Multi level marketing, or MLM, is a system for selling goods or services through a wide network of distributors, each of whom is responsible and compensated for recruiting new members to the multi level marketing system.
Most multi-level (MLM) marketing programs grow through recruitment. Each person recruited becomes part of the "downline" for the person who recruited them. In most MLM marketing arrangements people make money off of the sales efforts of their downline. In some cases, more money than they make selling or distributing the actual products or services themselves.
While multi-level marketing programs have been successful for years, including some of the most noteworthy like Tupperware, Mary Kay Cosmetics and Amway, there are many more MLM failures than successes and the MLM industry is, unfortunately, rife with scams.
Multi-level marketing scams include "pyramid schemes" in which the investor is promised huge returns for a single investment, through the investments of all the downline recruits. Pyramid schemes are illegal because there are no products or services involved that have any value, the goal is merely recruiting others to pay investment fees for services or products that are never marketed or delivered, much like a chain letter.
Most successful network marketers stress the importance of getting into the program in its youth - while there's still money to be made and before the market becomes over saturated.
If you decide to try a multi-level marketing opportunity, you are urged to do your homework carefully and fully research the business you intend to market for and make sure that your sponsors provide all the necessary training and support you'll need to be successful. You'll also need to make sure that the network marketing opportunity you're considering is legal and the products are worth buying.
There are probably many times more failures than successes in multi-level marketing and many have learned the hard way - after investing their money - that network marketing, or MLM, was not as easy as it sounded when they bought into the program.
