MLM FAQs:

MLM is simply a distribution model. That’s it.
Instead of products being sold to wholesalers, the manufacturer has an independent sales force to sell the products via word of mouth. Instead of spending money on advertising, the company rewards the distributors with commissions for selling the products.

You can build a team initially by talking with people you know. Most people have a sphere of influence of 500 to 2000 people. In most cases, you will be able to sponsor some of these folks to start your team. As time progresses, you should utilize the internet, paid advertising, and daily prospecting to find new distributors.

You earn commissions and retail profits from your personal sales. And you earn overrides and commissions from your team’s sales. In essence, you are an independent contractor working as a salesperson for the MLM Company. Each compensation plan is different, but you normally get paid a certain percentage of your entire organization’s sales.

Yes, network marketing is legal in the United States and many other countries including inda. In 1979 Amway battled the Federal Trade Commission and scored a major victory for the network marketing industry. To be legal, distributors must focus on selling products and not get paid for the mere act of “recruiting” people.

You can with some companies. Most companies have a non-compete clause in the distributor agreement which prevents you from doing this. Also, I think it’s a wiser idea to focus your efforts with one company so you don’t lose focus.

There are close to 50 million people involved in the industry world-wide. The industry continues to grow because of the poor economy. Many people are now looking for a PLAN B to escape the rat race. In addition, the industry does more than $100 billion per year in sales. And I expect it will one day be a trillion dollar industry.

That depends.  I always tell folks to find a company with products and services they are passionate about AND offer a good deal to the retail customer.  If the items are priced fairly for customers, you might be on to something.  Also, you want to work with an established company, with a good reputation, a fair compensation plan and good company leadership. There are many good companies in our industry to choose from.

Both have their merits and what you do will vary based upon your goals and objectives.  In the beginning of your business, the immediate money is made by selling products, however, the real long-term money is in the team building.  I always tell folks to get five or ten customers before they start recruiting distributors.

This is a debatable topic.  Some folks say Amway was the first MLM Company (started in 1959).  Nutrilite was also a MLM Company and was about 10 years older than Amway.  Plus, Watkins is more than 100 years old and they had a very similar business model to MLM, where distributors could recruit other distributors.  So for simplicity purposes we will say the industry is 60 to 100 years old.

This is another debatable question.  Here’s what you should know.  MLM is not perfect. Neither is owning a traditional business.  Both come with some type of risk.  After all, that’s what an entrepreneur is: a risk taker. What I personally like about MLM is the low start-up costs, the ability to earn residual income, and that you don’t need employees, an inventory, or separate building.  Ultimately, you need to decide what business model is best for you and do that.

To succeed in MLM, you need to pick one company that you really love and stick with it for five to ten or more years.  You will never be successful if you just try something out and give up in 90 days.  You can’t switch companies every three to twelve months and expect to be successful.  It also helps if you develop a written business and marketing plan, find a mentor, schedule time to build your business every day, and focus on improving your skill-set and mind-set.  Whether you are building your business part-time or full-time, you need to make it a high priority.  You can’t wish your way to success.  The bottom line is you should treat your MLM Business like you have TWO MILLION DOLLARS invested in it.  Do that,  and I know you will succeed.