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MLM marketing (also known as network marketing) is a marketing structure used by some companies. The structure is designed to create a marketing and sales force by compensating promoters for both the sales of products they make and for new distributors they bring into the business that will promote the product as well.

Anyone who joins the MLM business and promotes the product is known as a distributor, they do not earn a salary but instead they are awarded a commission dependant on how many sales they make themselves and the sales of their down line. The process is similar to a franchise.

A downline is the people that have paid you to join the MLM business and you will get a percentage of their sales. So in essence you pay to join into the business and then you will earn for every person you bring into the business and any future sales they make.

So here some advantages of MLM businesses; Relatively quick and easy to set up, Can start straight away if you like, if you join near the top of the MLM line you can stand to build a long downline and make a lot of money.

Here are the Disadvantages of MLM; Methods of selling are outdated, this is because most MLM models encourage you to sell to your firends and family, pick up the phone and tell people about your product. These aren’t exactly cutting edge and many people will not be interested in sales calls! Another disadvantage is if you join near the bottom of the line most of the market will be saturated and you’re competing with experienced marketers. Now you will not be able to compete with these as nearly all MLM’s do not provide training on Internet Marketing and techniques.

So overall I think MLM’s are outdated as the marketing techniques they teach are no longer effective. Nearly every MLM will not provide you with the real training you need on Internet Marketing if you are to make money online and set up a successful home business.

Now there of course there are people making money from MLM’s and I’m not by any means trying to say they cannot make you money, but there is a very high failure rate as there’s a lack of training and support!

One of the main reasons people choose to make money online is to have free time but at the beginning you will spend most of your time on the phone selling your product and most people will not buy from you which leads to you getting disheartened and is the main reason people give up!

However if you still think MLM is the way to go make sure you join near the top of a line otherwise the market will be saturated and you will most likely not make many sales.

it article came from the laptop of Jonathan Pitts. Jonathan is a hugely experienced Internet Marketer who has had a lot of success in it Industry! He now mentors others so they can become successful entrepreneurs too! Fed up of the Smoke in it Industry he has produced a Truth Report giving the TRUTH on how to Make Money Online! He could be charging $100’s for it but has decided giving it away for free!