If you have wanted to start a home based business for a while, then you’ve probably taken a good look at MLM. But what’s hard about trying to get information about this non-conforming industry is that everyone seems to have very different opinions about it, whether or not it works and if it’s really even legal. So I set out to write this post to maybe help clarify some things in the hopes that it may help some people understand the business of MLM a little better. So here goes…
MLM is a simple and completely legal form of business. It pretty much works like this. You have a product that you market and while you’re doing that you’re also building a team of more people who want to market that product. By building a team of people who are marketing the products for you, they make money and you make money.
This all sounds simple enough so why do so many people believe that MLM is a scam. I believe it’s for two reasons:
1. It costs money to get started in almost all MLM companies. This causes a whole lot of confusion for people who are used to having jobs. A home based business like MLM is just that… A BUSINESS! It’s NOT a job and I believe that’s where the confusion really lies. Jobs don’t require any investment to start, but businesses do (although the investment required to start an MLM business is usually very small). Many times it is not the cost of signing up, most companies have very low sign up fees, and many are even free to start. But often it is the cost of some basic marketing materials and advertising you need to purchase. So if you are going to be involved in MLM you need to be aware of the fact that you’re going to be starting your own business.
2. MLM is almost completely driven by commissions. Commissions from the products you sell and overrides from the sales made by people in your organization. So if you’re not working you’re not going to make any money. Unlike a job where you can show up, do very little and still get paid. (at least for a while before they fire you! )
So when you combine those two things, the fact that you have to invest a little to get started and the fact that your success is not guaranteed if you don’t work, people tend to get confused and call it a scam. But it’s really not at all.
In fact if you are looking for a way to make money from home and have an unlimited income there is no better way of doing that than starting an MLM home based business.
--Aziz Jangbar
“A free lunch is only found in mousetraps.” ~John Capuzzi
