What is MLM and Can It Be a Valid Home Based Business?

MLM, or multi-level marketing, has come under some criticisms of
late, mostly due to a misunderstanding of what MLM is and isn’t.
Many people believe that an MLM is no different than a pyramid
scheme, but in fact, it is a legitimate business model. In fact,
it can be a very lucrative business for any home based business
entrepreneur.

MLM is a business model involving the direct selling of products
or services through the personal recommendation or endorsement
of independent representatives. If you are the representative,
you receive a commission on the sale for giving the
recommendation or endorsement. Most products that use MLM are
not advertised in the mainstream media or in stores.

MLM goes on to create an upline and a downline through
recruiting. As an independent representative, you recruit other
independent representatives to directly sell those products and
services (your downline). You receive a commission on their
sales. Your upline includes your recruiter, the person who
recruited him/her, and so on. They earn a commission on your
sales. In fact, it is not so different from multi-tier affiliate
programs.

However, this structure is how most people confuse MLM with a
pyramid scheme. With MLM, the products or services sold have a
proportionate value to the amount invested. In a pyramid scheme
that value is highly disproportionate or the scheme just
involves the basic transfer of funds up the pyramid. For
instance, the most classic pyramid scheme is the one where you
get a letter telling you to mail money to the person at the top
of the list, cross it off, and put your name at the bottom. Then
you mail out letters to so many people and eventually reap the
rewards when your name gets to the top of the list, which it
never does.

It is important to note pyramid schemes that are disguised as
MLM programs, as there are some people out there trying to take
advantage of those wanting to get involved in MLM programs. If
you are looking to get involved in an MLM program, then make
sure that your investment is proportionate to the product or
service you will be selling. Remember, pyramid schemes are
illegal, and you participate at your own risk.

Read the rest of the article here: What is MLM
and Can It Be a Valid Home Based Business?.

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Copyright © Charles Fuchs is an established Six Figure Income
earner and one of the top online marketer’s. He specializes in
showing people the Best Home Based Business and the Best MLM on
the internet.

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print, as long as the bylines are included, with a live link,
and the article is not changed in any way

Charles Fuchs
http://www.articlesbase.com/home-business-articles/what-is-mlm-and-can-it-be-a-valid-home-based-business-3242.html

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