Updated: May 2nd, 2020 Some people say Rodan + Fields is a pyramid scheme and a good for nothing scam, while others say it's an amazing company with great products and a legit business opportunity. So … [Read more...] about Is Rodan + Fields a Pyramid Scheme? (2020 MLM Review)
Multilevel Marketing (MLM)
Welcome to our page about multilevel marketing!
Here we explain what MLM is, how it works, and list some of the pros and cons. We also provide links to other related content you may find helpful.
What Is Multilevel Marketing?
Multilevel marketing (AKA MLM, network marketing) is a business model where you earn commissions selling products and recruiting others who sell products.
It's a form of direct sales because MLM companies sell their products directly to consumers, through a network of independent distributors. Effectively bypassing the traditional retail sales model.
This provides everyday folks with the "opportunity" to start a home based business for a relatively low cost, promoting these products and building a team of distributors under them.
How Does It Work?
To get started in network marketing, you first need to select a company you want to work with, and after joining, you can earn commissions promoting the company's products.
You can also build a team of distributors under you, who go into your downline, and in doing so, earn commissions based on their sales activity too.
Each company is different. Different products, different compensation plans and different styles of leadership. So exactly what you sell and how much you earn (etc) depends on the company. As well as how much effort you put in.
Is MLM Legit?
The simple answer is yes, MLM is legitimate. It is a legal and legitimate business model in the eyes of the law.
The longer answer is, it depends on the company itself.
Some companies operate in a similar manner to a pyramid scheme. Where the main focus is on recruiting people, who recruit people. Versus focussing on selling a high value, marketable product to consumers. And in this case, that company would not be legitimate and is not operating an ethical, sustainable business.
Sometimes it can be hard to tell the difference, but one common theme is always how much emphasis the company and it's distributors place on selling quality products, above mass recruiting. You can learn more about pyramid schemes here.
Who's It For?
Anyone can be successful with network marketing, but most people aren't. It seems to be one of those business models where 95% of people (or more) end up failing.
The most successful network marketers are those who know how to build a large team. And typically those who enjoy meeting new people, giving presentations, speaking at events and face to face selling. It's basically a sales job, so it suites people interested in sales.
- There is potential to create passive income over time if you build a large enough sales team under you.
- There is typically lots of self development training and events where you can meet like minded people.
- Allows you to be a key part of a company you're really passionate about.
- Most MLM companies require you to "qualify" to earn commissions, by purchasing or selling a set amount of product each month.
- The real money is made by recruiting, which is where the fine line between legit MLM company and pyramid scheme becomes blurred.
- As a network marketer, you're building your entire business around one company, which means you're putting all your eggs into one basket.
Top 10 MLM Company Reviews
- Team National
- SeneGence International
- Paparazzi Accessories
- It Works!
Top MLM Articles
- Affiliate Marketing vs Network Marketing: Which Is Best?
- Can You Make Money With MLM (without recruiting)?
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