What The Heck Is A MLM Business?
If you are looking for online business opportunities, the chances that you come across the term MLM are rather large. MLM’s are everywhere, but to a person to the online business world, this leaves one very large question: What the heck is an MLM business?
What Is A MLM Business?
MLM stands for Multi Level Marketing, which pays their entrepreneurs mostly via two strategies – selling products or services, AND by recruiting other people into the business and often allowing them to get a share of the profits of their recruits. The term Pyramid Scheme is often related to MLM business opportunities, and while not all of MLM opportunities are scams, some of them are, so you should be vary about signing up for just any of these types of offers.
Examples of MLM Businesses
You have most likely heard of many companies, who are essentially following the MLM business model without realizing that they are. Some of them are not only established but have quite a good reputation. Here is a list of examples:
Amway (health, beauty, and household products)
Avon (beauty products)
Usborne Books (educational products)
NuSkin (skin care)
Herbal Life (health and nutrition)
Mary Kay (beauty products)
It Works! (skin care and nutrition)
Scentsy (candles and scents)
Ambit Energy (electric and natural gas)
Advocare (health and fitness)
As you can see, MLM businesses are found in a variety of niches and are often well known.
Some of MLM companies are not legit and offer little to no value to those who they are trying to recruit. While not everyone will have the same results or experiences I have had with some of these companies, I will over the next few weeks try to highlight those who work and those who did not work for me.
1. What training do they offer?
The quality of training of these companies varies greatly. Some offer continuous training opportunities, and valuable information, that can help you build a thriving business, while others will leave you with a simple PDF that has nothing to offer.
Related Article: How To Become A Successful Affiliate Marketer
2. Upfront and continued cost
Almost every MLM has upfront costs, which in itself is not a problem. But many of them either do not give you valuable information or products in exchange for your money, or will ask you to pay a continued fee, and other payments, that promise more results. Make sure that you are informed about all costs – those to get started, and those who are continued costs.
3. Their focus is on recruiting not on selling
If the companies products are great, and worth their price, they tend to not push those signed up through their programs to push for new recruits, at least not right away. Other companies, however, push more recruiting, then selling, which should set off your alarm bells. These are very often not legitimate companies.
4. Lack of quality products.
Any good MLM company will allow you to sample their products and showcase their quality. If the product is not up to high-quality standards, don’t sign up. Avon, for example, is known for their high-quality products, and it is easy to find someone who had good experiences with the company.
MLM business opportunities are not all bad, as some want to make you believe. But, in order to make these types of businesses profitable for you, you must do your research.
I personally suggest that you should diversify your online business, by using a variety of passive income models, such as affiliate marketing, drop shipping, or Kindle publishing, as well as working with MLM companies.
Watch out for more detailed reviews on specific MLM companies, over the course of the next few weeks!