How Does Multi Level Network Marketing Work?

LEARN HOW TO SEE THE DIFFERENCE BETWEEN THE LEGAL ENTITIES AND THE SCAMS!Can you clearly see the difference between legal Multi Level Network Marketing and the less profitable opportunities online, like pyramid games and scams? You may say that legal Multi Level Network Marketing is a combination of networking and franchising. Also one important factor is that your success in building your business is your own dedication, diligence and skill. The franchising portion involve you marketing and selling products and/or a service of an already existing company. This company have chosen to use the Multi Level Network Marketing strategy as a way to sell and market their products and/or services. Examples of such well-known companies are Tupperware and Oriflame that both use the Multi Level Network Marketing method. These types of companies provide their distributors with suitable education, material and guidance necessary to market and sell with a fruitful result.THIS IS THE WAY IT WORKSThe Multi Level Network Marketing companies recruit members at an initial stage. These members make money by selling products or services from the franchise company to its own network. When the business grows its time to step up to be a distributor. To become a distributor they continue to sell as previously but also build their own down line organisation with sales people reporting to them. As this Multi Level Network Marketing keep growing the distributor also gain residuals from the sales performed by its sales people including its own sales. In some systems the distributor also gain bonuses from generating new members that sell the same products or services in his network.HOW DO I SPOT THE DIFFERENCE BETWEEN THIS AND PYRAMID SCAMS?But is Multi Level Network Marketing the same thing as pyramid selling? In principle, a pyramid selling system has got only one objective, and that is to rob you. After that, the pyramid systems use YOU to rob other people too! The marketing strategy and business model that enforce MLM is one focused on selling honourable products and its important for the company behind to keep a good reputation by increasing the distribution base.5 TIPS TO SEE THROUGH A PYRAMID SCAM1. Do you have to invest a large amount of money to join as a member and to earn the right to distribute the products? Legitimate Multi Level Network Marketing companies do not demand large investments initially. 2. Do you have to purchase a certain amount of none refundable stock initially? Legitimate Multi Level Network Marketing companies uses low initial purchases and see things out of your perspective. You need to see and test their products before you make any big investments3. What about the business support. Does it exist or are you being left alone after investing a huge amount? Legitimate Multi Level Network Marketing has already tested proven sales and marketing packages and strategies to help their consultants in the sales process when approaching the end customer.4. Do they offer huge residuals already initially for recruiting new members? Do they focus more on recruiting new members than selling their products? Needless to say, a legitimate Multi Level Network Marketing company focus on selling their products or services.5. What about stable trainings, are they in place? Is there a solid training scheme in place with your own head office contact for ongoing training updates?If any of these points indicate a pyramid scam I definitely insist that you think again. There is a lot of well established and well paying Multi Level Network Marketing companies out there to help you become an successful home based business entrepreneur.