Multi-level marketing (MLM) is a home business opportunity where you sell products and earn a commission on sales and referrals. MLM has pros and cons, including the need to recruit others and the risk of scams. Research the company and product before investing.
If you’re looking for a home business, you’ve probably seen a lot of ads for multilevel marketing or MLM. Multi-level marketing, also known as referral level or network marketing, gives you a commission not only on sales of your products, but also on sales of those you recommend for the program.
You’ve also likely seen articles and news programs warning you to stay away from multi-level marketing business opportunities. While it’s true that many of the multi-level marketing opportunities out there are out of date, you might be interested to note that not all multi-level marketing opportunities are a scam.
Here’s how it works: After you make an initial investment, you receive the supplies you need to sell a particular product. In many cases, the products are vitamins or weight loss supplements. In addition to selling, refer others to the program. Every time you sell a bottle of vitamins you get a commission, but so does the person who gave you the initial referral. You will also earn money from any vitamins sold by the people you refer to the program.
Multi-level marketing doesn’t just involve selling products; you also need to be able to recruit as many people into the program as possible. In fact, multi-level marketing probably places more emphasis on the recruiting side than the selling side. The more people you bring into the program, the more money you’ll make on their commissions.
As with any business, multi-level marketing has its pros and cons. For example, you can make your own hours. You can also train from the comfort of your home. You are your own boss and make all the decisions regarding your business. Who doesn’t want that freedom?
While working for you might be attractive, you have other considerations. What if you send $25 to $100 for a vitamin vending kit and there are no takers? The failure rate with multilevel marketing is very high. The reason for this is that most people give up after a few months where it may take longer than sales. You will have to make the decision whether it is worth working hard for an extended period of time with nothing to show for it.
A final consideration is that many people see multilevel marketing as a scam. For this reason, you may find it difficult to recruit others to join you in the program. If you are interested in investing in a multi-level marketing program, it is recommended that you research the company and product extensively. Don’t forget to check the Better Business Bureau. There are many scams out there and if you are not careful you can fall prey to one of them.
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