If you are considering starting any new business venture, or getting into MLM/Network Marketing in particular, you owe it to yourself to read this article — particularly if you are a newbie.

These days, most people are familiar with MLM/Network Marketing. However, most have never heard of Cooperative Marketing. Those that aren’t may find the content herein to be shocking and amazing, if not revelatory and potentially life-changing.

Cooperative Marketing has been around for a long time in the mainstream business world, but it is relatively new to the “home-based business” world. The term can mean many things, but in general it means that the retailer is receiving marketing assistance from the manufacturer, supplier or other large-scale enterprise. Such advertising “co-ops” are common in many brick-and-mortar industries, including the grocery, insurance and publishing businesses.

In the case of a home based business, it means the company you are working with is taking on a major burden that normally would fall to you: the marketing of the product. In fact, the better Cooperative Marketing companies do much more than this, including actual selling, distribution and customer service. To date, only a relative handful of companies use this business model (compared to the hundreds of MLMs out there).

More’s the pity, because a growing number of “work at home” authorities consider it the far superior business model — both for the companies in question and for their individual representatives.  Though the two business models have many similarities, they are more clearly defined by their differences, which are explored in this article.

MLM (MULTILEVEL MARKETING)/NETWORK MARKETING

As you probably know, the MLM/Network Marketing business is a huge industry. Many household names (Amway, Avon, Mary Kay, Herbalife, Shaklee, etc.) have had tremendous success using this business model, and many thousands of representatives (also called associates or distributors) have built profitable businesses in the industry. A smaller but still sizable number have built successful enough businesses to live very, very well indeed.

The MLM/Network Marketing business is based on the idea that reps are responsible for just about everything in their business, other than producing the product and handling commissions and bonuses. The company does these last chores, while the representative must undertake tasks which many find difficult and even onerous.

First, reps must find their own customers. Second, they must find new people to join their businesses with them. This is known as building a downline, and great success in the industry is predicated on having a large and thriving one. Specific business plans vary from company to company, but generally speaking you will not reach the top of the leader boards by selling alone. Third, reps may be required to order certain minimal levels of product every month, warehouse those products, distribute them, handle returns, etc.

While it is true many people have had great success in MLM/Network Marketing, it is also true that a far greater number have had little or no success. The plain truth is, not everyone is cut out to be an entrepreneur of this type and/or is willing to make the necessary commitments and sacrifices. It takes time, patience, money and lots of hard work. Beyond that, not everyone who gets started in the industry is suited to its business model, which requires a tremendous amount of social network building and maintenance, among other things.

MLM CHARACTERISTICS

• Company produces the product: reps must sell it
• Rep does the marketing: must find customers and sell to them
• Rep does the warehousing: must often buy large quantities of product, store and deliver them, and handle returns
• Rep does the customer service
• Rep does the continuity: must keep in frequent touch with customers to keep orders coming in
• Rep does the recruiting: must personally find and sponsor people for downline
• Rep does the training: often involves hand holding, pep talks and panic calls at 3 A.M.
• Size of business limited by ability to recruit and/or controls put in place by company

COOPERATIVE MARKETING

As stated, the home business version of the Cooperative Marketing business model is actually quite different from  MLM/Network Marketing, though there are surface similarities. This probably explains public misconceptions and confusion. For instance, in Cooperative Marketing companies, one can sell, sponsor and build a downline. The lingo and terms involved are, in many cases, identical. However, it is at this point where the similarities end, and the superiority of the business model begins to become clear.

In Cooperative Marketing, instead of the the majority of necessary business tasks falling on the shoulders of the representative, it is the company that handles them. Instead of buying products, investing in training programs (books and tapes), attending conferences and suchlike, the Cooperative Marketing rep simply buys lifetime profit sharing rights to existing customers. It is the company itself that does the marketing, acquires the customers, sells to them and services them. This is nothing less than the difference between starting a business that may or may not succeed, and having a profitable one.

In this regard, the representative is really more of a business partner whose funds help defray the costs of R&D, marketing and customer acquisition/service for the company. In return, the representative benefits from being in business with a successful company. In short, the company does all the “heavy lifting,” and the rep reaps a share of the rewards.

By being able to obtain profit sharing rights to existing customers, the rep’s job is enormously simplified (not to mention immeasurably improved). In fact, in some Cooperative Marketing companies, the lucky rep is not even required to actively build the business — though this is of course encouraged! This means that one does not have to sell, recruit or sponsor in order to succeed! By comparison to the poor overtaxed MLM/Network Marketing rep, the Cooperative Marketing rep can simply sit back, relax and take care of an existing, thriving business.

COOPERATIVE MARKETING CHARACTERISTICS

• Company produces the product, sells direct to consumers (reps can sell as well)
• Company does the marketing: finds and sells to customers via traditional means (print, TV, etc.)
• Company does the warehousing, shipping, delivery and handles returns
• Company does the customer service (though rep may help too)
• Company does the continuity: mail, email and even phone support (rep can too)
• Company does the “recruiting”: places new reps into existing reps businesses (!)
• Company does the training (though rep may help personally sponsored)
• Size of business only limited by profit sharing commitment over time

MLM vs. COOPERATIVE MARKETING: OTHER CONSIDERATIONS

The Cooperative Marketing business model recognizes that for the new representative — who most likely has no background in sales, recruiting or marketing — the best use of his or her time is in doing something that is easy, direct and natural.

Conversely, the MLM/Network Marketing business asks new reps to engage in a long, difficult process of learning new skills and doing things many (perhaps most) people do not like and are uncomfortable with. These include the “most obvious” ones: recruiting and selling. In addition to all that must be learned and mastered, the typical MLM/Network Marketing rep may be additionally burdened with product warehousing and delivery, attendance at meetings and training events, travel to same, additional ancillary costs for training and travel, and much more.

The Cooperative Marketing model asks new representatives to simply work with existing customers. It is a perfect fit, because this is the one thing that is not only difficult for big companies to do, but virtually impossible. At the same time, as mentioned before, it’s something most people can do with little or no training. The reps main job is simply building and maintaining personal relationships. And since the new rep is playing in a “warm market” (with existing happy customers) instead of in a cold one, there is considerably less stress and no brutal learning curve.

MLM vs. COOPERATIVE MARKETING: CONCLUSION

The Cooperative Marketing business model addresses all the aspects of MLM/Network Marketing that are so problematic for most people. By allowing the company to do what large companies do well, and allowing individuals to do what they are good at, a natural synergy occurs that is best of all possible worlds for all concerned (including the customers).

While MLM/Network Marketing reps are scrambling to learn all that they have to learn — at the very same time they are trying to prospect and sell as well — the Cooperative Marketing representative simply enjoys the benefits of partnering with a large, successful company. Instead of taking on the considerable financial and time burdens of building a business from scratch — not to mention all the associated risks — the Cooperative Marketing rep simply “piggybacks” on success and reaps the rewards.

This article has shown the glaring differences between MLM/Network Marketing and Cooperative Marketing. They are considerable, and the conclusion plain for all to see. Will Cooperative Marketing ultimately doom traditional MLM/Network Marketing? It is hard to say. Much depends on whether new companies are willing to adopt the business model. But one thing is absolutely sure — Cooperative Marketing is clearly the superior home business opportunity for all concerned.

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Are you considering going into the MLM/Network Marketing business? If so, you’re undoubtedly aware of the income potential and high levels of success that can be obtained. However, what you are probably unaware of are the many potential problems and downsides. Every business has them, of course, but the MLM/Network Marketing industry is one that very effectively conceals many of it’s problems from the public eye.

This MLM Success Tips article is intended for beginners, but veterans may well find it of value too. It is result of years of observation and personal experience, and consists of practical advice and useful concepts you may not have thought of. If you’re serious about your future in the MLM/Network Marketing business, it would be a wise to take heed.

MLM SUCCESS TIP #1: BEWARE THE HYPE

Before starting in any new MLM/Network Marketing opportunity (or starting any other business, for that matter), you  must be very careful about the company you choose to work with. This may seem like an obvious statement, but sadly, it is one very few excited newbies take to heart. If more did so, there would be far less aggravation, anger and resentment in the industry — and much more MLM success!

Despite the high-falutin’ language, hoopla and hype, not all MLM/Network Marketing companies are good. Another obvious statement? Maybe so. But if so, how is it that so many bad companies ensnare so many good people? It’s an MLM success tip worth stating plainly: beware the hype! In fact, it’s smart to ignore the hype entirely, at least to the extent this is possible.

The MLM/Network Marketing business is one in which companies — good, bad or otherwise — come and go with startling frequency. Even the best have been known to crash and burn like the rest. The industry has an unfortunate history of “shooting stars” that are hot one day and gone the next (sadly true of the business world in general, but generally without all the pre-launch hype). Don’t be fooled: even a great product by itself does not guarantee success, either for the company or the rep.

Your MLM success may hinge on this tip: before falling for the hype, try to put it all aside and focus your attention on making a good decision. Before you sign on the line, pay the application fee and find yourself “trapped” in a particular situation, you need to do your due diligence. Get yourself in a “fact finding” mindset today: avoid regret and near-certain failure later.

MLM SUCCESS TIP #2: LOOK LONG BEFORE YOU LEAP

MLM/Network Marketing is a business in which one is told one must simply work hard and “follow the plan” in order to succeed. You’re told it is up to you, and you alone. One of the (in)famous oft-heard quotes in the industry is: “If it is to be, it is up to me.”

While it is true that you must take action and do it consistently in order to achieve mlm success, there is far more to it than just your drive, determination and work ethic. This notion is not just a misconception, it is an outright distortion — if not an actual fib. Hard work alone — if it is not the right work or it is not done the right way — accomplishes little or even nothing.

The truth is that in MLM/Network Marketing, you must rely on others! And we’re not just talking about the downline you hope to build. No, we’re talking about the company you join, it’s management and staff, and your soon-to-be upline. You need help, training and support from them. Thus, they are important components of your business.

So, despite what we are so often told, mlm success does not depend entirely upon what one does alone. You have much to lose — as well as much to gain — based upon what these other people do. Therefore, it is very important to choose your MLM/Network Marketing company, sponsor, upline and team wisely.

This one choice may be the single most important one of any MLM/Network Marketing career. Yet it is, ironically, the one that is most often made hastily and with the least amount of forethought or planning. This can (and often does) led to disaster!

MLM SUCCESS TIP #3: FIND OUT THE FACTS

The starting point is to follow the very same practice you should use in any important business, life or financial decision: do your due diligence. Be as sure as humanly possible that the opportunity you are interested in is a good one. Make sure the leadership as well as the products are good. It’s easy to investigate people and companies with a simple Google search these days, so do it. Appending “review” and “scam” to your search can often turn up interesting results.

Sites like Scams.com, Ripoffreport.com and IMreportcard.com are also useful, though one must keep in mind that such sites frequently serve the disgruntled. The Better Business Bureau can provide an indication of whether an older company is acceptable, but keep in mind that the BBB is a paid membership organization that gives it’s members every possible benefit of the doubt — and none for non-members. Sad to say, this author (and many others) have found it is no more purely objective than the regular Internet rumor mill. Other online rating sites may also be of value, but be advised there might be a hidden quid pro quo to worry about.

Check the “MLM review” sites, but at the same time be wary of them. Many were created by representatives of one company or another trying to steer people into their own opportunities and away from those of the competition. They may not be very objective.

MLM SUCCESS TIP #4: FINAL DUE DILIGENCE

Do your due diligence and carefully consider your options before investing money and irreplaceable time in any opportunity. Don’t be swayed by your own excitement, and that of those trying to get you to join. Every MLM/Network Marketing opportunity looks good on the surface. Make sure you dig down a little — and dig up dirt, if necessary — before committing to anything.

However, even after you have decided that the opportunity is a good one, I recommend you follow the old edict: sleep on it. Even for a week, if necessary. Distance and time lets you think more rationally about the business and whether it is truly for you.

Decisions made in haste frequently end in regret. A week is not going to make or break your business. In fact, it will enhance it, because you will have had time to integrate the information you have learned about the company, products and opportunity. This will hold you in good stead should you get started.

If, after following these MLM success tips, you are still excited and positive about the mlm business opportunity in question, then you may have found a real winner. At this point, you have to “place your bet and take your chance.” Best of luck to you!

THE OLDY, MOLDY WAY OF MLM RECRUITING

By Karl “Big Kahuna” Steinmann

As many of you know from hard personal experience, mlm recruiting the traditional way is usually a slow, painful and even demoralizing process. For even the very best mlm recruiters, it’s always been a combination of skill, art and luck. You must deal with rejection, insult and even attack from people who do not want to be bothered by you or hear about your mlm business. You must constantly be on the look out for new prospects. Every waking moment is spent in either contemplation or action towards finding more mlm recruits. It’s no fun at all.

Achieving mlm success this way is a hard road, and these days, mlm recruiting has become very difficult using these old school methods. Marketers of all stripes know that people today are more resistant than ever to the pitch, and thus mlm recruiting is even harder than before — which is saying something!

However, with the advent of the internet mlm recruiting has become a science — for those in the know. The web provides all the tools and resources (many of which are free) to make mlm recruiting a whole lot easier, faster and — best of all — fun! Wouldn’t you like to have people chasing you to join you in your opportunity, instead of the other way around? As unbelievable as it may sound, you can. Millions of people are looking for guidance and a good mlm business to get into. By being a valuable resource to these people, you can show them how to achieve mlm success without burned shoe leather, lost weekends and and broken hearts.

THE NEW (AND BETTER WAY) OF MLM RECRUITING

Attraction marketing teaches us to become the hunted, to draw others to us because of our knowledge and expertise. It is the opposite approach to the hard-sell and dragging people (often kicking and screaming) to meetings. It is how most of the big online gurus have made their names, and increasingly, this method is being used by people of all backgrounds to carve out successful niches — mlm or otherswise — for themselves online. It works because you don’t do the selling and telling. There’s no song and dance. No convincing nor arm twisting. The prospect sells him or herself; all you have to do is close the deal.

Those who are succeeding in the mlm business today are doing it online using attraction marketing principals. By positioning yourself as an expert, mentor and friend, you can achieve remarkable mlm success without having to do any of the ugly, uncomfortable, unpleasant things you’ve had to do in the past.

So how does one become the hunted? The saying is simple, the doing a bit more complicated. See below. Still, I would argue that it’s a heck of a lot cheaper and easier (not to mention faster) to do mlm recruiting this way than to do it the “tried and true” (and brutal) way.

First, you must have your own website or blog (the latter is better for fast search engine results). Then follow these steps:

1. Post a relevant, original mlm business article to your site
2. Post a video about the article to YouTube (be sure to create your own Channel)
3. Have the video point to (link to) the article. Or, you can do the reverse by starting with the video and backing it up with the article
4. Bookmark your mlm business articles and videos on all the important bookmarking sites (Digg, Delicious, Mixx, etc.)
5. Notify the social networks (Twitter, Facebook, Linked-in, etc.) about your new mlm business content
6. Post versions of your mlm business articles to the important, high Page Rank article directories
7. Post your mlm business video to the other important video sites (Yahoo, DailyMotion, MetaCafe, etc.)
8. Make sure all article/video “copies” have links pointing back to your original mlm business article or video
9. Rinse and repeat for 60-120 days, creating at least one new piece of mlm business content per day

Sounds like a lot of work, doesn’t it? It is. But you have just been given the keys to the kingdom.

MLM RECRUITING ON OVERDRIVE

What you have just been shown is nothing less than the “secret” method of that has made many “unknowns” mlm success stories and superstars virtually overnight. It is a proven, solid, results-driven method. But it is is a lot of hard work. After all, if it were easy, everybody would be doing it, right? Is everybody achieving tremendous mlm success today? Does everyone have their mlm recruiting going on overdrive, recruiting 1, 2, 3 or more new associates everyday? No. They don’t. But they could, if they put this method into play and worked it seriously.

This mlm recruiting system has put many individuals at the top of the leader boards in their mlm business opportunities in record time. It has literally spun heads and left people breathless. In this author’s humble opinion, it is the best method for achieving mlm success. Period. It is even better than “buying” your way to the top with pay per click (which is very expensive and has many other drawbacks). It will put your mlm recruiting and mlm business on overdrive.

This simple system has been repeatedly shown to produce a tidal wave of traffic and leads in very short order. It has been proven to transform an mlm businesses in just a matter of weeks. You can have the same kind of results — to become the hunted, in other words — by just following this plan.

Obviously, there is far more to the nuts and bolts of this method than can be covered in this overview, and there are many tools, tricks and techniques for automating significant portions of the above that space prevents us from going into here. However, once you understand the concept, there is nothing stopping you from achieving the kind of mlm recruiting results you’ve always dreamed of, and having the mlm success you deserve.