Multi level marketing or MLM is a type of home business that provides a lot of opportunity. Multi level marketing can enable a person to make a lot of money if they understand the concepts behind it. An MLM business opportunity is something that is widely available so many people looking to get into a home business will likely be faced with a MLM business and they should understand the basics of MLM before ever considering going into this type of business.
Multi level marketing is often confused with a pyramid scheme. The reason for this is in both types of set ups people make money from getting other people into the business. However, with MLM there are actual products and actual money to be made. The people a person brings into the business is only like a bonus income, not their main source of income.
Typically, a person signs up for a MLM under someone else who is already operating their MLM business. What happens then is that for every sale the person makes the person they signed up under will get a commission on. To simplify look at this sample scenario:
Person B signs up under Person A.
Person B sells 100 products.
Person B gets a...