Bloggy Business Today

Marketing strategy is a part of business plan in every organization. This is one of the most important in running a business. In our time, many are using MLM or Multi-level Marketing as their strategy.

MLM also called as network marketing is a way of marketing in which the product and company is promoted directly to the consumers. The purpose is to create sales force that will perform as a distributor and generate income not only by producing sales but also by referring the product/company to the other people. Members of a MLM are earning income by commission based of their total independent sales plus the agreed percentage from the sales commission of their downline (recruit members).

Here are the reasons why many companies are using MLM or Multi-level Marketing as their marketing strategy.

1. Low-cost ways to promote company

2. Less workers or regular employee, meaning there is no need to hire salespersons and pay regular salary and other privileges of a regular employee.

3. No need to pay for big television advertisement

4. Salesperson has the high possibility to generate sales because they are earning by commission, they are more eager to gain sales than the regular employee

5. Easy to recruit members, many persons are interested to join for the following reasons:

a. The members success will be based on individual’s effort

b. Personal freedom

c. They have enough time to spend with their family

d. An opportunity to earn unlimited income

MLM companies are escalating, even in the web; they call each member as an affiliate partner. The process is the same; the only difference is as an affiliate partner to an online company, the task is to market the product online, either by sending emails or by putting the ads banner of the merchant to your own website.

I have here 10 lists of Multi-level Marketing companies (not in-order). They are successful in the field and you might at interest to know their background.

1. Forever living products
2. Herbalife
3. Mary Kay
4. Avon Products
5. Cobra group
6. Freelife
7. Nu skin Enterprises
8. Usana Health sciences
9. Amway
10. Kleeneze

This is the first in an ongoing series about simplifying economic and investment principles for your everyday business needs.

One of the best ways to increase employee morale and attract high quality candidates to your company is by offering an employee benefit package. Though employee benefits vary from business to business, most packages include some combination of medical insurance (health, dental and vision) and a retirement plan. The most commonly used retirement plan is a 401(k) plan.

But what exactly is a 401(k) plan?

The phrase”401(k)” refers to the section of the IRS code from whence it originated. First available in 1981, a 401(k) plan typically offers an assortment of mutual fund investments that employees can use to earmark a portion of their income toward retirement.

It is a common misconception that a 401(k) plan is an investment itself. It is not. The 401(k) is the piggy bank you put your hard-earned money into. To use another analogy, the 401(k) is the aquarium, not the fish. It facilitates your ability to save on a regular basis.

There are many benefits to investing in a 401(k). First, the savings are done a pre-tax basis. This means that for tax purposes, you are reducing your adjustable gross income (AGI) by the amount of your contributions. This will allow you to reduce your tax liability year in and year out.

Second, many employers make a matching contribution up to a certain percentage. This is a powerful benefit as essentially your employer is adding “free money” to your retirement portfolio. After a certain number of years with a company, you are “vested” and the money is yours to keep should you change jobs.

Third, your retirement savings will grow tax deferred until you begin withdrawing your savings during retirement. For those of you who are in your 20s or 30s, your investments will grow for several years without triggering any tax consequences.

Lastly, one of the main benefits of a 401k is choice. The plans offered by many companies include conservative mutual fund choices (money markets and bond funds), moderate (blue-chip income stock funds) and more aggressive choices (small cap and international funds).

Do yourself and your future a favor in 2008. Take the time to speak with your Human Resources contact and learn about the power of your tax-deferred investment savings.

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