You’re asking the wrong person, I’m afraid. I’d like to hear from some of you out there in Internet land that have experience in this arena.
It’s not wise to take advice from someone that has never been involved in MLMs or to make an assessment of their value, potential, and advantages or disadvantages.
Let me just set the stage with this short introduction to get you going:
MLM is short for Multi-Level Marketing.
It is the type of business opportunity that appeals to many people because the business model and products have already been proven by others who have been successful at it.
Also, MLMs are a fairly easy and inexpensive way to begin your own independent business.
MLMs attract part-timers and work-at-home types because it is a very flexible, individualized, and set-your-own schedule type model.
It is also sometimes referred to as network marketing because the business functions as a network of independent business persons usually tied together in some type of a matrix (on paper it appears as a triangle or a pyramid.)
The matrix is set up to reward those who are able to recruit new members into their “downline.”
The new recruits usually sell products and try to sign up their own downline members.
Those “above” and at the top of the triangle generally make a commission on everything sold by their downline membership; thus there are several options for expanding your network both vertically and horizontally.
Most MLMs require a low initial start-up investment which could come in the form of a product “kit” that you purchase which can then be used to begin selling products to family, friends, and other referrals.
Some of the more well known MLM brands are Amway, Herbalife, Avon, Tupperware, Mary Kay, Nu Skin, and Usana.
Sometimes problems arise in this industry when companies don’t have a real product and income is only generated from new recruit sign-ups.
Illegal pyramid schemes rely upon the contributions of new members (recruits) to pay the commissions of those above them in the matrix.
I realize that it’s not fair to lump all the illegal businesses in with those that are sound and legitimate MLMs.
There are illegal and shoddy businesses in all business models.
If you decide this is the type of business for you, I would suggest you do some serious research into the specific MLM(s) you choose to join.
Make contact with the Better Business Bureau and the State Attorney General’s office to see if there are claims or investigations going on related to the companies you’re looking to join.
Now, let’s hear from all you MLMers out there.
Give us your feelings and thoughts about this fascinating and sometimes lucrative business model.
To your online business success,