MLM Marketing is a marketing structure that is used by some companies. The structure is designed to create a marketing and sales force by paying promoters for both the sales of the companies products they make and for new distributors they bring into the business that will go on to promote the companies product as well.

Anyone who joins the MLM business and promotes the product is known as a distributor, they do not earn a salary but instead they are awarded a commission dependant on how many sales they make themselves and the sales of their down line. The process is similar to a franchise.

A downline is the people that have bought into the company via you. You will get paid for them joining and earn a percentage of any future sales they make.

So here some advantages of MLM businesses; Relatively quick and easy to set up, Can start straight away if you like, if you join near the top of the MLM line you can stand to build a long downline and make a lot of money.

Here are the Disadvantages of MLM; Methods of selling are outdated, this is because most MLM models encourage you to sell to your firends and family, pick up the phone and tell people about your product. These aren’t exactly cutting edge and many people will not be interested in sales calls! Another disadvantage is if you join near the bottom of the line most of the market will be saturated and you’re competing with experienced marketers. Now you will not be able to compete with these as nearly all MLM’s do not provide training on Internet Marketing.

So overall I think MLM’s are outdated as the marketing techniques they teach are no longer effective. Nearly every MLM will not provide you with the real training you need on Internet Marketing if you are to make money online and set up a successful home business.

They leave most people making no money from the business and have therefore wasted their signing on fee.

One of the main reasons people join an MLM is because of the lifestyle that is portrayed however at the beginning you will spend most of your time calling people on the phone and more often than not getting negative responses. This doesn’t sound like fun to me, instead a lot like a job!

However if you still think MLM is the way to go make sure you join near the top of a line otherwise the market will be saturated and you will most likely not make many sales.

it article came from the laptop of Jonathan Pitts. Jonathan is a very experienced Internet Marketer who has had a lot of success in it Industry! He now mentors others so they can become successful marketers too! Fed up of the Hype in it Industry he has created a Truth Report giving the TRUTH on how to Make Money Online! He could be charging $100’s for it but has decided giving it away for free!

Tags: Home Business