| The mere mention of the term multilevel marketing | | | | initial fee they pay to join in the fun. While some shun |
| often causes a shudder among the uninformed who | | | | the idea of having to pay to have a sales job, it is |
| still believe that network marketing is a takeoff on | | | | consistent with traditional business models that charge |
| illegal pyramid schemes and over the years have been | | | | a franchise fee for the right to sell products under the |
| harassed by friends and family members telling them | | | | name of an established business. However, the lines |
| how they are not thinking clearly for rejecting the | | | | between a scam and a legitimate network marketing |
| invitation to get in on a ground floor opportunity. | | | | business can be blurred if they fee is divided among |
| However, network marketing, or multilevel marketing, is | | | | members of the upline and the only thing the person |
| a legitimate business practice, providing it meets certain | | | | receives for their payment is the right to recruit |
| criteria established by government regulators. | | | | additional people for their own downline. There should |
| Essentially, a marketing network consists of a group of | | | | be some tangible evidence that they received |
| people working together for a common cause, and in | | | | something of value for their payment such as training |
| most cases with multilevel marketing, it is to increase | | | | materials and the ability to call for help if they feel |
| sales for a particular business or product. The focus of | | | | overwhelmed. One of the most common complaints |
| the program should be on selling merchandise and | | | | from MLM participants is the lack of information. If the |
| while recruiting new distributors into the fold is | | | | sales training covers compensation plans and how to |
| important, it should never be the primary focus. While | | | | recruit new distributors instead of how to sell the |
| most programs involve payment of an entry fee, so to | | | | product and the how the product can benefit the |
| speak, there should be no continuing requirement to | | | | customer, then the plan may be flawed in its approach |
| buy product in order to earn commissions on sales. | | | | to multilevel marketing. Selling the right to recruit new |
| Additionally, members of the network who buy | | | | members is not the legal focus of a multilevel |
| products for personal use usually do so at a wholesale | | | | marketing plan and legitimate businesses would rather |
| price and earn no commissions on those sales. | | | | sell more product than have more people in their |
| Companies that withhold commission payments unless | | | | downlines. Patience and dedication are required to be |
| a member of the group has a certain number of | | | | involved in any network marketing plan, but it also |
| people in their downline may also be walking a thin line | | | | require confidence that what you are doing is offering |
| between a legitimate business and a pyramid scheme. | | | | a benefit to others as well as creating an income for |
| With a legitimate business there are certainly attempts | | | | yourself and those in your downline. |
| to bring in new distributors into a person's downline, but | | | | Dustin Cannon, of Next Level Enterprises, LLC is a |
| it should not be the primary goal. The benefit to those | | | | successful Internet marketer working with top leaders |
| doing the recruiting will be the payment of commissions | | | | in the home business and Internet marketing industry. |
| on the sales those distributors make and not on the | | | | |