Multi-level Marketing as a Homebased Business

Written by Paul Waverly Sunday, 12 June 2011 03:47

Multi-level marketing (MLM marketing), also known as network marketing or direct selling, is a sales strategy in which the sales force is compensated both for sales they personally generate, but also for the sales of other people they recruit, creating a "downline" of distributors and a hierarchy of multiple levels of compensation.

Multi-level marketing (MLM marketing), also known as network marketing or direct selling, is a sales strategy in which the sales force is compensated both for sales they personally generate, but also for the sales of other people they recruit, creating a "downline" of distributors and a hierarchy of multiple levels of compensation.

Generally, the distributors sell the company's products directly to consumers through their personal relationships and word of mouth, and develop other dealers for their downline through the same means.

Single-level marketing is different from MLM marketing. A salesperson is rewarded for online selling the product, but not for recruiting or sponsoring other salespeople, in single-level marketing in contrast to multi-level marketing.

Some of the benefits of MLM marketing include:

Typically a homebased business. Dealers can work from home to generate additional income to their day job. Many dealers find that they can generate enough income to actually quit their day job and enjoy an enhanced lifestyle.

Flexible hours. Distributors may work the hours they choose. Some dealers only work part-time, and find that they can make good money because of the residual income potential.

Usually a low-cost to entry. Most people interested in making more money from home, can easily start their own business.

Minimal risk. Most MLM marketing opportunities have very minimal risk. You don't have to buy and hold inventory, nor are you required to pay for advertising that may not benefit your sales efforts.

Tax Advantage - When you start a homebased business, you can take advantage of the small business tax write-offs.

Better lifestyle. The income potential for most MLM marketing business is unlimited. Those dealers that work the business can improve their lifestyle, spend more time with family and friends, and enjoy the fruits of their labor.

The disadvantages of MLM marketing include:

It takes time, effort and motivation. If you are not a self-motivated individual, and you do not put the time and effort into the business, you will not achieve success. You will not only have to attract your downline, but also stay on top of them, train and motivate them as well.

MLM scams. Unfortunately, there are a lot of network marketing scams out there. In some cases the compensation plan and structure are weighted in favor of the company rather than the individual dealers.

You must be comfortable with sales. Persons who do best in direct selling structures are friendly, personable individuals who are articulate.

Products - Some network marketing companies do not have good products. You have to be able to promote products that you believe in, for your own self-respect, and to earn the respect of your downline.

A good MLM program can be an ideal type of business to from home. While there are some less attractive MLM marketing companies out there, don't be discouraged. There are just as many great opportunities or more. Don't all a few (or even many) to rob you of the chance to participate in something that may ultimately lead you to legitimate homebased business success.