MultiLevel Marketing Explained

The world of MultiLevel Marketing, or MLM as it is commonly known, has been in existence since 1959 when Amway invented this business model. Many people jumped on the bandwagon because of not only the newness and the novelty of the program but also the compensation plan that was offered. Over the years, there have been many success stories with this company and many others who have come along in the past 40 years since.

The basic principle of the MLM is to market a relatively inexpensive product, typically in the supplement and/or cosmetic area. People who sign up with an MLM company can expect three things: a reasonably good product that in some way is unique in the industry, at least to the MLM company marketing the product; the second thing they can expect is to be required to participate in some type of autoship program of the products each month, in order to remain commissionable, given that the rep actually sells any product to receive commission; the third thing someone can expect is to be advised to seek out family and friends to whom they can present the business and hopefully enlist them.

While the products are the main reason for the business on the surface , the money is actually made in recruiting others who are hopeful to change their lives. Certainly, new recruits are given training on the products, their usability and other key topics in order to be successful in achieving their dreams of self employment.

The main objective to be successful is to recruit people into your downline, which typically has 2 legs. You cannot build 1 leg to the exclusion of the other. Both must be growing constantly to make the kind of income people say they want to generate. As new recruits come on board, they require considerable support to get trained themselves to do the same thing as their upline did for them.

The idea is that as your downline grows and more people are added not only by you, but by the people you bring in, a part of the money pie is passed up to all those whom you have recruited. This generally does not go on ad infinitum, but only down to a level, i.e., 5 deep.

There are many people who have been very successful in this business model and are to be commended. It takes a person of a certain metal to be an entrepreneur in the first place, but sticking to the MLM model and being successful takes a person of amazing vision and determination.