Beginner’s Guide to Multi-Level Marketing (MLM)

Network Marketing, also called MLM (multi-level marketing) can be very profitable. Many companies operate in this way, for example Amway, Kleeneze and the Body Shop.

The main requirement for this business is to be good at selling. Don’t despair if you’re a shy wallflower as selling is a skill that can be learned, and in most network marketing companies you should be provided with plenty of training materials and help.

When you join a network marketing company there are two ways of earning money. Firstly, by selling the company’s products to the customer, you would then receive a percentage of the products you sell.

Secondly you can also recruit other sales agents, while continuing to sell the products yourself. You would then receive commission for every sale your agents make also.

Although this is a profitable way to earn money, don’t be fooled by claims that it is easy to earn money with little effort.

It can be possible to get into a position whereby you build a large network of sellers, who provide you with an income with their efforts, but you have to put in the work and it doesn’t happen overnight.

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If you are good at selling and are prepared to put in the work then this could be a very good way of making money.

There are a wide range of products available to make money. Choose a company whose products you like and perhaps would buy yourself, as this will make it much easier to sell.

Also make sure there are not too many agents for the company in the area you would like to work. This would make it difficult to sell a reasonable amount.

Try to find a proactive, experienced and helpful agent when deciding on which company to join. They will be the ones providing you with the most training and advice. Some agents provide regular training sessions and online forums to help and encourage each other.

Request information from several people or companies before making a decision.

You don’t need any qualifications to join. You will be trained by the company you join to sell the product you choose.


Once you have chosen the company you wish to sell for, you will need to purchase their basic kit – this can be as little as a short training guide and some catalogues, to a package of products, stationery, catalogues and training materials. You should not be required to buy the products yourself to sell on. It is common however, to be expected to pay for some samples of the products at up to $100 ($200).

It is then up to you to make contacts to sell the products. You can sell through friends and their friends, work colleagues, special events, schools (check first), holding a party, or anywhere you can leave a catalogue in their business or office.

To work in network marketing you will need energy and resilience and a tough skin to cope with the many rejections!

At the start you may only be making a small amount, but successful people with a big network can make $100,000 ($200,000).

However this is not common and the average earnings are around $5,000 ($10,000) a year.

MLM Software

MLM software is critical to your MLM success. Search the internet to find some. No entrepreneur should be without MLM software that can help organize contacts, send out marketing letters, e-mails and newsletters and in other ways make prospecting for leads and growing a client base of repeat business an ever-thriving venture.

Before you choose MLM software make the manufacturer or retailer prove that other MLM firms have used it successfully. Always do your due diligence.  You’re going to need a fairly robust and flexible business MLM software application no matter what its job. Multi-level marketing is very complex.

Ask for references and testimonials and verify them. You don’t need a massive number of bells and whistles but what you don’t want to do is spend a lot of time down the road converting all your MLM data to a new system because you failed to realize last year that you’d expand this much.

MLM Pyramid Scheme

MLM Pyramid Schemes are everywhere. If you’re serious about the idea of making money through a home based business, then do your research. A simple solution is to start with a business from home focused on good products and services.

The market is teeming with numerous startup businesses, unfortunately many are pyramid schemes instead of solid reputable businesses. Every single day new pyramid scheme comes into the market under the garb of legitimate home based internet businesses. Sadly, most of these so called top home internet business are pure pyramid schemes you should be wary of.

Pros

• If you are comfortable with selling and have or can make contacts you could persuade to sell to, you can make good money.
• Good way of meeting people.
• Flexible working hours.
• Help, training and encouragement from your upline (the person that you joined the networking company through)
• Ready-made business

Cons

• Lot of time and effort required.
• Could lose friends if you try too hard to sell products to them or try to make them become agents too.
• Start up costs (although usually relatively low – less that $100 or $200)
• Must be good at selling, or be willing to learn how to sell.