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Multi-Level Marketing or  MLM , also known as Network Marketing, is not only restricted to the online world. It has sunken its roots even long before the internet. Some huge and successful companies were built on and continue to thrive, basing on this network model.

Multi-Level network operates on the principle of selling products or services through a vast network of independent distributors that sell at retail prices. These distributors usually paid a certain joining fee or has to buy some quantity of the product in order to gain distributorship status.

 MLM  network marketing companies all work with a solid business foundation. A parent company has a service or product to offer its customers. The networker’s task is to find other customers to buy the product and also to recruit new distributors for the products.

Traditionally, the network requires distributors to engage other people to perform the same routine. The referring distributor would then earns commission on the products that their referred distributors sell. When the distributor they referred bring in other distributors, the original distributor also receives commissions on those sales and so on. This is the concept of “Multi Level”. Most people are attracted into these kind of businesses, not so much with the interest of selling the companies products; but the conversion of buyers to distributors.

A person considering a Network Marketing opportunity should always perform the following checks:

1) Investigate the entire upline just like you would to a business partner whom you have never met before.

2) Search the website or get referral on the credibility of the Network Marketing.

3) Find out what the product is. Become an expert on the product and/or service that are being offered to clients and check on the competition as well.

4) Knowing when the  MLM  business would bring in profit. This question goes all the way to the top of the network. Do not fall for the excuse that it would take months or even years to show a profit. The  MLM  investment should be able to lead to some form of income within just a few weeks if there is actually demand for the product. Making a living on it is another story.

5) Discover what restrictions there are or where and how the product can be promoted. To know exactly what form of advertising or websites are required.

6) Check on their recruitment method. As a customer, with just a mention of a possible income opportunity, or was it a primary pitch about the business opportunity.

7) Reason for pursuing this Multi-Level Marketing opportunity? This is perhaps the most important question of all. Never focus on the short-term earnings; the potential marketer should concentrate on the long-term goal.

There are certainly no right and wrong answers to these questions concerning a Multi-Level Marketing network opportunity. The point is to make sure that everything is known and transparent. Many people have made a lot of money in Network Marketing, but many more have ended up just wasting their time and money.

It is therefore of utmost importance to pick on the right  MLM  network, which can be a solid foundation and your best home based business opportunity.

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Source by July Roslan