Network marketing has had a bit of bad press over the years and has been unfairly linked by some to pyramid schemes. It is really unfortunate that a few disreputable individuals and companies gave the whole industry a bad name. These days, network marketing (or multi-level marketing – MLM) has evolved from a group of businesses that focussed on recruiting family and friends into your business model. It is now a modern, efficient business system that can be run and expanded almost entirely online.
The difference between pyramid schemes (which are illegal) and MLM is in the payment structure. Any business that pays someone a commission each time someone is signed up into the business in their ‘downline’ is a pyramid scheme. Such businesses are still around, and should be guarded against – as they often dress themselves up as network marketing businesses.
The truth of the matter is that MLM does involve the payment of commissions and performance bonuses – as do many, many other businesses. This is actually how money is made in MLM, so there is nothing wrong with that. In fact Robert Kiyosaki, author of the ‘Rich Dad’ series of books actively promotes network marketing businesses as one of the most exciting growth areas of the business world, and one of the best ways to get a home business started.
OF all the work from home ideas, MLM is potentially one of the most lucrative and exciting out there. The speed at which your business is built (and therefore the profits generated) is almost entirely up to you and down to the work that you do. To make your business more efficient, you could invest in mlm lead generation software – this will take the guesswork out of what is often one of the biggest stumbling blocks to the success of your MLM business.