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Many people have misconceptions of what Multi level Marketing is aka “Network Marketing”.

These types of companies are often mistaken for a pyramid scam or something like that.

That is simply not true and one thing you have to understand about the internet is that anyone with an opinion can suddenly become an “expert”.

Let’s look at some well known companies that are classified as MLM companies:

  • Avon
  • Mary Kay
  • Tupperware
  • Pampered Chef

These are just a few of the more well known Network Marketing companies, hardly anything close to resembling a scam, yet when you type their name in Google with the word scam included you will find hundreds of anonymous “experts” claiming that they are scams nevertheless.

So what do MLM companies actually do? The business model is simple. As a distributor of a Multi Level Marketing company you will also be a franchisee with company approved sales material and supplies, using a tested method developed by the company, to promote its products.

You will also have the opportunity to enroll other distributors to work with you, of whom you will then receive a percentage of their sales as well as a percentage of their distributors. This is also referred to as Multiple Levels. If for example you enroll or sponsor 2 new distributors, and each one of them enroll 2 new distributors all the way to the 8th level, you will now have a team of 256 distributors all of which will be earning you commissions, whether you do anything or not!

That is called leverage and that is the power and attraction of Multi Level Marketing.

This is the only business I know of, that anyone can start for a few hundred dollars, and within about 18 months build a residual income that surpasses most peoples’ monthly income. It is not uncommon for MLM distributors to make $10,000.00 a month.

Before you get too happy though, I want to caution you that this is not as easy as it appears. It isn’t hard either but it requires hard work & determination.

First you must pick a solid company. These are the most common things you should look for:

  • Has the company been in business for a while? I recommend 5 years minimum because most MLM companies fail within their firs two years
  • Are the products competitive in the market place? Price wise and quality wise
  • Can the product stand on its own? Would somebody by it even if they didn’t want to become a distributor?
  • Do you like and believe in the product? You never want to join a company just because of the compensation plan
  • Does the leadership have experience with MLM type companies?

If you can confirm most of these you likely have a solid business opportunity on your hands.

The Multi Level Marketing Industry is a very exiting industry and the right type of person can make a lot of money in a relatively short amount of time, but you have to be willing to go through the learning curve if you have no prior marketing experience. Because it is after all Network MARKETING.

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Source by Remko Marcia