Business Model

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

There are literally hundreds of companies which use this business model to move their products from production to the end user and my goal in this article is to provide you with the simple facts on what this industry IS and what it is NOT!

With the information I will provide here, 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 simply a business model for moving products and services from production to the consumer using independent distributors with a multi level commission payout plan. Since distributors can recruit other distributors and establish teams that work together, this business model is often also called Network Marketing.

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 MLM 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.

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 what's the big attraction to MLM companies and programs? Well, it represents a wonderful opportunity for the "little guy" to start his own business on a part time basis and make a whole lot of money provided he or she is willing to put in some work! This is not a get rich quick scheme and work is involved, no matter what some MLM recruiters would like you to believe.

However, the beauty of MLM is that it's not about one person doing it ALL. It's about many people each doing a little and working together as a team! Members of a Network Marketing or Multi Level Marketing company are not actually employees of the company, but rather independent distributors. Each distributor helps "distribute" the companies products to consumers. The distributors are compensated for their efforts by a retail commission based on the amount of product moved from production to the consumer.

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 larger downline a distributor can recruit, the larger will be his or her commissions as they will earn a wholesale override commission on all the products moved by their downline organization down to the designated level. These commissions can add up quickly for distributors with large downlines.

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.

In addition to selling products directly, recruiting, training, and retaining others becomes the key to earning a large stable residual income with Multi Level Marketing. It is not easy, but it is very rewarding.

In fact, millions of people are earning a solid income from the comfort of their own home while being their own boss. With MLM, you don't need an expensive office anymore. A telephone, basic computer, fax machine, a HUGE ambition, and the knowledge of how to proceed to grow your business are all it really takes! To discover how to proceed to build a MLM business online and some of the popular Multi Level Marketing myths that cause people to fail in their Network Marketing businesses, click the links in the resource box below.