Multi-Level Marketing/Network Marketing Crash Course

It would be hard to have a site on Home Based Business without a mention of either of these two business formats, as many fortunes have been made through these types of business opportunities. First let's define Multi Level Marketing. the WikiPedia definition is as follows, "Multi-level marketing businesses function by recruiting salespeople (also called Distributors, Independent Business Owners, IBOs, Franchise Owners, Sales Consultants, Beauty Consultants, Consultants, etc.) to sell a product and offer additional sales commissions based on the sales of people recruited into their downline, an organization of people that includes direct recruits, recruits' recruits, etc."

What this basically means is that in order to succeed in an MLM you must build a downline. If you are a natural networker this may come easily to you. Not only do you need to recruit you need to retain and motivate your downline to sell more. You also need to keep apace with their sales volumes as well. Some MLM's require that your personal sales volume must be greater than your top sales person in your downline. This is easier said than done.

MLM's historically have been associated with illegal and fraudulent activities citing such illegal activity as a Ponzi Schemes (A Ponzi scheme is a fraudulentinvestment operation that involves paying abnormally high returns ("profits") to investors out of the money paid in by subsequent investors, rather than from net revenues generated by any real business, named after Charles Ponzi.) or Pyrimad Scheme. There are some legitimate MLM's however you really need to do your homework if a business opportunity that you are interested in requires a downline.

The reason why so many people are drawn to MLM's or Network Marketing type opportunities is simple, when they really work they can generate tremendous amounts of cash usually from the extensive downline organization they build by recruiting others to join in the business model who in turn recruit others and so on.

We have researched some articles and resources for your further edification. Our bookstore provides several books that help in the MLM evaluation process.

You can also read the Federal Trade Commission's Alert on MLM's here. (You need the Adobe Acrobat Reader) As the FTC report states, there are numerous legitimate MLM's and Network Marketing opportunities and companies, you must use extreme caution before getting involved or investing your money. You can also use other services to perform background checks on either upline managers or downline applications here: SSN Background Checks - Search using social security numbers   .

IMPORTANT: As much as you would like to believe that you have found your dream business in a MLM, or an MLM recruiter has sold you, hook, line and sinker about their MLM, do yourself a big favor and research the company and the recruiter. You can do your research and get information on an MLM before you sign up by getting a background check from Hoover's. It's a good time to use Hoover's as they are currently running a promotion whereby you can get 30% Off Hoover's Company & Industry Reports   right now. It's the right way to get involved with any MLM or Network marketing company.