What You Should Know About MLM/Network Marketing

There is no other industry that has as many myths, fallacies and misconceptions about it as Multi-Level Marketing. The industry has numerous names – MLM, Network Marketing, Referral Marketing and People to People Marketing. Many companies refer to themselves as Direct Sales Companies – such as  Avon, Tupperware and Shaklee. In fact, in recent years the growth of the highly respected industry association, Direct Sales Association (DSA), is attributed to new members from the MLM Industry.   

  

In my articles, I will call this industry Network Marketing, MLM, or Multi-level Marketing. The purpose of this section is to help you understand the pros and cons of this huge – over 20 billion dollars – industry. EVERYTHING has pros and cons, and my intention is to give you enough information to decide if it makes sense for YOU to join the millions of people worldwide who participate in MLM, either part or full time. And if so, what would be the right company for YOU.   

  

The information, based on research and my personal experience, will clear up many of the incorrect beliefs and opinions, both positive and negative, about the industry in which I earned over $35,000 a month.  

   

Now, let me define a few words: distributor is someone who joins an MLM company to buy the products/services and sponsor others who do the same.  A distributor is also called associate or dealer in some companies.  

   

Sponsor is the person who brings you into the company. Your upline are the people above your sponsor in the same organization (organization is sometimes called “leg”). Your downline are the people you sponsor, the people sponsored by your distributors, and all the people below you in your organization.  “Above” and “Below” does NOT mean “status” – it has to do with when you join the company, and which organization you are part of.