What is MLM / Network Marketing?

Any time you sign up others and make money from their efforts as well as from those they sign up, you are in network marketing. Some call it MLM (multi-level marketing) and some call it direct sales. No matter what it’s called, it’s still the same.

I do have to laugh at the whole “direct sales” thing. Direct sales is when you sell your products / services to others and get paid a commission. Any time you have recruiting or sponsoring of others where you get paid on their efforts, you are in multi level marketing. SURPRISE!!! People have been lying about this for years.

Network marketing / MLM is a legitimate way to make money.

With that said, there are some caveats.

1. If an MLM company has no real product or service, it is a pyramid scheme, not a viable MLM opportunity.

2. If the only people purchasing products or services are the reps, it’s not a legal MLM opportunity. The government has stated that sales must occur to people who are not part of the multi level structure. If you have to sign people up as reps so they can buy your products, you are in an illegal MLM opportunity.

3. Would you buy your products or services at full retail if there were no business opportunity involved? This is a standard test that the government does when looking at network marketing opportunities. Ask yourself that. Go look at the retail price (not the rep price) for your products. Would you pay that price for them if there were no business opportunity? Most companies jack up the retail prices to make it easier for reps to talk people into joining to “get the good prices.” Is that your company?

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Today is the first day of the rest of your life.
What will you do with it?

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