Free Home business Tax Info
Free Ad Submission
MLM Classified Ads
Free e-Check Software
Free Search Engine
Internet Directory
Free Doorway Pages
MLM Lead System
Permanent Link Exchange
Free Leads
Help Fight Spam

Search for
MLM Training
cbmall
google
yahoo
msn
ask jeeves
look smart
earthlink
dogpile

Is A Network Marketing Company The Right Business For You?

Multi-level Marketing Backgound:

The lure of the MLM is a powerful one. On the surface MLM or Network Marketing companies are very attractive. The testimonials are very inspirational as there is the usual line-up of successful business owners living the good life with luxury cars, beautiful homes and no debt and all because of the "product." There are even rags to riches stories with someone who was on public assistance at one point in their life and now lives “cash rich” with all of the trappings of success. No doubt these testimonials can all be verified in detail, as they must be to remain legitimate to be claimed. Each testimonial would have you believe that you are most certainly mentally challenged if you not to join this organization. Indeed those who have become successful are living proof that the "product" works. It’s not the product though, as I will explain.

Let’s skip forward in time to your own experience with the "product." In this scenario you've been at it for almost a year now and have worked your way up through the ranks. You have moved up several levels in the organization and your up-line boss is very pleased with your progress so far. You are now at a level that allows you to buy new product at a substantial discount and the per unit profit potential is substantial. The funny thing is you really haven't earned a net profit yet. Yet you have used most of your own start-up cash and you are close to your limit on your credit card(s).

You've even sold products and have built a small down line that is selling and earning for you but you still have a large "inventory." After all you had to buy inventory to move up within the organization, as you were told by your up-line boss. You were also told that, even though this isn't a requirement, you need to build a large "down line organization" which equates to building a sales force under you. This requires you to actively solicit and recruit down-line leads, which by the way your up-line manager has a recommendation for if you are interested in having those leads sourced for you by a totally legitimate and reputable company.

Are you getting the picture? You can't make money in an Multi-level Marketing unless you build a very large down line period. And that down line must be as aggressive as you, and build their own down-line. The money in your MLM is not the "product," but in the down line. That is the only way you can make any money. Of course unless you know this ahead of time you'll think it's all based on the sales of the "product."

Even if it were only based on the sales of the product you must understand what restrictions you have in direct selling the product yourself.

Multi-level Marketing As A Home Based Business

MLM or Network marketing companies have very strict rules on product sales such as no direct Internet advertising or selling, use of the "product" logo or other trademarks in local advertising, as this type of usage would be unfair to all dealers of the product who may not have the same access or ability, as you, to sell the product in those ways.

So you see it's simple. The people who make money in an MLM are those who A) got in very early in the product life-cycle and B) were able to recruit a large down-line in the early stages of the product. Strong recruiting, usually provided by the MLM in some form of paid training, is how it’s done. You can get the same training too for a small additional fee.

This is not to say that you still can't make a substantial income in an MLM, you can, however you need to do the following:

-Really research the product beforehand to understand the sales potential (where is it in the product life-cycle stage) This is where most people fail in the due diligence of company research.

-Are there any and restrictions on direct sales i.e. can you sell directly on any media such as Internet, direct mail or telemarketing?

-Are there any inventory requirements (be specific here.) Does your upward movement within the MLM require sales volume or your own purchase volume? Are there monthly ,quarterly, yearly sales or inventory requirements to maintain your level?

-Is the MLM privately owned or is it a publicly traded company? If it's privately owned you may not have much leverage when you need assistance in dealing with your up line management for one reason or another. Remember they, your up-line management, is very important to the company. A lot more important than you.


These are just a few of the questions you need to ask before you join an Multi-level Marketing company. You may say that this is being overly cautious and that no one would ever join any Multi-level Marketing if they went through this rigmarole before joining. This may be true however I would submit that there are many who will read this and say I wish I had known this a head of time.