MLM, or multilevel marketing, and network marketing are essentially the same thing.  In the MLM business model, income and compensation are multi-tiered, based on earning not only from the products that you sell, but also by recruiting additional sellers and earning income from their sales as well.  Network marketing businesses do not necessarily have to be multi-tiered and that is the primary difference.  Many MLM or networking marketing business opportunities work well as home based businesses.  Individuals operate their MLM business from their home.

Often MLM is compared to a pyramid scheme.  A pyramid scheme is illegal and although the MLM compensation plan often resembles the shape of a pyramid as it is multi-tiered, MLM is completely legal.  You can earn money by selling products directly to your customers and you also earn income by recruiting other individuals into the business beneath you.  The individuals that you recruit and the ones they recruit are often called the “downline.” You can earn additional income from the products that your downline sells to their customers as well as from individuals that they recruit.  For this reason, MLM has the potential for exponential growth.  The most successful multilevel marketers are making money from the work that others do.  Income increases as the downline that is recruited and working successfully continues to build. The key to successful MLM is to establish a strong downline.  You will need to continue to recruit and train new people under you and help them become successful.  With the growth of your downline, you will see your income grow.

Network marketing doesn’t necessarily need to be multileveled, however, the network marketing concept is used in MLM.  Networking simply means building relationships.  By using your established relationships and developing new ones, the number of people that you can share your MLM business opportunity with is massive.  Imagine the number of people that you know and the ones that you don’t know that are just a click away on the internet.  It used to be that your network of possible recruits was limited to friends and family, however, with the internet and social media, your network is practically infinite.  Finding individuals that are looking for MLM business opportunities is just a click away on Facebook or Twitter and selling your product via markets such as Ebay or Craigslist can grow your business to a global level. 

Many successful MLM business owners began small and started part time from home while still working in their existing job.  Operating a home based business opens the doors for greater flexibility not only in your career but in your personal life as well.  Many people start an MLM business with the goal of just earning a little extra cash while others strive to earn enough to quit their 9-5 job.  There are many successful MLM business owners that make excellent incomes.  With the right product and a passion for that product along with recruiting and training others to become successful, a simple home based MLM company can grow into an excellent income opportunity.

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    This entry was posted on Tuesday, July 5th, 2011 at 10:00 am and is filed under Home-based Business, MLM, Network Marketing. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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