De-mystifying “MLMs” – Part 1 – What Are They?

Run into folks who get turned off when they hear about networking – or “MLM’s” as they are known? Ever wondered about them yourself? Have you ever wished for some practical answers to help put yours and their minds at ease and make your business more successful? Here goes!

It’s All about Distribution.

Did you know that there is hardly a product that any of us acquires that doesn’t use the network marketing principles, even though the companies behind the products don’t call themselves networks or multilevel?

Are you aware that virtually all products go through some form of multiple distribution channels and that the only real difference between multi-level marketing and conventional distribution is just a matter of whom you are going to pay for getting products through those channels and into the market?

It’s true. Only rarely are products sold directly from the factory to the end user. Most of what you see in stores has changed hands a number of times before they appear on the shelves.

For the role that each plays, every level (or layer) of distribution gets a slice of the action.

Commercially, we have different names for each of the handling parties, but they represent multiple levels of purchase and resale before they reach the consumer, and they all have to get paid to do what they do.

Since the reason to be in business is to make more than we spend, at every level an amount of profit is also added on to the cost of goods, and the combined amount now becomes the price the next level of distribution pays to acquire the products.

So, multiple steps (or multiple levels) mean multiple COSTS?

Absolutely. The manufacturer usually ships first to a party known as the “jobber”.  This starts the cycle of distribution costs.

From the jobber, products may go to a national or regional wholesaler, from there to a state wholesaler, from a state wholesaler to a local region wholesaler, from there to a local area wholesaler, perhaps then to a stocking distributor, and finally to a brick and mortar store — each one adding expenses and profit margins to the price they paid — all before the public ever has access to the product.

Every time a product changes hands, costs are added to the price the end-user will pay.

Obviously, this substantially drives up the costs of delivered goods, but, conventionally, there is no other way.

You see, there is a little known secret that goes with this handing off of products. Each level of distribution passes off goods to the next because of the associations and relationships each has with the other.  It’s often the “who do you know?” or the “good ol’ boy” situation. The jobber knows parties the manufacturer doesn’t know, but his parties will take the manufacturer’s goods. The next level has relationships that the jobber doesn’t have. And so it goes, even to the stores where display space on the shelves may be made available based upon other relationships (including some that are paid for).

By the time a product has passed through four, five, six, seven, or even more levels of distribution, whatever the charge cost was from the manufacture will be considerably higher by the time it reaches the store shelves. Why? Because of the “multi-level” nature of distribution that is employed in virtually every product we bring into our homes.

So how does conventional “multi-level-distribution” differ from  “multi-level-marketing”?

The life-changing LiveSmart 360 products (like the Manna 360™) deserve to reach a wide audience. Somehow, our products and the potential customers have to come into contact with each other. But we don’t have those convenient relationships the conventional distribution channels have with each other. And that’s where YOU come in.

Individuals and couples do not have the same kinds of overhead costs that distribution companies have and can operate much more profitably.

Our industry has taken all that is good from conventional distribution, and at each level we have removed the companies and corporations who normally would get paid to move products along the distribution chain and effectively replaced with them with individuals and couples called “representatives”, or “distributors”, or some other appropriate label. At LiveSmart 360, they are called “Members”, and if you are a Member, that means YOU.

By substituting real people (that’s YOU) for distribution companies (those big corporations), we are allowing YOU to step into the income stream and share in the profitability that accompanies the flow of goods to the market. And you get to do so with minimal risk or exposure on your part but with maximum potential for financial rewards for your efforts.

At LiveSmart 360, rather than the physical products changing hands, information about the products is shared.

How do Members step into the Income Stream?

Instead of the products’ being physically passed along, it is information about the products which gets passed along.  When the end users order the products they have heard about from you, they are able to receive goods shipped directly from LiveSmart 360.

The great thing is, you don’t have to take physical possession of the products or handle them in any way. You don’t even have to collect money for them if they’ve been ordered online! Since shipment is direct to the customer, this eliminates all manner of problems and costs. And delivery time is cut way down, as well.

LiveSmart 360 tracks the trail of information exchange and pays out commissions along the way as appropriate, just as if the actual product had changed multiple hands. And the cost savings realized by this method of distribution can be paid out along the channels (levels) of distribution to you as a Member as commissions and production bonuses.

You see, in Multi-Level Marketing, there’s no mystery at all. YOU are important to the distribution of our wonderfully beneficial products to the world. (In fact, YOU’RE the only plan we have.) And for helping us reach our goals of massive distribution to as many customers as possible, WE at LiveSmart 360 are willing to pay YOU as many ways as possible.

To be continued.
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Part 2 will discuss the vital role that you as a Member play and why LiveSmart 360 pays you so well to do it.