The ABCs of Multi-Level Marketing

by Rick Carbone

Multi-level marketing has been around for decades, there have been dozens of MLM or Network marketing companies over the years. The concept is simple. You are recruited to sell product(s) and you earn commissions on your sales, additionally your "up-line" manager (The person that brought you into the company) receives a percentage of everything you sell. The people you recruit to sell product for you make money for you as well as your up-line management. The people in your "down-line" or those that you have recruited can also recruit others below them all the while you, your up-line management and your down-line management are all making money off those sales.

In most multi-level or network marketing businesses there is no limit to the number of levels you can have up or down. You can see that it can be quite lucrative if you have an army of people selling for you. It can also be quite viral and grow rapidly depending on the product and how well it is being received. The age of the product is important because if it completely new you have a great opportunity to make many sales on your own as well as recruit people to your down-line.

The key to being successful with a multi-level marketing program is getting in on the ground floor before the product has become saturated in the market place. It’s almost impossible to become successful without building a strong or large down-line. It’s also very hard to recruit people into your program when the product has been out there too long. Many recruiters will tell you that it doesn’t matter because the product has only hit a small percentage of the potential market. However, the issue is, that as a multi-level marketing business evolves it becomes harder and harder to move up in the organization as the criteria becomes more difficult. Multi-level marketing businesses resemble a pyramid organizational structure.

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