A Second Look at the MLM Business

Multilevel marketing or MLM Business, before it was made synonymous with pyramiding schemes, is a legitimate and can be a viable business plan. It is a strategy where one person who is selling a product builds a network of like-minded entrepreneurs (the “downline”) and gets commission from their sales as well as from his own personal sales.

MLM business was never a bad idea, per se, because it was flexible, accessible to almost anybody who can invest (and often times not that much investment is needed, nor a lot of academic background), and it cut down the prices for the consumers by a good margin.

Two-Way Street
The fastest way to get from point A to point B is a straight line; this is the idea upon which the MLM business is built upon, so when you buy directly from an MLM business entrepreneur and you get the product cheap, don’t immediately assume that you are losing out on quality. You’ve just been able to cut the expense of going through the middleman, lessening the overhead costs of keeping a shop front and advertising. This means two things that the MLM business is able to achieve – bring the price down for the consumer and make it accessible for the small manufacturers to bring their goods to the market at minimum cost.

Remember the Tupperware parties that moms used to have? Or the visit from the AVON lady? Those were some of the pioneers of the MLM business trend, and they certainly didn’t gyp anyone, did they?

Picking the Right One
Choosing which MLM business to invest in can be a tricky thing. On one hand, it is very tempting to want to make big money with a least amount of effort, and the pyramiding schemes that pretend to be legit MLMs are taking advantage of this. Make no mistake, a legitimate MLM business will take up a lot of your time and effort, and you will need a lot of help, often times from the “warm” market of your friends and family.

If the profit of the MLM business that you are looking at depend mostly on how much “downline” you can build and not concentrate on the sales that you yourself make, chances are it is a pyramiding scheme, and you are best served to stay away from it.