Is An MLM The Right Business For You? Part 2--Home Business Research - Legitimate Online Home Business Opportunities
 
 

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Are you getting the picture? You can't  make money in an MLM unless you build a very large down line, period. And that down line must be as aggressive as you, and build their own down-line. The money in your MLM is not the "product," but in the down line. That is the only way you can make any money. Of course unless you know this ahead of time you'll think it's all based on the sales of the "product." Even if it were only based on the sales of the product you must understand what restrictions you have in direct selling. MLM or Network marketing companies have very strict rules on product sales such as no direct Internet advertising, use of the "product" logo or other trademarks in local advertising, as this type of usage would be unfair to all dealers of the product who may not have the same access or ability, as you, to sell the product in those ways.

So you see it's simple. The people who make money in an MLM are those who A) got in very early in the product life-cycle and  B) were able to recruit a large down-line in the early stages of the product. Strong recruiting, usually provided by the MLM in some form of paid training, is how it’s done.

This is not to say that you still can't make a substantial income in an MLM, you can, however you need to do the following:

  • Really research the product beforehand to understand the sales potential, (where is it in the life-cycle stage.) This is where most people fail in the due diligence of company research. 
  • Are there any and restrictions on direct sales i.e. can you sell direct on any media such as Internet, direct mail or telemarketing. 
  • Are there any inventory requirements (be specific here.) Does your upward movement within the MLM require sales volume or your purchase volume? 
  •  
  • Is the MLM privately owned or is it a publicly traded company? If it's privately owned you may not have much leverage when you need assistance in dealing with your up line management for one reason or another. Remember they, your up-line management, is very important to the company. A lot more important than you. 

 

 These are just a few of the questions you need to ask before you join an MLM or Network Marketing company. You may say that this is being overly cautious and that no one would ever join any MLM if they went through this rigmarole before joining. This may be true however I would submit that there are many who will read this and say I

wish I had known this a head of time.

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