What is Network Marketing?

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Let me first explain what Multi Level Marketing it not. It is not a Pyramid scheme. It is not some get rich quick scheme ( although many people would like to tell you that it is ). It is not some fly by the night scheme where companies jump into MLM and make a bunch of cash and jump out. It is not illegal. It is not unethical.

MLM is a glorified term for direct selling. In order for a company to be an MLM it has to have a solid, verified product or products that it can sell. Normally these products are consumable so they need to be purchased month after month. The better companies have better products and are typically leading edge innovators.

Why MLM is attractive to many people is because of the infinite money you “can” make. In a traditional Business you have a manufacturer who sells the product to a wholesaler. The wholesaler then sells the product to a retailer. The retailer then sells the product to a consumer. The manufacturer takes their cut, the wholesaler takes their cut and the retailer takes their cut. For the manufacturer, the wholesaler and the retailer they all have huge overheads, they need to maintain factories / retail stores, they need to employ staff etc .. This means they need to place large markups on the products in order for them to not only meet their costs but to also make a profit, so a product that may have cost a few cents to make will end up being sold for many dollars.