Business Opportunities and Internet Marketing Systems that Don't Work

Highlights

Business "Systems"
Currency Exchange
Mlm Businesses
"Free" Business Packages
Distributorship Websites
Private Investing
Home Business Directories
Pixel Advertising
Offshore Investing

Multi-Level Marketing

I've heard people say, "I tried MLM and just couldn't make it work, and then I found Direct Sales companies and I am so glad because it is SO different!" Poppycock!

If there is a technical difference between MLM and Direct Sales, I have yet to see it in print anywhere. I've worked with both, and there is substantially no difference.

Each supplies you with marketing materials (costs vary), and each has terms of use on how you can present their products for sale. Each has a principle of building network teams through downline sponsorship. The manner in which they all operate varies from business to business.

There are legit companies, and then there are the shadier ones that present a system on a one page website - steer clear of those that attempt to pressure you into anything!

The first thing you need to look at with any kind of network marketing is the product. If a company is solid, the product will be sound. If the product is not sound, the entire company is unsound.

Downline and compensation structures vary widely also, and they use a language of their own. Some terms you may run into are:

Compensation on your own product sales - applies to products you sell yourself.

Compensation on downline sales, to X number of levels deep - applies to sales made by your downline.

Tiers - the layers in your downline or upline.

Matrix - the structure your downline forms - some companies use a "forced matrix" which means that you can only directly sponsor a certain number of people, and after that they have to go into someone else's downline that is also in your downline. Sometimes you can even move people from one spot in the matrix to another spot.

One Up, or Two Up Compensation - this means that your first one or two sales goes to your upline. This also means that your upline is not going to be as motivated to help you succeed.

AutoShip - they are going to require you to make a minimum purchase each month, and they are going to ship it to you and bill you each month. This is a requirement of some programs.

MLM is not a scam. Some MLM companies operate like near scams though, and do not tell you up front what factors will make it harder for you to succeed. Some will not disclose all of your operating costs (hidden fees), and some will misrepresent the earnings potential with the truth just in very fine print at the bottom.

Be on your guard before you buy into ANY program - read the fine print, and read it well. If something seems to be left out, ask about it. If you don't get straight answers, walk away.

Written by Laura Wheeler, MicroBusiness Website Developer, and founder of the MicroWebmasters Alliance

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