Multi Level Marketing (MLM) is the dirty little secret of Internet Marketing. It is advertising gone bad and gone off to meet the rough kids behind the bike sheds for a smoke. It would be fair to say, though, that a good MLM is an accomplished selling strategy that provides definite returns. It is a fairly simple model that has existed for years: a parent multi-level marketing company will sell market their products/services directly to consumers by means of relationship referral and direct selling.

It is also fair to say that MLM is not dissimilar to a pyramid scheme in the same way stealing is not dissimilar to theft.

In MLM schemes independent nonsalaried sales representatives of the parent company are rewarded a commission relative to the volume of product sold through each of their independent businesses or organisations. These sales reps will ideally develop their organization by building an active customer base who will buy direct from the parent company. This builds direct relationships and is a positive side to MLM. The other option is for the Sales reps to create a waterfall of independent subsidiaries who also build a customer base, expanding the overall organisation, which, in turn, can employ independent subsidiaries who also build a customer base, expanding the overall organisation, which, in turn, can employ independent subsidiaries… In the perfect MLM/pyramid, everybody will be selling everybody else the same product and getting rich because of it. This is by far the easiest way of getting an economy like Albania’s.

These quasi franchises will return profits both to the initial product/service supplier but also to every rung on the ladder back to the original company. In this situations there can be enormous loss of profit towards the bottom of the chain; it rolls down hill is the adage here. In these circumstances, it is not unknown for sales tactics to push the boundaries of the law. In fact, the boundaries are often ripped up into little pieces and posted back to the authorities such is the disregard for law or morality.

The fact that these MLMs are in existence is because it is very hard to distinguish between the legitimate and the illegitimate. Defenders of the MLM format will say that it is illegal pyramid selling schemes portraying themselves as MLMs that are the problem, and to a certain extent they are right. In the most legitimate MLM companies, commissions are earned only on sales of the company’s products or services. If participants are paid primarily from money received from new recruits, or if they are required to buy more products than they are likely to sell, then the company is a pyramid. But, what is the difference between an ambitious seller who thinks he can sell ?30,000 worth of double-glazing (say) and a useless sales rep who buys ?30,000 of prospective sales with no hope of hitting the target? Herein lies the question – or more specifically a big fat payday for the lawyers.

As a basic rule of thumb, any MLM that offers more money for recruiting than for actually selling the product will be of dubious origins. There is also an association with near fanatical levels of training and corporate banter. Viewers of BBC’s Rogue trader will be familiar with the training tactics designed to fleece unsuspecting elderly people out of thousands of pounds. Indeed many critics have compared these training and sales regimes as akin to cults – many MLM programs feature intense motivational programs, which can be hard to distinguish from cult propaganda.

By and large, if someone comes round to your house and says that it will collapse unless you have your walls covered in “Flake-No-More” paint which he just happens to sell at ?10000 per treatment you have encountered a pyramid MLM. In which case you phone up the BBC or just kneecap the bugger.

That written, if you have service/product and are only this way-that way about eternal damnation MLMs are a very good way of ensuring you make money without actually having to do anything. In this case, make sure you have at least 2 passports, an offshore clearing account and access to a small local airport.

When deciding how to set up my online business, the first thing for me to consider about a multi level marketing system, is that I don’t have to be the superstar in order to be successful. I only need to have a superstar in my team!!! The question then becomes, how do I attract a superstar. Let me tell you a story…

My history in Direct sales was that whenever I was helping someone else or training new people, I was always on top of my game… The problem was, my inconsistency back then prevented me from becoming a regular team leader, I never performed well when I was out on my own, I needed other people to bounce off… Direct sales was very much everyman for himself where I came from although the supervisor did get an override on commission for being the one to take out the car.

Multi level Marketing however is a completely different model. Multi- Level marketing is all about building the team because the more money the team make, the more money I make and the more money I make the more money the team makes.

People often call it pyramid selling and have a negative attitude around it. The theory goes that it’s only the people who get in first that make the money. It’s true that when a company is first launched there is a lot of money made very quickly as a new product enters the market… These are fads, and, while a living can be made from them it is always short lived because the next fad is only just around the corner!!

I would suggest when looking at a multi-level marketing system that you do your due diligence thoroughly. I was shocking for falling across an opportunity and looking for the reasons why it should fit… I was convincing myself because I was desperately looking for a shortcut to wealth and wanted so badly for this to be “the one ” that made me!!!

After much money spent and numerous failed attempts, I decided to wise up. I accepted that there is no short cut to wealth, that every goal has its process and in fact, it is going through the process that gives me the fulfillment.

So today my business is not built around the latest fad or miracle cure, today my business is based around Education and helping people to awaken to the life they deserve. Today my business is not about Get Rich Quick, it is all about building wealth steadily. Today my business is not about what I can get and what’s in it for me, today it’s about what I can give and where I can add value.

I’ve got a Real business today, with multiple streams of income plugged into it. The products we promote make a real difference in MY life, that means that I feel comfortable sharing them. I once wore a badge that said ” Lose weight now, ask me How!”… I had never been over 74kg. I didn’t have a clue how to lose weight, my problem was that I couldn’t put weight on… I wouldn’t buy the products myself but It didn’t stop me from trying to sell them to others!!

Today, I am a product of the product, I am doing the courses we promote and I’m reaping the rewards, today I don’t look for the sale, I just have a conversation… I’m not here to sell anything… If I”m a product of my product and my product is that good, then I have nothing to fear, All I have to do is to keep going, to keep talking and to keep adding value and my success will continue to grow… the number of people whose lives I touch, will continue to increase and the difference that I am able to make in the world around me will continue to improve.

Multi-Level Marketing cannot be dismissed as a business model but it is Not the only option when looking at a home based business, there are many more…

While many people may think that the MLM business is complicated, you simply have to look at where the money is going to come from and know where you should be concentrating your efforts. The first thing you should concentrate on in your multi level marketing is how you can earn more residual income.

Increase Your Downline
One of the first ways to increase your residual income is to increase your downline. As your recruits sell more products, you, too, will earn a portion of those commissions. To recruit more members into your downline, be honest and upfront about the opportunity you are offering and listen to what your prospect is looking for. While your business may be everything you’ve ever dreamed of, you will find it is not the ideal company for everyone and you want your downline to be filled with members who are a great match.

Encourage Them to Increase Their Downline
As you spend time with your downline, offer them the encouragement they need to increase their own downline. For many people, recruiting is the most difficult aspect of multi level marketing. Role play with them to help them improve on their recruiting skills and you will earn more residual income.

Get Those Repeat Customers
One of the best things about multi level marketing is the relationships you build with your customers. Most MLM companies offer products that will need to be purchased over and over again. Building a strong relationship will get you those repeat customers that will help you to earn more residual income.

The multilevel marketing business is not one that should be taken lightly. Keep a professional demeanor when dealing with your customers and prospects and you will find that they, too, believe that your business is professional. In the long run, maintaining a professional business is what will get you the residual income you need to help build your business stronger.