You may have heard of MLM and immediately think of one of the oldest and biggest MLM companies, You might have the impression that either MLM is a scam or the greatest way to do business in the world. But, in fact, what is MLM?
MLM usually involves joining a company "underneath" someone else, in other words people become consultants or representatives with someone that is already in the company. You then become a member of not only the company but also of an existing member's team. When you join, the person you sign up with receives a commission from the company, in addition they usually also get a commission for people that you sign up as well. This commission is usually paid several levels deep depending on the company compensation.
The long answer to what is MLM is that it is an amazing way to build a business and way for ordinary people to earn an extraordinary income and in these uncertain economic times this is a huge plus. You have the opportunity to work from home, be your own boss and design the way you do business. And depending on your choice of companies you can earn commissions on new members you sign up who are usually asking, "What is MLM?", as well as a percentage of the products you sell. This idea of earning money on the work of others is called passive residual income, payment received with little to no work involved on your part. The amount of money you make depends of the type of company you join.
Your first question is what is MLM, your next one will be what type of MLM company should I join. My recommendation is to join a "top tier" company where you are paid a majority of commissions on your first level, which are the people that you personally bring into the company. This type of commission structure, often referred to as "get paid today" or "GPT" most often pay out starting at $1000.00 per sale and sometimes up to $9,000.00 per sale and most often are in the direct sales category. In addition, you will find these companies are information or education based which means you do not have to order, buy, or sell a quota of product each month.
Another response to the what is MLM question is this: MLM was started as a method for a company to advertise and distribute their product in a non-traditional way. Instead of paying millions to advertisers and competing in the market for buyers they rely on word of mouth and pay commissions to marketers to spread the word and recommend their product. This is where MLM pays off for you and there are many, many MLM companies and products to promote, the sky is the limit! No it's not a scam or a pyramid scheme. Yes, you have to work; it is NOT a get rich quick scheme. And yes, you can earn a great income with work and mindset.
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