Guide to Understanding Multi-Level Marketing

Thomas Wallace

Teacher, football coach, online marketer and cancer survivor. Degree in Business Management and an advanced degree in physical education and athletic psychology and exercise.

"What doesn't kill you makes you stronger." Avid bicycle racer in my twenties and thirties. Realized I had to keep pedaling to finish the race! I use that logic in everything I do.

I'm truly thankful for all the people that have helped me along this journey! I make sure I do the same for other people.

"You can have everything in life, if you help enough people get what they want." -Zig Zigler

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Multi-level marketing or mlm has sparked lots of controversies over the years. It has become increasingly linked to scams and false promises of huge profits. Nonetheless, this marketing strategy has gained popularity because of its many attractive features. This type of business practice has been around for decades. It has a huge presence in general commerce around the world. It is even considered as one of the most basic business practices.

It only became associated with scams due to unscrupulous business practices of some stakeholders that chose to use the benefits for their own selfish ends.

What is Multi-Level Marketing?

The multi-level marketing strategy is a legitimate strategy for business. This multi level marketing on a computermethod is often used by businesses that operate through direct selling. This strategy encourages product distributors to get others to recruit others as new distributors. With each recruit, the distributor gets a percentage from their recruit’s product sales. This is the main feature of mlm. Profits come from the distributor’s own sales as well as from percentages of their recruit’s sales. Recruits are more popularly known as down lines. For each down line, the distributor gets percentages from their profits.

Often, 1 or 2 persons establish a business. These partners reach out to the larger population to find people to join their business venture. In exchange for the membership, incentives are offered. These incentives increase as more people get invited into the business. People who enter the business contribute money into the company, either by buying products or paying membership fees. Thee members also work for the company by inviting others to join and contribute more money.

How to Make Money with MLM

Signing up with companies that use this strategy can be profitable. Here are tips to help in earning honestly from this business approach:


Multi-level marketing has been under much scrutiny. Most people view these companies as not to be trusted. This is because of a few companies that take advantage of the opportunities this marketing strategy offers just to earn money at the expense of the hard work of others. Be honest when dealing with people. Deliver what is promised and do not give false assurances just to get people to join and invest.

Reasonable Goals

Setting goalsSome multi-level marketing companies do business with people with honesty. However, they may come out as unscrupulous and dishonest when they fail to deliver their promises. One cause is setting goals that are too high, promising unreasonable profits. And when they don’t deliver, they are regarded as scammers.

Keep goals within reasonable limits. Do not promise the moon and the stars just to get more investors.

Real Incentives

Incentives are the driving force in mlm. Some companies use high pressure spiels Money sitting on a computer keyboardjust to get people to buy into the business plan. This may have been successful in the past but the promise is often unreal and difficult to attain. Create unique and creative sales pitch to get people interested. Give facts and figures. Convince people by giving them sound and attractive reasons why they should join and not over-the-top expectations.

Multi-level marketing in itself is profitable and legitimate. As with any business, the practices and values embraced by the company will determine its legitimacy.

Have A Great Day!

Thomas Wallace