If you are like most people, at one time or another you have been approached to learn more about a MLM opportunity. Like it or not, Multi Level Marketing is one of the most successful marketing models of all time.
Basically it takes satisfied customers and turns them into sales agents for the parent company. The thinking is, if you like and use the product then you will be able to sell it to another person you know. Participants are compensated by being paid a commission from every sale made in their down line. This is where the big bucks are made. If you have dozens or hundreds of people in your down line those commissions can add up quickly.
MLM has it roots back in the late 1800's, but did not gain wide spread popularity until the late 1970's. Amway was one of the first MLM companies that had wide spread recognition. It was almost shut down for being a pyramid scheme, but once they cleared their name the MLM industry took off.
Many people look down on MLM as a scam, but it is in fact a proven business model. One problem that has tarnished it is the fact that so many people are recruited into these organizations with little sales skills and they are told to look to family and friends to sell their products. If you have ever tried to sell anything to a family member you understand the difficulty and scepticism involved. This has developed into many people thinking MLM is a get rich quick scheme and full of illegal activity.
MLM is in fact a valid and smart business model for many businesses. More profit is gained as there is less in the way of marketing costs. The people who market for the company are the satisfied customers. Unfortunately, most MLM companies do not train the people they recruit to do the selling for them beyond some cursory sales information. This leads to the majority of people who join MLM groups to fail. Whether you like it or not MLM is very popular and here to stay.