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Multilevel Marketing - Benefits & Drawbacks
By Chet Holcomb, Fri Dec 9th

If you've ever dreamed of running your own business from home,whether on a full or part-time basis...and are good with peoplebut have very little business knowledge, then MultilevelMarketing (MLM) may be for you. This is especially true if youhave a minimal amount of start-up cash.

MLM companies provide a product or service to the consumer via anetwork of "independent" distributors, who usually work fromtheir home.

Reputable MLM companies also provide a low start-up cost, allthe training you need, advertising in one form or another, andsupply you with a product line-up or service to sell. They alsoallow you to recruit other distributors and make commissions ontheir total sales.

The United States Federal Trade Commission, however, cautionsanyone from joining a MLM company that pays you for eachdistributor you recruit, as opposed to only paying a commissionon the total sales they generate. This is called 'Pyramiding'and is illegal.

The U.S. FTC also encourages you to thoroughly research a MLMcompany before signing on the dotted line, and not to signanything under pressure, but instead, take time to consider allthe details. You can check out their Multilevel MarketingCaution Web Page at:http://www.ftc.gov/bcp/conline/pubs/alerts/pyrdalrt.htm. On thispage, they also list seven checks you should do before makingyour decision whether to join or not.

Research is always an important component of any businessventure and considering a distributorship with a MLM company isno exception.

Searching the Internet under "Multilevel Marketing" returns arecipe of results. These range from government agencies, generalinformation web sites, encyclopedia type sites to a host ofdisgruntled, former MLM distributors. People who are "pro" MLMdon't write web sites on the topic because they're usually toobusy building their network.

THE GOOD SIDE

Here are some of the benefits of finding a reputable MLMcompany:

- They have an established and very marketable product line orservice, and strive to improve or add to the existing line-up. -Recruiting new distributors will be a streamlined process, andthe company will not be involved in Pyramiding. - As a company,they will have a solid track record and good work ethics. - Noexperience will be required. A good MLM company will provideone-on-one training, as well as motivational seminars and a fullcompliment of training materials. After all, in Multilevelmarketing, when one succeeds all succeed. - A reputable MLMcompany will be "Family" rated, meaning that crude conduct isnot tolerated. - They will provide an excellent bonus plan withmany incentives for those who excel. - Well-established MLMcompanies should be able to provide you with resource materialto aid you in not only product sales but in recruiting. - Theywill have minimal start-up fees. - A strong support system. -You will be led by example. - Healthy team competition. - Therewill be a successful business and marketing plan in place thatcan be successfully duplicated by others, assuming they applythemselves to the plan and are motivated to succeed. - Thereexists the possibility of full-time or part-time commitment.

These attributes would definitely belong to an ideal MultilevelMarketing Company, however not all reputable companies excel inall these areas. Some

companies will be better in certain areasthan others. Do research on the company. Don't just accept themotivational hype used by most MLM companies in order torecruit.

Some MLM distributors are so highly trained that they have a"come-back" for almost every statement you make or concern youhave. This would be considered a 'high-pressure' invitation tojoin. Always take time away to cool off - especially if you'reexcited by what you heard. Sit on your decision for a while anddo research. If the company is good, they will still be therewhen you wake up tomorrow; and yes, you will get a follow-upphone call.

THE DOWNSIDE

While the MLM model can be a great tool to achieve what you wantin life, it would be remiss not to mention the downside.

- It is easy to get 'taken' by a disreputable MLM company. Doyour research. - If you plan on developing a network - a"downline" - it will cost you more money than you realize andtake you longer than you think - although this is slightcompared to the cost and time required to start up a traditionalbusiness. You will spend a lot on resource and trainingmaterials that you will end up giving away to prospects and toyour downline distributors. - You might spend a lot of money onfuel for your vehicle, meals out, hotel rooms or neck surgeryfrom sleeping in your car. - Some companies insist on a minimummonthly order to maintain your distributorship. - Some companiesonly pay you for recruiting other distributors and not on theirtotal sales volume. Beware, as this is called 'Pyramiding' andis illegal in most countries. - While you may initially be ledto believe that the products sell themselves and that you canmake a lot of money with little effort, beware. Most businesses,whether they are traditional, online, or MLM, take a lot ofenergy and effort to make them successful. Consider a rocket: 60- 80% of the fuel is used just to raise it a few inches off theground. - Be ready for a lot of rejection. Approximately 80%+ ofthe people you contact will turn you down. - It is easy to getcaught up in the 'dream' and overspend because, "Winners alwaysfind a way." It is also easy to be pressured into 'willingly'spending beyond your means. - It could very easily become yourlife's vocation, with everything centered on it. Somedistributors even refuse to attend family weddings etc., becauseit falls on the same date as their MLM seminar. - Also, likemost businesses, when you begin you will be spending much morethan you make.

The final judgment: Most business entrepreneurs face thequestion, "How much am I able and willing to lose if it doesn'twork?" That is the question you have to ask yourself before youget into Multilevel Marketing.

And of course, what do you want from life and what are youwilling to do to get it?

If you enjoy helping others succeed so that you can succeed, arewilling to take the risks associated with being in business foryourself, even on a part-time basis, and are willing to put inlong days, then Multilevel Marketing may just be the tool youare looking for to achieve your business and life goals.

Here's to success!

About the author:

About the Author Chet Holcomb ofhttp://www.internetpromotions.biz is a successful marketingexpert providing advice for web marketers and webmasters on howto promote your website, or product using marketing tools thatwork. You may reprint this article if all the information/linksare kept intact and unchanged.

We strive to provide only quality articles, so if there is a specific topic related to ethics that you would like us to cover, please contact us at any time.

And again, thank you to those contributing daily to our the ethics of human organ transplants website.

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