When I first started in this industry, it was because of an add saying:

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I had NO IDEA what MLM or Network Marketing was, or even that it was possible to earn a living on internet. So even though I was being bombarded with information, it took me a while to understand what all those people were talking about, simply because I was missing the very basic principles of the industry. So Ill try and reduce the learning curves of you newbies, as much as I can with this little article

MLM means Multi – Level Marketing. It is a marketing system where a product is sold via multiple levels of sale representatives (reps). A primary company gets sale repsentatives to sell a product. Each time a rep (can also be called a few other names : distributor of the product, member, affiliate, partner or associate) sells something, he gets a percentage of the gain.

In a traditional Marketing system, the primary company would hire his distributors and pay them at a fixed price, independently from the results they get. MLM companies on the other hand pay commissions, which means they are not restricted to a certain budget and can recruit endlessly. There is also no limit to how much each distributor can earn. However, he (or her !) is responsible for his own pay.

But sales representatives can also become the ones training new sales representatives, and so not only can they earn money from their own sales but also get a commission from their own sales reps, also called their down line. (The person who trained them in the first place being their up line).

So if a sales rep represent one level of the marketing system, if he is linked to an other sales rep who trained him to sell his product, and if he has himself trained other sales rep to sell the same product, then there is a Multi-Level-Marketing system in place. There is no limit to the number of levels an MLM can have. The number of levels one sales rep can get commissions from is different in every company. For some it is one level, for some more.

MLM or traditional companies alike have one goal in common: to provide a product or a service that makes a consumers life better. But no matter how brilliant a product is, it will only get sold if it is known by the targeted audience. The distributor’s job is to find that targeted audience and to get the product in their hands.

One thing you need to be aware of before joining an MLM company: some are legal, some aren’t. To make sure yours is legal, simply ask yourself what is the product (or service!) you will be selling. If you can’t answer that question, it means they are only about recruiting new sales reps, and it is a pyramidal scheme. If that’s the case, it’s better not to join !