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What is Mutli-Level Marketing (MLM) or Network Marketing Industry

MLM or Network Marketing Industry Explained Including Myths, Pitfalls and Tips to Success


image result for network marketing industry,work from home jobs,mlm business,mlm companies,network marketing,work from home,multi level marketing companies,multi level marketing,mlm,what is mlm,mlm meaningMulti level marketing,(MLM) or Network Marketing Industry is a form of direct sale home business in which independent representatives sell products or services from a company to an end consumer. The multi-level aspect refers to each representative's ability to recruit and train other representatives to start their own business, and earn a commission on their reps' sales.
Income earned in network marketing comes from the commission earned on personal sales, as well as a percentage of the sales earned by other reps recruited by you.

MLM or Network Marketing Terms to Know:

The Plan: Most MLM reps refer to their program as "the plan," which outlines the company's marketing and compensation (how you earn money) plans.
image result for network marketing industry,work from home jobs,mlm business,mlm companies,network marketing,work from home,multi level marketing companies,multi level marketing,mlm,what is mlm,mlm meaningSponsor: The sponsor is the representative who directly recruits another person into the business. For example, MLM member A recruits member B into the business. Member A is the sponsor and is responsible for training member B.
Recruit: A recruit may also be referred to a team member. It's a person brought into the business by a sponsor as a new member. Recruits are trained by their sponsor or "upline" (see below) representatives.
Downline: Your downline contains the recruits brought in below you. This can include members you've recruited as well as those your recruits have brought into the business.
Upline: The upline consists of the representative sponsors who came in before you. For example, if rep A recruited rep B, who recruited rep C, who recruited you, your upline is C, B, and A. 
Compensation Plan: Similar to the plan, this outlines all the ways reps earn money. To be legal and not a scam, the focus when it comes to earning money needs to be on the sales of products and services, not on recruitment of new members. Along with commissions on sales made by you and your team, many companies pay bonuses and increase commission splits based on volume of sales.
Network Marketing industry: Multi-level marketing industry is sometimes referred to as network marketing industry as well.

Is MLM Legal?

There are many myth and misconception for Network Marketing industry, including its legality. For an network marketing to be legal, it needs three things:
1. A quality product or service
image result for network marketing industry,work from home jobs,mlm business,mlm companies,network marketing,work from home,multi level marketing companies,multi level marketing,mlm,what is mlm,mlm meaning2. Income is earned off sales of products or services
3. The focus is on sales, not recruitment alone. 
A program with no or a low-quality product, or with a focus on getting paid per recruit, could be an illegal pyramid scheme. However, don't let the term pyramid throw you off. It's not the shape of the organization that makes it illegal. In fact, most companies have a pyramid structure with a CEO at the top, VPs next, mid-level managers etc. What makes an illegal pyramid scheme is the lack of a quality product, or that income is earned on recruiting, not commissions from sales. 

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