MLM, which is an acronym for Multi Level Marketing, is an amazing success formula for working from home, using the POWER of the Internet and achieving your personal and financial goals!

There are literally hundreds of companies which utilize this business model to move their products from production to the consumer and my goal in this article is to provide you with the simple facts on what this industry IS and what it is NOT!

With the information I will provide in this article, you will be able to make an informed, educated decision as to whether or not this business concept is right for you.

Multi Level Marketing is simply a business system for moving products and services from production to the consumer using independent distributors with a multi level commission payout plan.  Since distributors can recruit other distributors and establish teams that work together, this business model is often also called Network Marketing.

Unfortunately, many people do not understand how multi level marketing programs work and believe that they are some sort of illegal pyramid or scam.  Nothing could be further from the truth for legitimate MLM companies.

First, understand that MLM is not an illegal pyramid scheme.  It is  100% legal and many multi-million dollar companies market their product strictly through MLM promotion.

Many Multi Level Marketing companies have been around for decades.  Some of the better known MLM companies are Shaklee, Tupperware, Mary Kay Cosmetics, Amway, A.L. Williams (Insurance), Princess House (a subsidiary of Colgate Palmolive), Melaleuca, MCI, U.S. Sprint, and NSA.

There are hundreds more MLM companies and just like other companies, some are good and some are not so good.  But MLM is certainly here to stay and it is an explosive growth field!  In fact, increasingly you will find more and more Fortune 500 companies employing the Network Marketing business model for some portion of their marketing portfolio!

So what’s the big attraction to MLM companies and programs?  Well, it represents a wonderful opportunity for the “little guy” to start his own business on a part time basis and make a whole lot of  money provided he or she is willing to put in some work!  This is not a get rich quick scheme and work is involved, no matter what some MLM recruiters would like you to believe.

John Paul Getty is often quoted as having said that he would always prefer earning 1% of a hundred peoples efforts than 100% of his own efforts.  And that is precisely what Multi Level Marketing is all about.  The Multi Level Marketing sales force members are not actually employees of the company, but instead they are independent distributors who are compensated for their efforts by commission based on the amount of product moved by not only themselves, but also by those whom they recruit as distributors.

The term “multi level” comes from the process where by one distributor recruits other people to become distributors and the new distributors are placed under them in what is known as a downline.  Each distributor is paid a retail commission on the products they sell themselves, and a wholesale commission on the products their downline sells (down to some designated level).

The more recruits a distributor can get under them, the larger their downline and therefore the larger their total commissions.  How many levels a distributor can earn commissions from in their depends upon the particular company’s compensation plan.  Five to seven or more levels is not unusual.

A strong incentive is thus created not only for a distributor to recruit more distributors for their downline, but also to train them to move products as well.  Thus a successful distributor will want to duplicate their success by teaching their downline members how to be successful.  By making their downline members successful, they make themselves more successful.

Those who can successfully recruit, train, and retain can create small fortunes and develop a large stable residual income that will support them for years to come.  Although not easy, it can be quite rewarding.

In fact, millions of people are earning a solid income from the comfort of their own home while being their own boss.  With MLM, you don’t need an expensive office anymore.  A telephone, basic computer, fax machine, a HUGE ambition, and the knowledge of how to proceed to grow your business are all it really takes!