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The Basics About Multilevel Marketing Businesses

Apr 3, 2008
How successful are multilevel marketing businesses? Let's just pump out some numbers here, shall we? Avon, probably the most well-known MLM company in the world, tops $6 billion a year. Amway makes about $4 billion, Herbalife about $1.5 billion and Mary Kay $1.2 billion. That's how well multilevel marketing businesses are doing these days, thanks to the hard work, solid product and service lines and tireless recruitment practices of its members.

What is a multilevel marketing business?

A multilevel marketing business, also known as an MLM is essentially a networking business. Unlike traditional forms of businesses, MLM is made up of representatives, distributors or members who are allowed to recruit other distributors and members to form a downline.

Depending on the business model being followed by the MLM program, members earn by collecting commissions from the sales generated by their downlines and commissions obtained from their own sales. Sometimes, recruiters earn a percentage from the membership fees paid by their downlines. However, in legitimate MLM businesses, this is not the only means with which members earn. Otherwise, the business will be treated as a pyramid scheme.

Are multilevel marketing businesses legal?

Yes. The manner with which an MLM business creates its sales force and pays its members is perfectly legitimate. Problems only arise when unscrupulous individuals begin using the concept of MLM for their own dubious designs, either to promote a business that doesn't exist or a product that is low quality at best. Only when there is a legal backbone to the program and there are real, actual products and/or services being sold to consumers can an MLM be considered legal.

Do multilevel marketing businesses offer real money-earning potential?

MLM businesses boast some of the largest memberships in the world. If the figures reported by MLM companies are to go by, then it's safe to say that there is a lot of money to be made with multilevel marketing businesses. Many people have even made these businesses their main source of income.

However, remember that going into an MLM business is not going to make you loads of money UNLESS you use the opportunity. Like all businesses, a multilevel marketing venture is just an opportunity until you take it, implement it and start earning in the process.

Choosing the right MLM business

Before asking whether a multilevel marketing business will make you money, why don't you ask if it's the right business for you? The products, image, goals and opportunities presented by the company should appeal to you. After all, you will become its representative.

If you don't believe in herbal supplements, for example, you'll probably have a hard time selling products from Herbalife. If you're a man, selling Mary Kay or Avon cosmetics may not be very effective for you. It might probably work but if you're uncomfortable about learning the basics about cosmetics and home products, this is not the business for you.

The point here is to find an MLM company whose products fit your interests and lifestyle. You also have to consider your own preferences and reactions to the products themselves. If you do not trust what your MLM company produces, how do you expect to sell it or at least convince someone to become a member like you?

Success and MLM

It is possible for you to find success as a representative or distributor of an MLM company. It all really boils down to your choice of business to work with and how you will work with your downlines in order to bring in more sales. It's not just about working hard it's also about making the right moves and truly understanding the business.
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