MLM, also known as Multi Level Marketing, can be a wonderful method for achieving your financial and personal goals when combined with the power of the Internet.

My goal in this article is to briefly explain what this business model is and what it is not since it is used by hundreds of companies to move their goods and services from production to the end consumer.

With the information I will provide in this article, you will be able to make an informed, educated decision as to whether or not this business model is right for you.

Multi Level Marketing is nothing more than a business system that uses independent distributors with a multi level commission payout plan to move products from production to the consumer.

Unfortunately, many people do not understand how multi level marketing programs work and believe that they are some sort of scam or illegal pyramid scheme. Nothing could be further from the truth for legitimate Multi Level Marketing companies.

First, understand that MLM is not an illegal pyramid scheme. It is 100% legal and many multi-million dollar companies market their product strictly through MLM promotion.

Many Multi Level Marketing companies have been around for decades. Some of the better known MLM companies are Shaklee, Tupperware, Mary Kay Cosmetics, Amway, A.L. Williams (Insurance), Princess House (a subsidiary of Colgate Palmolive), Melaleuca, MCI, U.S. Sprint, and NSA.

There are actually 100’s to 1,000’s more Multi Level Marketing companies. Like other companies, some are good and some are not so good. But one thing is for sure. MLM is here to stay, and it is an explosive growth field! Fortune 500 companies are even increasingly including the Network Marketing business model for some portion of their marketing portfolio!

So why are MLM companies and programs becoming so popular? Well, the business model offers a wonderful opportunity for the “little guy” to start his own business on a part time basis with very little investment money upfront, but with a large income potential if she or he is willing to put in some work! Contrary to what some people would want you to believe, MLM is certainly not a get rich quick scheme and requires effort to grow your business.

John Paul Getty is often quoted as having said that he would always prefer earning 1% of a hundred peoples efforts than 100% of his own efforts. And that is precisely what Multi Level Marketing is all about. The Multi Level Marketing sales force members are not actually employees of the company, but instead they are independent distributors who are compensated for their efforts by commission based on the amount of product moved by not only themselves, but also by those whom they recruit as distributors.

As each distributor recruits others to become distributors, they create what is known as a downline and in addition to their own retail sales commissions, they earn a wholesale commission on the amount of products their downline distributors move to consumers. This process goes on for some designated number of levels and is where the term “multi level” originates.

The more recruits a distributor can get under them, the larger their downline and therefore the larger their total commissions. How many levels a distributor can earn commissions from in their depends upon the particular company’s compensation plan. Five to seven or more levels is not unusual.

Thus if a distributor can teach his or her downline members to be successful, then then they will be rewarded by increased earnings themselves. To paraphrase what Zig Zigler once said, you can get anything you want if you help enough others get what they want. By helping others succeed, a distributor helps themselves.

Building large stable residual income is therefore the result of successfully recruiting, training, and retaining others. The better one is at doing these things, the larger their income will become. While it is not necessarily easy, it can be very rewarding.

Millions of people are discovering the advantages of being their own boss and working from home with the MLM business model. A basic computer, telephone, fax machine, a HUGE ambition, and the knowledge of how to proceed to grow your business are all it really takes!

-Albert-


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