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For our purposes, we will consider Multi Level Marketing and Consumer Direct Marketing to be in the same category. Basically, in MLM, there is a parent compnay, and then an individual joins as some sort of unpaid independent contractor. Independent contractors may be called, distributors, independent distributors, marketing representatives, etc. There is usually a membership fee as well as a product cost to join. Different MLM’s have different levels at which you can join as well as different requirements to be considered active and receive bonuses and commissions. Many also require a monthly purchase commitment.

The name Multi Level Marketing comes from the aspect of the business that allows a member to receive income from not only the people that they introduce to the business, but also the people that those people introduce to the business (and so on - for one or two levels or to infinity depending on the specific compensation plan of the MLM.)

The Pro’s of MLM

MLM’s are a great way to capitalize on other people’s money as the parent company provides you with the product, the research, the product development, marketing materials, legal info, etc. You get the benefit of the corporate budget, but you simply “buy in” as an associate or independent executive.

MLM’s are also a great way to capitalize on other people’s efforts. You will see your business grow not only based on your own individual efforts, but also the efforts of others who are in your marketing organization.

MLM’s are a great way to earn a substantial income in a short amount of time due to using other people’s money and other people’s efforts.

MLM’s are gaining popularity with business savvy individuals as a way to provide additional leverage and income.

Con’s of MLM

Many are turned off by the thought of “recruiting” their friends and family. The internet reduces the need to contact friends and family for your marketing of MLM unless you really want to.

There may be a monthly purchase or production requirement.

For many, MLM still has a negative association with it (although most people can’t really say why)

Many companies have non-competition clauses in their contracts which would prohibit one from exploring other income opportunities.

In truth, there are many people in all walks of life, in all ages, and with all levels of education that are exceeding wildly at MLM. MLM will take hard work, persistence and dedication, but it is a very viable method to work from home and earn an income.