The Basics of Network Marketing and MLM

what is network marketing and mlm all about?Starting a home based business is within reach of almost everyone. Network marketing and MLM opportunities give you the chance to create a significant home based income with only a small initial investment.

Getting started on the right foot with a home business  is easier if you take some time in the beginning to learn more about what it takes to make money and be successful.

The investment to start a network marketing business from home is much less than the cost of a traditional franchise or “brick and mortar” enterprise.

Have you been looking for a home business and decided to take a closer look at network marketing? You’ve made a good decision, because this business can provide a great income and many other benefits as well.

Following are some common questions that people ask about network marketing and MLM.

Where do I begin when choosing a network marketing opportunity?

Look for a company that has been around at least 2-3 years, preferably longer. New network marketing and MLM companies can open their doors and shut down unexpectedly, just like any other business. Companies with a record of long-term stability and good service are your best bet.

I’ve heard that network marketing is a “pyramid scheme”. What is that all about?

“Pyramid” schemes offer fast money earned by selling the right to recruit others. They sometime have a product to help them look legitimate, but it will have little real value. The real money is made by recruiting other people into the scheme, not through sale and consumption of the product. Many of these scams don’t even offer a product – they just move money around. A true network marketing or MLM opportunity will offer real products, and place some importance on sales to customers who are not involved in the business opportunity.

What about getting in on the “ground floor” with a new opportunity?

This is a big risk. If you go in knowing the odds and have money to put into it, it is possible that working with a startup business can be rewarding. Every solid and reputable network marketing company was a startup at one time. Just be aware of the risk. Companies with an established track record provide a more solid opportunity to achieve long-term income and stability.

How do I get paid in network marketing?

There are several types of network marketing and MLM compensation plans. A few of the more common plans are known as “breakaway”, “matrix”, “unilevel”, and “binary”. There are others that are a blend or spin off of these. You can build a solid business and make money with any of these plans. When considering an opportunity, look at the stability and track record of the company. Then, consider the products – quality, value, and whether anyone would want to buy them. The compensation plan is important, too, but should not be the primary focus.

Will I need to buy an inventory of products?

Purchasing an inventory of products should not be a requirement to sign up. It should be an option. In some cases, having a product inventory makes sense. However, your retail customers should have the option to order the products directly from the company using your ID. If your business is built around retailing, this is more like direct sales and inventory is important. In network marketing and MLM, this is not usually something you need to do.

I’ve found a good opportunity and signed up – what do I do now?

Get in touch and talk to your sponsor and upline leaders. They should help you develop a plan for starting your business successfully. The company, and the upline group you join, should have a system in place for training and helping you get off to a good start. Before signing up, it’s a good idea to discuss the training with your future upline leaders and make sure you’re comfortable with the philosophy and approach.

Can I build a network marketing business online?

Many people have built successful businesses online. You will need money for advertising, and time to do what it takes to make connections with prospects. Keep in mind that online MLM is still a people business – you can’t hide behind a computer and expect to make it work. You can reach many more prospects and grow your business faster, but you still need the personal contact.

I’ve heard “MLM”, “multilevel marketing”, and “network marketing” all used to describe this type of business. Is there any difference in these?

While some teach that there is a difference between “network marketing” and “MLM”, in popular usage these terms mean basically the same thing. “Network marketing” is a more contemporary term for “MLM” and “multilevel marketing”.

One Final Thought

There are a lot of people looking for ways to make money from home. It is possible to make a significant income in this business today. Because of the huge moneymaking potential, scammers are always coming up with deals that are designed to look like legitimate MLM and network marketing opportunities on the surface. Just be careful and do your homework.

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Eldon Beard, Home Business Success Coach

If you have a home business and are happy, that's good. If you are looking for the right opportunity, the right mentor, and something you can build online, I would enjoy the opportunity to share what I'm doing. Click here and let’s explore the possibilities.

About Eldon Beard

Making money with a home business should be fun! I help others create a profitable global business from anywhere using an Internet connection and a phone. Send me a message and let's talk! Connect with me on Google+.

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