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What The Legitimate MLM Business IS

Aug 17, 2007
When looking for opportunities to earn money online and have a job telecommuting, take a look at multi-level marketing online opportunities as a means of creating income streams to keep your family budget in line. There are many good programs in cyber space but you will want to look at them deeply if you want bonafide success.

The first thing you will want to do is understand the difference between multi-level marketing and the older, now illegal, pyramid schemes. When pyramid schemes were al the rage in the 1960s and early 1970s, the concept was fairly simple. Someone started a program in which people would buy their way into the program by paying x-amount of dollars for the privilege. Then, they would convince other people to buy into the program, also paying x-amount of dollars, and so on never believing there would be an end to the people buying their way in.

As people bought their way in through you, they became a part of your downline and their payments were passed up to your upline, that is those who joined before you, and you kept a small portion of their fee. You also received a smaller portion of the fees from people they recruited with, again, the balance being pushed upwards in the pecking order.

Problems began with these schemes, often referred to as scams, when the people in your downline could not get anyone to join under them and the entire pyramid caved in on itself. With the number of pyramid schemes going on at that time and the number of them crashing, the Federal Trade Commission convinced the federal government they should be outlawed and they were. Mainly, because there was no tangible product or legitimate service being offered and the people paying their fees received absolutely nothing in return.

The main difference in multi-level marketing online opportunities is that there is a product or service being sold and people pay a small fee for the rights to sell that product or service and all the perks that go with along with it. The program becomes a network of distributors and the number of people that share in the percentage of profits is typically limited. While these are the types of programs you will want to look into, that is not saying you will be a success at it as the product or service has to be one in which other people are interested.

Additionally, you will need to learn something about online marketing if you are going to hope to sell the product or service to anyone other then family members and friends. If you only try to sell to family and friends you may convince them to cross the street when they see you approach. Find a product that you can believe in and then educate yourself on the ways of internet marketing to insure a future income stream.
About the Author
Larry Bregman is a webmaster and an online entrepreneur with easy to start internet businesses that can generate extra income and in time make you financially independent.

Visit his website and sign up for his free e-newsletter at http://www.topprofit.net for details.
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