BeginMyNuLife.com invites you to find out more about MLM and network marketing

Multi level marketing known as “MLM” is a strategy of networking and leveraging the marketing of distributors. Distributors earn compensation through direct selling to consumers and other distributors. The idea is to have distributors recruit other distributors who recruit other distributors and so on. In this MLM situation, recruiters get paid a percentage on multiple levels of distributors. The Direct Selling Association regulates its membership and helps differentiate a legitimate MLM and a pyramid scheme.

MLM is done by word of mouth, through relationships of friends, family, and associates, and through lead generation. Each multi level marketer is considered an independent business owner or franchise owners. They are then given a commission from the parent company to their independent business.

The overall success rate of MLM distributors is 95%. It is very similar to the success rate of any business. Many of the distributors that fail usually give up within the first few months. Those that stick with it and don’t succeed are often stuck in a MLM that has a poor compensation plan. Plans like a binary compensation plan limit the business owner to make profits only at the lesser level of 2 coinciding legs are producing. In MLM usually only 1 leg ever takes off when it does. By being limited to the lesser leg, the parent company pockets the additional profits of the more successful leg.

There are thousands of MLM companies out there but only a few will ever make it big. Some of the biggest names in multi level marketing are Amway, Forever Living, Herbalife, and Nu Skin. Amway is the biggest company in existence with 7 billion in annual income, but Nu Skin is the company that has produced more millionaires through distributors than any of the other companies.