by Rahimah Sultan

Updated July 17, 2021

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MLM (multi-level marketing) IS a legitimate business model. MLM is a marketing strategy in which the sales force is compensated not only for sales they generate, but also for the sales of the other salespeople that they recruit. This recruited sales force is referred to as the participant’s “downline”, and can provide multiple levels of compensation.


MLMs have been around for over a century, are legitimate, and they work for some people.


In multi-level marketing, companies basically promise a chance to leave your 9-5 job, be your own boss, make lots of money and to make new friends in the process.


There is an ongoing debate as to whether these companies and programs are legitimate business opportunities or not.


The reason for most of the confusion is that multi-level marketing companies follow a concept similar to a pyramid scheme, except for two significant differences:

One being members at any level of a multi-level marketing model can theoretically make income through the company’s products and/or services without signing up any new members.

The second difference is that members of any level in a multi-level marketing plan can earn more than the people who signed them up.


Multi-level marketing companies are legal although structured almost exactly like a pyramid scheme.


A pyramid scheme is a non-sustainable business that involves the exchange of money, usually in the form of a sign-up fee, and usually has no product or service.

Following are some major indicators of a pyramid scheme.

* Programs that focus more on recruitment of new people rather than the sale of a product or service to an end-user consumer.

* Plans that claim you will make money through continued growth of your “downline” rather than through your own sales of products.

* Programs that ask distributors to purchase expensive inventory. There are horror stories of people with a basement or garage full of merchandise that no one will buy.

* Plans that ask you to sign a contract or pay money to participate in a multi-level marketing program, or any business opportunity, without taking your time and reading all of the paperwork.

Talk the opportunity over with a spouse, knowledgeable friend, accountant, or lawyer. If you feel that you are being subjected to high-pressure sales tactics or are not being given enough time to review the details, go elsewhere.

* Products or services are simply vehicles for recruitment. The products may be gimmicks and/or overpriced, but even high quality products may serve as a cover for recruitment activities.


According to the FTC, a pyramid scheme is defined as a company that specifically pays members for recruiting purposes only.


Check the FTC’s website.


To be super-successful in network marketing, you have to recruit new members.
It doesn’t matter how good your product or service is — the real money is in the flow of new recruits.


There’s the age-old debate that standard companies are set up like a pyramid, with a CEO at the top, some more officials under them, managers at the next lower level, and the team under the managers.


MLMs are completely different from standard companies.


Most companies don’t require their new employees to pay a sign-up fee to join, or have the majority of their product sales coming from their own employees, nor do most companies allow workers to personally recruit other employees into the business. HR does that.


Once you have found a legitimate multi-level marketing company that you want to be a part of, you must put in the work to make it profitable. If you want to succeed be disciplined and treat it like a business and be willing to follow advice from others who have made it.


Click here and check out the best MLM companies of 2021.



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by Rahimah Sultan

As you advance in your MLM business, there are three phases you’ll encounter, and each can be a trap.

The first is introverting which occurs at the beginning of your network marketing career. At this point you’re very afraid and studying scripts. You’re so focused on getting the words correct that you don’t communicate the concept to prospects. You must get passed focusing on what others think about you.

To get passed this, practice what you’re going to say over and over BEFORE getting in front of a live person, focus all your attention on the prospect, and have so much activity going on that you don’t have time to focus on your fears.

Second is doing it all. You sponsor so many people that you begin to feel no one else is doing any work or you wonder how to motivate your downline or you feel as though you’re sponsoring “duds.”

You have to have the patience to train the people you sponsor. You can’t do it for them. Don’t stop training your distributors until they can properly train their distributors.

Third is getting in the rut of making enough money to keep you going, although it’s not the money you dream of making.

Read The Three Booby Traps of Network Marketing

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In Merv Stevens’ article How To Start Website Business, he states that everyone has skills, whether it’s writing or approaching others and starting a conversation. He says that to put your best foot forward and increase your chances of success, you have to think about the things that you do best when you research affordable home based business opportunities.

Stevens, of WealthSuccessVentures.com,  discusses four points in that regard.

1) Understanding the value of persistence
2) Emulating those that are successful
3)Looking for products that are consumable
4)Considering businesses that offer passive income opportunities

On the first point, he states that in order to succeed you can’t give up. Too many people give up on perfectly good affordable home based business opportunities far too soon. There are thousands of success stories of men and women who absolutely refused to accept defeat.

On the second point of emulation, be sure you know who is providing the online courses that help you start up and run affordable home based business opportunities. Do your homework and make sure the people providing these courses have successful track records.

The third thing is to offer products that are used up and re-ordered, so that there will be a constant demand for what you offer. These can be food, soap, skin care products or other items that people use every day.

And finally, look for affordable home based business opportunities that provide passive income. These are best for making a lot of money. For instance, network marketing offers the opportunity to get paid on what you and your team do. If you get a good group under you, you’re paid whether you do anything or not.

Affiliate programs, where you advertise and make sales for a commission, is another way of getting passive income. Many of these programs are very affordable home based business opportunities, since they cost little or nothing to join.

It’s hard to choose. But, settle on something you’re comfortable with. Choose quality products and never give up. Affordable home based business opportunities with passive income features let you earn income while you sleep. This is how to start a website business.

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