What Is A Multi Level Marketing

Updated 21st September 2019


The Multi Level Marketing  –

Scheme or Dream


The reality of the highly debated business model known as Multi Level Marketing.


What Is A Multi Level Marketing


What is multi level marketing – Multi-Level Marketing (MLM) is a very highly debated topic.  Ask one person and they will say its all a complete scam.  Ask another person and they will say its the greatest thing in the universe.  One person will say, “MLM didn’t work for me” and the next will say, “I made millions from my MLM business!”


Well, here is the truth behind Multi Level Marketing

MLM in and of itself is not a scam, scheme, or anything of the sort.  It is a very legitimate and powerful way to do business.  In fact, almost every business has at least some aspects or resemblance of an MLM, whether they admit it or not.


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The problem is that people have a tendency to believe that joining an MLM opportunity is some sort of magic thing where they will not have to do very much.  They can just sit on their butt and get rich in just a couple of weeks.  When that doesn’t happen they tell everyone they can just how much of a scam every MLM in the world is.


The reality is that if they would have just spent as much time actually putting effort in to their MLM business as they did bashing it afterward, they probably would have made a lot of money.


These days most people have a negative view of multi-level marketing simply because they do not understand it, or they don’t fully give it a chance. They just listen to someone they know who says, “MLM doesn’t work”.


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Guess what?…


No business in the world, MLM or otherwise, “works” or “doesn’t work” ….it is the business owner that has to put in the proper time and energy needed to make it work.


With that being said you do still need to be careful and do your due diligence before joining an MLM business or any other “opportunity” of any kind. Why? Because there are so many people out there with pyramid schemes who are just looking to make a quick buck off you by scamming you.


Just remember… if you do have a bad experience… it was not “Multi-Level Marketing” that was the to blame. Instead it was most likely that particular company, or lack of effort, or an individual scam artist, or something else along those lines. You can be sure that MLM in general was not the problem!


So remember… MLM is not a scheme, it is a very pleasant dream! A dream that will come true if you are willing to pursue it with dedication and commitment.


MLM Opportunities Home Based Business


If you are considering an MLM as a home based business it could be a very lucrative home based business option for you.  But you should also know exactly whether or not what you are getting into is truly an MLM home based business or a pyramid scheme.  Plus, you need to weigh out the positives and negatives of an MLM home based business before you decide that it’s the right business for you.


mlm opportunities home based business


Making sure you are actually getting involved in an MLM home based business, or multi-level marketing home based business is important to save yourself some difficulties later. An MLM home based business involves the direct selling of products or services through the recommendations or endorsements of independent representatives.


So, if you are the representative, you receive a commission on any sales that came from your endorsements.  Also understand that most products sold through an MLM home based business are not necessarily advertised through mainstream media or in stores.


Legit Work At Home Jobs For

Multi Level Network Marketing


The confusing part of determining if your MLM home based business is legit is that there are a number of pyramid schemes out there that are dangerously similar to legitimate MLM home based business concepts. Remember, a pyramid scheme is illegal, and getting involved in one can cause you more trouble that its worth.


what is a pyramid scheme about


You really need to do your research into any MLM home based business that you’re considering so that you’re sure the MLM home based business you’re going to run is valid and legal.  Usually if your investment is proportionate to the product or service you are selling, your MLM home based business will probably be valid.


There are a number of advantages to having an MLM home based business. First of all, you will be working from home where you can virtually set your own hours, which is probably why you are considering an MLM home based business in the first place.


Also, you will not have to manufacture any products, because you are usually selling things that are already made, and the MLM home based business will usually come with a pre-determined marketing plan.


Many people suffer through the process of determining the most effective methods for marketing their products, but with an MLM home based business, you are relieved of that stress.


The disadvantages of having your own MLM home based business, though, depends a bit on your personality.  If you have good leadership skills and are a self-starter, then an MLM home based business will pose little hardship to you. 


However, if recruiting and selling gives you nightmares, then starting and maintaining an MLM home based business may be more of a challenge, since your success depends on your ability to create a downline of recruits.  You can do this via an Optin List and emails.


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Still, having your own MLM home based business means that you can live out your dream of being your own boss and having flexibility in your work schedule. You do not need any prior experience, and you can rely on your personality to recruit and maintain your downline. 


Still, do your research to make sure your MLM home based business is a legit and legal business so that you can truly enjoy the freedom that the MLM home based business offers.


Lets finish this article with…


Mistakes to Avoid In An MLM Business


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For the many people new to the MLM business, or for veterans who have yet to realize success in the industry, recognizing and correcting four detrimental yet commonly made mistakes can make all the difference.  Today, we will look at some of the mistakes many in the MLM business make and what you can do about them.


Mistake 1

The first mistake practically everyone makes in this industry is trying to sell.  We are in the teaching and mentoring business.  If we are doing this right, we are building relationships, not trying to get people into our deals. 


People can feel the difference when you’re talking to them and trying to sell them.  They don’t like it.  Neither do you! You don’t like to be sold, and you don’t like the feeling you get when you’re trying to sell something.  It doesn’t sit right deep down inside.  So stop it!  Build relationships, and success will follow.  That is key!


Mistake 2

Not checking the background of your company leadership to make sure that they have MLM experience, with integrity, is another mistake.  Why does this matter, you ask?  Well, do you want to build this once, build it big, and build it for your children’s children?  Then you better make sure that the people running it know what they’re doing and respect the guys and gals in the field who are building it. 


The best way to do this is to read your company’s policies and procedures.  Some of the things you will find there will make you scream!  When you read them, you’ll realize who you are really building the business for and it’s not you!  Please, please, read the policies and procedures!


Mistake 3

Not knowing how many people it takes to earn the income you want is a huge blunder. Do you want to make $10,000 every month? Okay, then how many people in your organization does it take, on the back end, to make your goal? How doable is that? Are you having trouble just keeping 10, 20, or 30?


In most compensation plans to make $10,000 a month, you would need anywhere from 1,600 to 5,000 people, depending on how your plan is set up. How doable is that when you can’t even keep 30? 


I know of a compensation plan out there that requires less than 400 people to make $10,000 monthly.  How much easier do you think it is to keep people in that plan?  Pretty easy, I’d say.  So make sure you know the numbers, then crunch them to see how doable it is for you.


Mistake 4

The final mistake that many MLM distributors make is going after their friends and families.  Unfortunately, a large majority of companies out there employ this “technique” as their primary source of lead generation.  Ouch! 


Let me just tell you from personal experience that your “warm market” is the coldest out there!  If you’re in a company where this is the primary source of lead generation, you are in for a hard time, my friend!  This technique does not work.


The best leads are the ones you generate yourself, and if your company, team, or upline doesn’t have a system in place to do that, it’s going to be very tough.


These are just a few of the mistakes many people make in a MLM business, but with some basic skills and a good system in place, these mistakes are avoidable.  If you are having difficulties, take a good look at these mistakes and see if you’re not making one of them in your own MLM business.


How To Start An Internet Marketing Home Based Business


Before I finish let me point you in the direction of a great program where you can get fantastic training and free websites to get you started building your MLM empire.


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All you need to do is click on this link and you’re taken to a web page with lots of information to help you decide whether MLM is the way for you to earn an income from the internet from home.


I wish you nothing but success and please do visit my site again for more tips and advice on working from home.


One thing more, could you spare a couple of minutes and leave a comment below with you own thoughts on marketing online, or just working from home in whatever area that interests you.


Have a great day folks.


Robert Allan

Hello I have been an affiliate/internet marketer for many years and I'm very successful at it. If you need any help and pointers to earning an online income from home or to start up your own home-based business then please feel free to read the other articles within this site. I'm sure you will go away with lots of tips and advice that will help you get started. Here is a link to my About Me page - http://quickwaysmakemoney.siterubix.com/about-r-allan This other link is my profile within the work from home make money online community I am a member of since 2014. https://my.wealthyaffiliate.com/robert-a


Add a Comment
  1. Hi Robert Allan,

    This is a great informative and educative article about MLM marketing. I have not ready so much information about it yet. After reading your article, I have got a great concept about Multi-Level Marketing and it’s the opportunity. But I also understood that those type of MLM marketing opportunities is most of the time real scam. I will get a perfect idea about what is real MLM and Fake MLM. I am going to share it with my other’s friends and family members. Thank you for writing this helpful article.

  2. Hi Robert,

    Thank You very much for sharing such an informative article with all the necessary information about “The Multi Level Marketing”

    Really this is an amazing article. I like this article very much and a very informative article for me. I had heard a little about the MLM and my opinion was negative about this. I thought that this is a scam but after reading your article my eyes are opened. I have learn that this is a 100% legitimate by which one can do a business and can be successful. It is a powerful way to earn money. I have also gained all the details of this MLM. I am very interested to join this program as a lucrative home based business option for me. This article is very helpful for those people who want to know all about The Multi level Marketing. I am going to share this article with my friends and relatives so that they can benefited from this.

    1. Hello Mhasanalvi
      Thank you for reading my article.
      MLM does get a lot of negative reviews simply because people do not fully understand how it works and how they should work with it and therefore earn an income from it.
      Once they do understand how to work with MLM then of course its like any other online marketing program and you have to put in the work to reap the rewards.
      Please do share it with your friends and relatives and who knows but they will like the tips and advice I have given and go on to make money from MLM as many people already have done.
      Have a great day and be successful and please do visit my site again when I’m sure you will go away with lots of great information that will help you with your own online efforts.
      Best Regards.
      Robert Allan

  3. Hi Robert Allan,

    I learned a lot after reading your great article on multilevel marketing. I did not know so much about this matter before. I knew that most MLM marketing programs are pyramid schemes. Only some MLM marketing companies are genuine and follow the rules. Comparative thorough discussions of the MLM and Pyramid schemes encouraged me to know more deeply about this topic. I am planning to work in the right MLM marketing company in the future. Thank you for presenting this beautiful informative article.

    1. Hi Mzakapon
      Thank you for taking the time to read my article on MLM.
      Its great you have taken the information onboard and hopefully you will act on it for your own online home business.
      Now you must do more of your own research and find a good MLM program that you know is legitimate and will earn you an income.
      If you need any more pointers then please do get in touch.
      Have a great day and be successful.
      Robert Allan

  4. Hello Robert,
    I learned a lot reading your valuable reviews about The Multi-Level Marketing. In addition, some of my previous misconceptions about MLM business have changed. In 2004, an MLM company named “Destiny” had some business here (India). But suddenly they closed their business without any notice and went overnight. Then many of consumers fell in great distress. This was my bitter experience of MLM. Anyway, I got the benefit of knowing above the effective information mentioned in the review. Thank you very much for the excellent article.

    1. Hi Rgpratap and thank you for your visit and your comment.
      I remember Destiny and yes a lot of people lost a lot of money.
      Lessons learned I hope and you don’t lose money.
      You wont as I said to another person who commented if you can find a mentor.
      Someone you can follow and learn from.
      There are other articles within my site that you can learn from to earn an income online if you are still not convinced you can with MLM.
      If you need any pointers then drop me a line or two via the Contact Form on the right side of this page.
      I wish you much success.
      Robert Allan

  5. I am very glad to see a practical review on Multi Level Marketing out of thousands of post I read over a month now. Thumb up for the efforts behind this wonderful review. My first start with online business was with a Multi Level Marketing platforms but all with experience is 80% scam out of 100%. This is really disheartening as people really find it difficult to join MLM platform nowadays including me. I really like that it one of best way to build a traffic for a business or platform with little incentive of referral bonus. I really find this article helpful as it reveals more hidden information to me and some mistakes to avoid. I will apply this tips to my next MLM platform am building up soon. Thanks for sharing this helpful information.

    1. Hello Topazdude (cool name by the way)
      Thank you for your visit and your comment.
      Unfortunately the internet is full of scams and scammers out to get your money.
      As I have told other commenters its a good idea to find a mentor who has a lot of experience with Multi Level Marketing.
      They will be able to steer you clear of the scam programs and keep you on the right track away from mistakes you could make if you don’t have a lot of experience marketing online.
      Its good you have taken away my tips and advice and therefore you will have a head start on others.
      I wish you much success.
      Have a great day.
      Warmest Regards.
      Robert Allan

  6. Thanks for sharing this article on the multi level marketing. I appreciate your carefully explained review on MLM. But I must say that I have participated in many MLM that I ended being scammed. I have lost huge amount and believe same goes for other people too with experience in MLM. Your article on MLM took another shape in my mind. Maybe most people that establish MLM business also fell into the mistakes you explained. Maybe I will have a change of heart toward MLM. Thanks for sharing this article. 

    1. Hi and thank you for reading and commenting.
      Its kinda par for the course you have been or will be scammed.
      You just have to put it down to the learning curve and try and find a legitimate MLM program.
      Even better find someone you can follow and learn from.
      The four mistakes I have outlined in the article are in my opinion the ones you MUST try and avoid but there are a multitude of little ones you are sure to make as well.
      As I said try and find a mentor you can learn from and do your due diligence with research.
      Don’t just jump in and follow all those bells and whistle sites.
      You get stuck then get in touch and I will do my best to point you in the right direction.
      Have a great day and I really do wish you success.
      Warmest Regards.
      Robert Allan

  7. MLM has got a bad name for its self and I say that not because it has but like you say, this is how someone who has tried this type of business and failed would see it.  I am guilty of just that making money online isn’t easy but I would expect it to be fun.  Any business requires hard work, this doesn’t matter what type of business.  You must work hard to achieve your goal.  MLM  seems to have more to offer, than I would have given it credit for.

    1. Thank you Derek, I replied to both with one comment.
      Have a good one.
      Robert Allan

  8. I must admit my first words would have been scam, if I was introduced to any MLM program but you have swayed my thoughts with the basic truth.

    1. Hello Derek
      Yes indeed MLM has a bad name and principally because of all the Pyramid Schemes that are out there.
      Some times it hard to tell the difference from lack of experience.
      Therefore the best thing to do is find someone who has that experience and learn from them.
      I hope you have great success with your online efforts.
      Best regards.
      Robert Allan

  9. Hello  Robert, 

    I absolutely love what I read in this insightful article because it is full of great information. This is fascinating and interesting to me. I Am onto MLM business and I really enjoy doing it as a matter of fact, I solve people’s problem. MLM is real but finding the right one is the major thing to know. 

    Reading your article and following those steps can help locate MLM which is best in joining.
    Best regards

    1. Hi, thank you for reading my MLM article.
      Good to know you have tried and had some success with your own MLM efforts.
      You, of course are right in that finding a good one is quite hard and especially if you lack or have no previous experience about marketing online.
      Onwards and upwards to more success.

      Best wishes for that success.
      Robert Allan

  10. Hi Robert, different folks have different opinions when it comes to multi level marketing. What works for Mr. A might not work for Mr. B. That said, MLM is not a scam at all, rather it is a powerful means of making livelihood, especially for people that knows the intricacies of MLM.

    You have aptly differentiated between MLM and Pyramid scheme, especially in terms of products selling and services, pyramid has no product to offer people but rather encourage large investment which they can easily disappear with.

    Thanks for listing mistakes one has to look out for while doing MLM business.

    1. Hello Grace and thank you for your visit to my site and of course for your comment.
      I’m sure you went away with a tip or two that will steer you away from the scams and scammers out there on the net who lure you in with promises of getting rich.
      But that is exactly what they are – ‘Get Rich Schemes’.
      Do your research, and do it thoroughly is the best advice I can give you.
      Of course ML wont work for everyone but if you can find a good one then you will make decent money from it.
      I wish you evcry success with your own online efforts to earn a living from the internet and if you get stuck then by all means read more of my articles on how to make money online and from home.

      Enjoy your day.
      Robert Allan

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