If I could sum up the MLM concept in four easy steps, here is what they would be:

• You sponsor B, C, D for distributing your products
• B, C and D in turn sponsor three more distributors, we call them “downlines”
• Each downline is instructed to either sell or consume the products
• When this sponsoring pattern continues, say, ten times, i.e., there could be 11 levels in this human chain. Eventually you would have 88,572 marketing executives (oops downlines) working for you!

Imagine the impact of this teamwork on your bottomline! Even if B, C, D are finally able to consume or sell just $1,000 worth of products, you would still have an $89 million marketing organization!

With MLM you could truly be on the gravy train!

Tell me, which other business model can pay so good?

And, all this while, ACB and D are sitting at home, following their independent time-table, not feeling the need to respond to the unfair demands of a cranky boss. In fact, each is his own boss, unanswerable to anybody else.

Their socializing time has increased --- in fact; it was never better --- as they hobnob with more friends, relatives and acquaintances.

So, now you know the secret behind the long, happy and carefree life of an MLM executive!

Simple model, amazing results!

Think of Amway, Avon or hundred of other MLM companies that mushroomed in recent years, thriving on the simple formula that there is strength in numbers.

Call these value webs, where each human link profits not just by selling products but also (in fact more) through sponsoring other human links and in the process helping each another to grow their sales and profits!

Any wonder that MLM is today a money-spinning $16 billion industry in the U.S. selling everything from vitamin pills, cosmetics, magazines, pharmaceuticals, travel-agency credentials, to you name what!

MLM works because instead of demanding that you engage an army of sales people or maintain a chain of fancy, money-guzzling retail stores, you let a few enterprising people work for you, from their homes. Talk of flexi-timing!

In fact, what’s the need to hire and motivate disinterested salespersons, when your consumers are so happy with the quality of your products; they are willing to endorse these to other customers? Won’t that create a strong ripple effect and lay the foundations of a brand that is rock-solid and driven solely by people’s power, fuelled by their shared values and aspirations?

You can spot latent sales talent in ordinary men and women, nuture and groom this talent and almost overnight, they metamorphosize into self-employed, independent entrepreneurs!

And you don’t even have to go very far in scouting for this sales talent. You’ll discover them close to your home and hearth in your friends, relatives and acquaintances.

Take for instance the case of Amway Corp. The U.S-headquartered company that earns millions of dollars for its “star” distributors but pays less than $1,000 annually to its salespeople! (Source: Forbes, Dec 9, 1991 v148 n13 p244, The power of positive inspiration. (Amway Corp.) Paul Klebnikov)

Theoretically, you can make a fortune out of a simple MLM network, if you understand the basics of human psychology, which is what this mini-course is all about.

Revealed!!! Five critical steps to MLM network building

Let’s say, you have a very useful, very unique product to sell but don’t have the budget to incur high distribution costs. You think of trying the MLM model.

• You begin by compiling a list of every person (friend, relative, neighbor or business associate) you know and who can be personally contacted.

When you draw out this list, make sure that the person resides in the same city or town as you because very soon, you would need to meet this person one-on-one.

• When the preliminary list is drawn, go over it once again, more slowly this time, recalling every personality aspect of this person.

You will have to consider the following personality traits or the background of the person who you are trying to recruit as your downline:

1. Is he/she a well-informed, ambitious, upwardly mobile, happy-go-lucky extrovert-kind, who is instinctively good at making friends and influencing people?
2. Is she unhappy with her present paycheque and willing to invest some bit extra effort in making a small fortune?
3. Does she have financial responsibilities that she is finding difficult to cope with and could use your leg-up?
4. Is she the party-hopping, socialite-kind, who wins the trust and support of everybody she meets?
5. Is she quick on the uptake, risk-taking individual, who will stretch her limits for obtaining that wee-bit more in life?

If the answer to all or at least a few of these questions is a resounding “yes,” you have your “star” downline in this person.

But, even if she doesn’t have some of these sterling qualities, but is willing to learn and invest a little in an MLM proposition, this is the platform, where such qualities are easy to hone because MLM is not just about selling; it’s also about making friends and associates from all walks of life. It’s also about developing strong interpersonal skills and communication patterns. It’s like enrolling in an MBA programme for which you don’t have to pay anything extra.

• Once, you have zeroed in on your “high-potential” prospective downlines, it’s now time to invite them over to your house for high tea or dinner.

Break the ice by saying, “You know, Clare, I have this business proposition for you?” Don’t go over the top with tall promises of a “once-in-a-lifetime opportunity,” --- a mistake that most MLM practitioners commit. Over-selling can sound the death knoll for most MLM networks, so don’t even try

• What happens at the next step could be a little challenging. About nine out of ten people may mutter: “Thank you, but I am not interested.” Don’t be disheartened.

People, especially friends and relatives are inherently mistrustful of motives. They think a relative is always looking for a favor; an opportunity to promote his own interest.

However, fret not. Even if one out of ten say, “O.K Mike, let’s meet this weekend to hear you out,” grab this listener. He is the optimist, who has the courage to defy status quo. He/she can be an invaluable asset to your MLM network.

Ask any MLM veteran. The more experienced MLM distributor will always tell you upfront that "you will get some refusals" when approaching people; that nine out of ten people will show no interest at all and only one in 20 might eventually sign up but don’t let these statistics deter you from your purpose. The path to success is always laden with roadblocks. That’s no reason to quit. Press hard and learn to negotiate these roadblocks.

Even if one out of these 20 comes along on your path, the two of you can make a huge difference. You would have set the stage for a new enterprise. It would duplicate your efforts. Doubting Thomases don’t make successful entrepreneurs. Trusting Thomases do.

• Final step: After zeroing in on a few efficient downlines, make sure that your new associates understand all the product features.

It is very important, as an MLM network is as strong as the quality of your product. This must be impeccable.

The whole MLM business rests on the presumption that someone has used these products and is willing to endorse these to his close relatives and friends. No one would touch these products with a barge pole, if they were unsure or unconvinced of the quality. So make sure you and your downlines understand all the product features in order to be able to communicate these effectively to others in the MLM network.