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This niche market is where your sales will be made because in the majority of instances these customes are already sold on the product and will be happy to buy it. However, being able to purchase at wholesale like the "big boys" do and resell at a profit thereby fulfilling their consumer needs as well as generating revenue created the ideal circumstance under which their underlying dreams of ultimate success would be pursued and hopefully achieved.
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There are many success stories to be told about individuals who started their own business with a very small amount of money (investment) and made it to millionaire status. It is this kind of appeal to the individual, the little man, that is one of the main reasons this type of marketing gained popularity in the 1970s and 1980s, decades during which a number of shady characters parading as honest businessmen operating MLM companies perpetrated illegitimate activities as a result of which many consumers were cheated out of significant sums of money.
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These actions compelled the federal government and several state governments to enact laws to combat the scams that were taking place in the name of multi-level marketing. Fortunately the MLM industry survived that dark episode in its history and is thriving today with many success stories being told.
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Because of the MLM structure, small independent businesses (usually one person or a married couple) were no longer afraid to compete with large companies who produced and distributed products on a larger scale to serve larger markets.
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Larger companies were already structured to operate with an overhead and meet certain stock holder expectations whereas the MLMer worked out of his/her home and did not incur the proportionate level of expenses (salaries, corporate and business taxes, commercial tax, etc.) experienced by the larger company.
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Nor was the MLM company under any obligation to reimburse the independent contractor MLMer for expenses. The Multi-level marketing approach to doing business is a uniquely niche-oriented type of business that works for the MLM company as well as the independent-minded MLMer; a niche market made for that business type.
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Direct Sales Mistaken Perceptions