What is Multilevel Marketing

Restored from the Empower Network archive (2011–2017), lightly edited to meet our current advertising standards. Views are the original author’s.

What is Multilevel Marketing

G’day everyone

I just wanted to put together something for those asking exactly what is  multilevel marketing

So here it is for you.

Multilevel marketing otherwise known as (MLM) is an online business structure where products are marketed directly to consumers by sales representatives known as distributors.

These distributors earn an income based on the amount of products they sell for their parent company, (Think Avon, Amway, Melaleuca, Mary Kay and tons of others) as well as the product sales of the distributors whom they have personally recruited to the multilevel marketing company.

Any new distributor they personally recruit, is placed into what is called their down line. MLM sales reps/distributors do not receive a salary. Their income is based on commissions and/or bonuses given; no salary is given. So an MLM distributor can also be described as an online “commission sales person”. Think, (Real Estate sales people, Vehicle sales men and women, Door To Door sales people in the real world,) same thing just online.

However while many multi-level marketing companies like those mentioned above are legitimate, MLM companies, the structure of MLM marketing closely resembles the structure of what is known as a pyramid scheme.

Now Pyramid schemes are illegal in most countries as they are set up to purposefully rip people of by doing business the way they do, so it is very important to recognise the differences between these two different business models.

One (MLM) is a proven successful method of making money online, The other (a pyramid scheme) is a proven successful method of ripping people off.

So the moral is do your home work on the company before you go signing up to any MLM company.

Look at How long they have been in business, who is in charge of the company and what business experience those people may have, how financial is the company and what is its focus, what sort of products are they selling, are the products actually beneficial to the people that buy them, how much will you have to outlay per month on that companies products etc.

Also check the credentials of anyone endorsing the company’s products. You can find out all this information with a quick Google search.

One very quick way of sorting out the cons from the good ones is to check and see if their focus is on selling the products or recruiting people. Recruiting people should be the last on the list, the main aim of the company should be on selling the products it makes, if it is not, say thanks but no thanks.

There are a lot of reputable MLM companies around that do sell great products and have done for years, just be careful when selecting the one you want to work with.

You can earn extra income from a MLM company however they are not a good choice for those that are low on funds and need extra cash now, they are more a long term residual income opportunity precisely because they are one of the more expensive ways to earn an income online.

I hope that has helped clear up the confusion for you.

To Learn More Watch the video on this page

Take Care CJ