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There is a common misunderstanding about multi-level marketing (AKA network marketing) companies.
Most people think that they are scams and they should be avoided at all cost.
While some might be scams, there are many MLM companies that are honest and trustworthy companies. In all instances you should do your research before starting a business on your own.
A MLM business involves the direct sale of a product from a personal recommendation. In return you would get a commission for making that recommendation that led to the sale of the product or service.
There are various business systems that provide commissions from direct sales, but there are 2 components that make network marketing unique.
First, you can earn passive income from the efforts of your team
Here's a popular quote from John D. Rockefeller:
"I would rather earn 1% off a 100 people's efforts than 100% of my own efforts."
If you're just working by yourself, then it's harder to earn a full-time income compared to building a global business with a team.
Second, the leadership in your network marketing company have an incentive to train you and provide you with the steps for you to become successful.
If you're successful, then become more successful. It's a win-win business situation.
If you live in the United States, the answer to this question is no, but it is commonly thought of as a scheme. For people outside of the U.S., please refer to your local regulations.
When it comes to business scams, MLM often becomes part of the discussion. Some people equate the tiered system to a pyramid shape, and therefore an illegal scheme. That's a simplified way to think about it, but that's a narrow-minded interpretation.
In an MLM, the sales reps are promoting a product and giving their personal recommendations in exchange for a commission on the sale. MLM companies have multiple levels where commissions are split.
If you look at a real estate or an insurance brokerage, something similar exists. Brokers have the opportunity to recruit and grow leaders within their agency. The more representatives they enroll, the more potential they have to make more sales.
Yes you can. Many reps are trained the traditional way.
They've been told that they have to only focus on their warm market. They'll tell you that if you focus on your friends and family, that you can recruit tons of people and make a living just on doing that.
That does work for some people, but it didn't work for me.
I had to go beyond my warm market. While I've done cold calling and knocked on doors, I don't push that and that's not what this website is all about.
So yes, you can enroll reps without chasing after your friends and family. You can enroll reps without using cold, rejection-prone techniques.
My friends and I have enrolled multiple thousands of reps by using these geometric-growth strategies, across a wide-variety of network marketing companies.
I'm offering free training: