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What are MLM Business Opportunities?

By Gerald Stidham Author


Everybody is talking about MLM business opportunities. What are they and how do they work? MLM stands for Multilevel Marketing; it is also known as Network marketing and Matrix Marketing. The concept began in the 1930's and has become increasingly popular in recent years.

This is how MLM business opportunities work: A manufacturer or service provider, instead of selling through normal retail channels, appoints independent distributors who sell his product from home, either by telephone, through personal contacts or via the internet. As well as selling the product, these distributors recruit a new level of distributors, who both sell the product and recruit more people in another level underneath them. Each distributor will receive commission not only on his or her own sales, but also on the sales of those at lower levels of his or her recruitment network.

At first glance, MLM business opportunities look like a sure way of making a lot of money with little effort. However, just like anything else, MLM can only work through a careful evaluation of the business proposition, and hard work and dedication in implementing it.

Why do MLM business opportunities have a bad name in some circles? It is too easy for MLM business opportunities to deteriorate into a mere pyramid scheme. Many have done so, and have given a bad name to the entire concept. Mathematically, a pyramid scheme cannot survive for any length of time, since before long there will be no more people to buy into it. Only those at the very top of the pyramid make money.

Before taking on MLM business opportunities, they should be evaluated carefully to ensure that it does not fall into this category.

Evaluating MLM Business Opportunities
MLM business opportunities will only work if the product is genuinely worth the money that the customer must pay for it, and if there is likely to be a continuing demand for the product. Healthcare products in particular are open to scams, since it is easy enough to throw together a few herbs and have people "testify" that they cured everything from arthritis to Alzheimer's. Take time to read up about the product and take expert advice if necessary. Many so-called MLM business opportunities rely on recruitment rather than sale of products in order to provide commission. These are classed as pyramid schemes and are illegal in many countries.

Look carefully at the literature provided. If it has ten pages of ecstatic testimonies from those who have grown rich, and only half a page of information about the product being sold, it is likely to be a pyramid scheme.

Take time to look at the network from all directions. Find out who sold the opportunity to your potential supplier. Find out who else this person sold it to. Then work downwards to people at the lower levels. Are they making money from the product? Is it easy to sell? Do their customers feel that they have had value for money?

A little time spent in research at the beginning can save a lot of heartache later.

Making MLM Business Opportunities work
Like anything else, MLM business opportunities take time and effort if success is to be achieved. Here are a few tips for a successful MLM business:

  • Take time at the beginning to know your product, and always set aside time for keeping that knowledge up to date.
  • Before buying into the program, you have to believe in the product you will be selling. Make sure that your network of distributors shares this belief.
  • Take time to learn good sales techniques. There are plenty of books and articles that you can read on this topic.
  • Learn the art of time management, and ensure that you market your product daily.
  • Set yourself short, medium and long-term goals, and evaluate your achievements against them.
  • Don't spend all your profits. Most of these should be reinvested back into the business.
  • Always follow up enquiries and any expression of interest in your product.
  • Train your recruits to follow all of these principles, and keep in close contact with them. Encourage and praise them when they do well.
  • MLM business opportunities can turn out to be either a recipe for disaster, or the opportunity of a lifetime. They are what you make of them.


  • © Gerald Stidham, All rights reserved.
    To your mlm success,
    Gerald Stidham
    http://vurl.bz/retirebiz/15707945

    Submitted on Feb 9, 2009