Wednesday, February 18, 2009

What is Multi-Level Marketing?

I'm sure that everyone reading this article has heard of McDonalds. It is a hamburger franchise that was started by Ray Kroc in the 1950's. This "franchise" was the precursor to "multi-level marketing.

Ray Kroc opened numerous restaurants throughout the world called "franchising". A franchise was someone that purchased a restaurant from him, and was then taught to "duplicate" the efforts of Ray Kroc and what his restaurants represented.

Ray paid these people handsomely for running the businesses for him, but in fact, these people actually "owned" the businesses he gave them to run. Ray Kroc simply took a small percentage of the income produced by these "franchises" and gave the rest of the income to the "owners". He even went out of his way to train them on how to run a business. When that business was trained, he opened another restaurant and did the same with them.

He then continued to duplicate his efforts around the world, which popularly became known as "franchising". After opening numerous restaurants, small amounts of income from all of these restaurants produced a huge income for Ray Kroc.

How does Internet marketing or "multi-level" marketing relate to this? Well. In the case of Ray Kroc, only he was allowed to expand his network. In multi-level marketing, individual business owners can expand their own network. This is exactly what happens in today's "Internet Marketing" boom!

In order to make more income; you must be able to expand your business opportunity and /or products to many locations around the world. Franchising and Internet Marketing are your two best bets. Both work well, and both are highly recommended. If you have lots of capital, go with franchising, but if not, look seriously into Network Marketing. They are your two best bets for success.

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Christopher Keenan

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