Multi Level Marketing, The Basics

Multi level marketing has been around for decades and has been used in some of the most successful companies around the world. In this article I will outline how multi level marketing works and what sort of business and products you should look for when thinking about starting your own multi level marketing business.

The basics behind multi level marketing are to be able to build a large business and reap the rewards from other people’s work that are in your team. Let’s break it down on how your business works into two categories; you join a company and usually pay a fee to have the right to sell their products for commissions. For the sake of this article we will call the commissions from your direct customer’s level 1 commission. You recruit people to become distributers in your business that also sell products; you also receive commissions on these products but at a reduced rate (level 2 commissions).

So the two aspects of the business are selling the companies’ products and recruiting people to sell the companies’ products. It is dependent on the company to how many levels they pay out; the good ones pay out until infinity. The basic idea as mentioned above is to benefit from other peoples work you can see that once you have built a network of distributers underneath you, you can simply live off the products that they sell.

In order to benefit from a MLM business you should look for a business that offers support and training regarding its products and how to sell them. A payment structure that gives continued incentives for your up line (the person that recruited you) to keep helping.

The product that you are selling must have a large market requirement and be re-usable. What I mean by re-usable is a product that has to be updated regularly or replaced. It would not be beneficial for you to sell rechargeable batteries but it would to sell normal batteries. You should look for a company that does not require you to buy stock as this is usually a bad business model and can lead into expensive costs.