Only by understanding what network marketing is and how it works
can you decide if it's for you. How do MLM companies differ
from traditional direct-selling ventures? The distinction lies in
the number of "levels" you can build to earn income.
Suppose you sell cookware door-to-door via traditional direct
selling. In this instance, you're limited to one income level.
You present the product; the customer buys (or not). Your income
directly correlates to your activity. If you stop selling, you stop
earning.
In contrast, as its name suggests, multilevel marketing creates
multiple income levels. While selling their products, successful
network marketers also prospect for new recruits--people who are
sold on the products, believe in the company and have the vision to
market the product line and business opportunity themselves.
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Here's how it works. You recruit a handful of people--say,
five--who are interested in the business opportunity. Those five
distributors comprise your first "level." Their customers
make up your second level. If anyone on the second level buys into
the opportunity and begins selling, then those sales constitute
your third level, and so on down the line (hence the term
"downline").
As the number of levels in your downline increases, your income
grows exponentially. Ultimately, it's possible to build such a
large downline that you keep earning even when you're no longer
selling.
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