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WHAT IS M L M First Off ! What's legal and legitimate? To help you understand what network marketing is, Multi LEVEL Marketing Is Not A Pyramid Scheme. Pyramids are programs similar to chain letters where people just invest money based on the promise that other people will put in money that will filtrate back to them and somehow, they'll get rich. A pyramid is where money is paid out and no product or service is received. A pyramid is strictly a money game and has no basis in real commerce. Normally there's no product involved at all, just money changing hands. Modern-day pyramids may have a product, but it's clearly there just to disguise the money game. Pyramids are illegal and are based on taking advantage of people. In a pyramid scheme For a person to actually make money, someone else has to lose money. But in network marketing, each person can multiply his or her efforts, skills and talents by helping others be successful. Network marketing Has proved itself as part of the new economy and a preferred way to do business here and around the world. Network marketing Is a legitimate business. It's based on Providing people with real, legitimate products they need and want at a fair price. While some people Do make a lot of money through network marketing. their financial benefit is always The result of their own dedicated efforts in building an organization that sells real products and services. Network marketing Is Not a get-rich-quick scheme. Of course some people do make large amounts of money very quickly. Many would say Those people are lucky. But success in Networking Marketing is not based on luck. Unfortunately, money won't sprout wings and fly into your bank account no matter what someone has promised you. Success In Network Marketing is based on following some very basic yet dynamic principles. Network marketing Is a serious business for serious people. It's a proven system Where the design, creation and expense the corporate team has gone through becomes a road map for your own success. Just follow The simple, proven and duplicable system that has been provided. The real key is this: Network marketing is all about leverage. You can Leverage your time and increase the number of hours of work effort on which you can be paid by sponsoring other people and earning a small income on their efforts. Would you Rather make 1 percent on the efforts of 100 people or 100 percent on your own effort. This very basic concept is the cornerstone of network marketing. For example, Most successful people building a network marketing business do so in an organized method. They work A few dedicated hours each week, with each hour of effort serving as a building block for their long-term business growth. Then they Sponsor other people and teach those people how to sell the company product and sponsor others who duplicate the process. By helping The people you personally sponsor to sponsor others, you duplicate yourself. As this process continues, You create compound growth that can lead to hundreds or even thousands of people coming into your business. You leverage Your time by helping others be successful and earn an income from all their efforts. With network marketing, There are no big capital requirements, no geographical limitations and no special education or skills needed. Network marketing Is a low-overhead, home based business that can actually offer many of the tax advantages associated with owning your own business. Network marketing Is a people-to-people business that can significantly expand your circle of friends. It's a business that Enables you to travel and have fun as well as enjoy the lifestyle that the extra income can provide. MLM or Multi-Level Marketing is simply a term used to describe what is probably the most efficient and exciting method of moving a product from ( THE MANUFACTURER ) to an end user ( THE CUSTOMER.) MLM is a system of multi-tiered bonuses and commissions designed to reward those involved in the process of distribution of products. To truly understand how MLM works. We need to understand that all products from milk, bread and cheese to complex heavy industrial machinery are distributed to Customers through a multi-tiered system of commission payments. Payment Is Made… As each tier handles certain aspects of the distribution process, so they are paid their commission or bonus accordingly. This multi-tiered system of product distribution could include the following... Bonuses and Commissions Retail And Retail Margin Advertising Cost’s And Freight Local Wholesaler Regional Wholesaler National Wholesaler Manufacturer Agent Manufacturer And of course the Customer is the one who pays the retail price and pays for the above system. The exciting aspect of MLM, is that many of these layers Of payments are unnecessary and can Be re-directed to the many thousands of Distributors that make up the sales and marketing function of the Company. Each Distributor is rewarded for two functions in the sales and marketing process: Retail Sales The sale of product to a Customer Sponsoring The recruitment of new Distributors to expand the Distributor Network for the Home Based Business. The more productive The Distributor is in performing these two functions, The more senior They Become in the organization, moving to higher, more lucrative levels of compensation, rewards and recognition in the Marketing & Income Plan. 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