The Truth About Multi Level Marketing (MLM)

These days Multi Level Marketing is more commonly referred to as Network Marketing or Relationship Marketing.

Regardless of what you may think, it is a massive industry ... with many ordinary people achieving success and financial security.

However, let's be honest about it - the mention of Multi-Level-Marketing (or Network marketing) often receives a negative response from people.

Unfortunately, the methods of some early MLM companies have resulted in many people thinking that modern Networking Marketing is something to avoid.

Many people assume that modern network marketing companies operate like the old ones in the 1970's and 80's when people were required to buy a garage-full of products and talk their family and friends into going to business with them.

Nowadays, smart and successful network marketing companies have a very different approach. 'New Millenium' companies use new sponsoring/recruiting methods that mean you don't have to sell to, or risk offending your family and friends.

Even Amway (also known as A2k - Amway Online) has reinvented itself. Mention MLM or network marketing to people and many respond with "Is it Amway" or "If it's Amway, I'm not interested". Regardless of the reputation is has in many people's eyes, Amway is a very successful global company with a huge number of successful 'distributors' around the world.

Often people have negative feelings about MLM and criticise it because they've tried it and failed or have heard of someone else who has failed. This is usually the result of a person attending a network marketing business presentation, becoming momentarily motivated and deciding to join the business ... even though they were not looking to get into a business in the first place.

While this can work with some people, you will only be successful if you are consistently self motivated ... and unfortunately most people aren't. When the new MLMer's initial enthusiasm wanes, they look for someone else to blame for their lack of success.

Modern Network Marketing companies know this and will often test your persistence and motivation by asking you to go through a few steps before joining the business.

The big advantage of Network Marketing is the commission structure and high income potential.

Network Marketing gives ordinary people the potential to earn an extraordinary income ... one that would be unlikely any other way. There are not many other businesses that you can get into with such small ingoing / set-up costs and have the potential for such high rewards. The multi-tier commission structure contributes to this high income potential.

So before you rush out and buy a business or set up a new one, consider network marketing as a viable alternative and see what it has to offer.

There are many Network Marketing businesses, both internet and non-internet. If you're considering any of them, make sure you're suitable for them and they're suitable for you before you make any commitment. Ideally, if you can find one that determines your level of motivation and uses new methods to help you grow your business, then it's probably well worth considering.

Most importantly, you should be already considering going into business for yourself ... and you must be able to sustain a good level of self-motivation.

Remember, legitimate Network Marketing businesses are not 'get rich quick' schemes. Often it will take you between 1 and 5 years of business development before you are making a substantial income. However, with many, depending on your level of commitment, it is possible to be earning $100,000 or more in less than 2 years.

Legitimate Network Marketing is NOT Pyramid Selling

Quite wrongly, people often label network marketing as a pyramid scheme.

This belief probably comes from the multi-level-commission structure that looks like a pyramid. The fact is, pyramid schemes usually operate undercover as they are illegal in most countries.

Unfortunately, many people don't know the difference between legitimate MLM and a pyramid scheme.

Pyramid schemes are illegal because they don't usually provide and promote a real product or service. People usually pay a recruitment fee to enable them to recruit more people ... like a chain letter or the "Airplane Game" of the late 1980s. As there is usually no product or service, the total entry fee is divided among the participants. Pyramid schemes are illegal in most countries and promoters of these schemes are usually stopped very quickly by government authorities.

Also, we forget that most products we buy are sold through a similar shaped multi-level marketing structure that looks like a pyramid.
eg. Unless you buy direct from the manufacturer, most manufactured products are distributed by a marketing structure that also looks like a pyramid.

Legitimate Network Marketing companies are usually ethical and honest and cannot be remotely compared to pyramid schemes.