We've been exposed to MLM (Multi-Level Marketing), also known as Network Marketing, but do we really know the one that is presented to us is the right one for us. MLM is by no means confined to the online world; in fact it has its roots long before the internet. Some very large and successful companies were built on, and continue to thrive, based on a MLM network model.



Here's how it works: a company sells a product or service through a vast network of independent distributors that sell at retail prices. The distributor usually pays some sort of joining fee or has to buy a certain quantity of the product to gain distributorship status. All MLM network marketing companies work with a solid business foundation. The best way I was able to view being a distributor was that I was a franchisee for a particular company, and in essence the company has allowed me to have my own business selling their product or service. Not only are you confined to being a distributor for a particular product of service, but there is also the ability to find others who are interested in your particular product or service and recruit them as new distributors.

As you're building your network, you are building your business. The network urges distributors to bring in other people to act in the same capacity. Thus, for bringing in new distributors, the company compensates you with commissions on the products that the referred distributor sells. Also, if the distributor that was referred also brings in other distributors, the original distributor receives commissions on those sales as well and so on. This is the "Multi Level" component. For most people wanting to get into these kinds of businesses, the attraction isn't so much in selling the companies products; it's the conversion of buyers to distributors. This can be a rewarding business for a distributor and the referred distributors.

If a person is considering an MLM network opportunity, the following questions need to be asked:

1) Who is your upline? This question goes all the way to the top of the network. Get to know the entire upline just like you would a business partner you'd never met before. You want to know who you are doing business with.

2) What is the product? Become an expert on the product and/or service that's being offered to clients. Know the competition as well.

3) When will you start actually making money? Don't fall for the line that it takes months or even years to show a profit. You should be able to recoup any investment and start earning income within just a few weeks if there's really demand for the product. Making a living at it is another story.

4) Product promotion? What restrictions are there on where and how the product can be promoted (advertising, web sites, etc.)? There's not a right or wrong answer to this question: an open policy is a more flexible situation.

5) What was the recruitment method? Were you told about the product or service you will be distributing, or were you just approached about the opportunity?

6) Why pursue this MLM network opportunity? This the most important question of all. Don't focus on the short-term earnings; the potential marketer should concentrate on the long-term goal.

There are no right and wrong answers to these questions concerning a MLM network opportunity. You need to make sure that everything is on the table. Many people have made a lot of money in MLM networks, but many more have ended up wasting a whole lot of time and money chasing a false dream. Do your due diligence when evaluating MLM network opportunities. Know your product or service, know the company, and know your upline. Also focus on your goals, and you will achieve them.