Whereupon Jackie explains just what MLM is.

A buddy from High School just called to tell you all about his new home business. You’ve heard a lot about MLM on the Internet. You’ve seen sign and heard ads on the radio that talked about the money to be made in MLM. You’ve wondered if you could have a home business and quit your job.

And just what is MLM, anyway?

Products and services move from the folks who produce them to the end user. MLM is simply another way of making this happen. It’s a real business model that uses a team of people who each start by using the products themselves and then do their share of the marketing and sharing the products with others.

There are other names for Multi-level Marketing (MLM.) They include, referral Marketing and Network Marketing. Basically you are simply building a business from Home.

Several other business models exist, which you might be familiar with.

The most common way of buying products and services is in a Retail Store. In the Retail model, stores like Wal-Mart, Lowe’s and Bed, Bath and Beyond have products to sell you and sometimes, like with Computer Stores, a force of sales people to help you with choosing the right product. Also, within the Retail Model are the Internet versions of these same stores along with some stores which only exist online, like Amazon.com.

Direct Sales is another common way of moving product. This is a more one-on-one relationship between the sales people and the customers. Direct Sales companies include many insurance vendors, some home jewelry sales companies, and “Ding, Dong, Avon Calling.”

In a Network Marketing system, products and services are offered within a network, with folks purchasing products and services for themselves and offering the same to a few customers. Everyone in the network makes a portion of the commissions along the network for the volume of product moved. In a good system, the network members work side-by-side and end up making more than if they were out there by themselves.

Because the costs of doing business are not as high for an MLM company, they can afford to give a bigger percentage to the team members doing all the work. They don’t have stores all over the country or world which would be costing thousands and thousands to keep open, but they still have the individuals out there telling folks about the products or services that the company sells. This is a very efficient system.

The question always arises whether MLM is a Pyramid Scheme.

In a word: No. MLM is a legal way of moving products and services to the end consumer. Pyramids are illegal. They generally do not have either a product or a service, even though they may appear to. There are many great companies out there that have been around for a long time. Remember, it’s simply another system of marketing. A little research into the business you’re looking at can give you the answers you’re looking for.

MLM is a great way for a normal, everyday person to build an extraordinary income over time. It is not a get rich quick deal and if folks make that claim, find another sponsor or another company. Do your homework, there are some things to look for in a good company. Find one that’s a good fit and then get to work!

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Wondering if you can build a Home Business Online? Yes, Yes, Yes