Understanding MLM Business Opportunities

The world abounds with MLM business opportunities. What is MLM, you’re asking. Multi-level marketing is a business model, where a parent company (as for example Amway, Avon, or Melaleuca) has an unpaid sales force, who do all the work, and are paid via commission, depending on how many sales they make to the customer…or how many other sales people they recruit to work for the parent company.

The people who work for the parent company are called distributors, or associates, or independent business owners, or consultants. The one thing that differs them from other types of businesses is that they don’t work for a salary, they work on commission. So if they spend eight hours a day trying to sell a product, and they can’t get the product to sell, they have nothing to show for that day except some tired feet.

Well, that’s the way it used to be. With the advent of the internet over a decade ago, it has become easier and easier to latch on to MLM business opportunities. for multi-level marketers to sell their wares online. It has become easier for people to network, and to find customers, and to exchange money for goods.

One way that MLM distributors make money is by forming a “downline.” What this means is that they recruit other people to sell the parent company’s goods, and each time their recruit sells a product, they get royalties from that sale as well. And if their recruit should recruit someone else, the first person also gets royalties off of that person’s sales.

Theoretically, MLM distributors therefore can make a lot of money and not actually have to do any work of their own – they have people who do that. In real life, there are actually very few successfully created downlines. Nevertheless, with the right parent company, such a network of moneymakers is possible.