Category Archives: Internet Business

What Is An MLM?

What is an MLM?

Let us define what an MLM is.  “Multi Level Marketing (MLM) is a controversial marketing strategy for the sale of products and/or services. The salesperson, distributor , consultant, promoter, independent business owner or what ever the participant is called,  receives a commission for direct sale of a product/service and  a smaller commission from any one who he has enrolled in the MLM company”.

One of the incentive of an MLM company is that this is a “home based business”with no office to commute to.  In fact this is the most common denominator among all MLM companies.

Each MLM company has it’s “own” compensation program and rules for distribution of wealth.  Many times the only ones that are making the big $$$ are the ones who were in on the “ground floor” when the company was formed.  In another words, the lower in “rank” the less pay you will likely receive in the compensation.

The company will encourage you to build your own network or team.   This is possible for the person who has a “sales” type personality.  The average person who lacks the aggressiveness to sell someone the “plan” usually will have a much smaller team and smaller income from down-line members.  The same thing is true of the direct sales to “customers” which in many cases are other participants in the company rather then those customers outside of the company.

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