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MLM is the perfect model for a home based business and has the ringing endorsement of entrepreneur Robert Kiosaki from the now famous Rich Dad Poor Dad book. And the internet offers the perfect marketing vehicle to MLM success if you take the time to learn it right.

While many people want to escape the rat race and develop their own home based business, it can be a trap for the unwary. The internet is a great source of ideas and systems but before buying into any it is wise to first invest in your education.

For those wondering about the MLM hype, here is some real information that I hope will dispel some of the myths and make choosing the MLM model easier for you. MLM is a marketing scheme used to sell products via networking. Unfortunately it has had the reputation with some of being a scam.

A common question heard: Is it a Pyramid or something? Pyramiding is normally a financial transaction, wherein a borrower promises a very high interest rate to the lender, and then eventually defaults on the payment.

Your primary responsibility in MLM is selling products. Those that gave the industry a bad name years ago, actually sold nothing. In MLM you do sell products, usually excellent products not sold any other way, thereby cutting out the middle man’s markup. Examples of products you may sell are health supplements, vitamins, herbal drinks, satellite dishes or even cards.

Indeed, MLM is growing industry and endorsed by the likes of Robert Kiosaki as the best way for an ordinary person to achieve wealth and financial freedom, it is little wonder.

However the compulsive desire to "get rich quick" and "live the life" is more powerful now than at any time. With so many disgruntled about the prospecting of working for a boss forever only to retire just over broke at 60-something, the movement is alive and well.

But first of all, if you remember the point about pyramid selling was that it was highly unstable and required new members being added all the time whereas network marketing is stable without growth. This is because goods are being sold outside the business structure to fund those inside the structure. MLM or network marketing is when you actually recruit other sales people into an organization or down line in order to sell products. And you as well as your recruits get paid on the amount of sales made. Network Marketing is a very legitimate and increasing business model. Many very well respected business leaders respect it.

One other distinct advantage of online network marketing is that all the leads generated online can be considered pre-qualified since the users are likely led to the web site because they are already looking for relevant information. Therefore, the chances of web users to follow up and consider becoming part of the business are much greater than traditional form of multilevel marketing.

One of the big benefits to network marketing is the low cost of entry. It costs roughly around $50 for a person to sign up as a distributor as he/she has to pay only for the cost of the training materials. Yet it offers the ordinary person like you and me a real opportunity to amass wealth.

Network Marketing is a proven business system, which has been in existence since the 1940’s. Income is generated in two ways - through personal sales and bonus earned from team building. Network marketing is all about duplication. Successful network marketers need to have a system for showing new recruits exactly what they did to become successful. Network marketing is not just a sales business. In fact for those who make it big, its a teaching and mentoring business, although there are those, myself included, who do this through the internet using blogging, microblogging, social networking and email, with the backup of conference calls as needed.

But success in networking isn't based on luck, success in network marketing is based on following some very basic rules, namely building relationships. Some say that's why network marketing is a natural thing for women to do yet your might notice that most of the big names on the internet are men. Women MLMers and internet marketers are sure to be the next big force and remember women are natural networkers.

Recession can be the Network Marketer's friend, but it might not be yours. I'm not saying this is good or bad, but for those people who let recession anxiety drive them to a home based business, remember to do your due diligence. The network marketer is responsible for selling the company’s product/service for a commission. When you get the Network Marketer e-book, you not only get a manual on Network Marketing that represents value for money, you also secure the rights to access to a complete marketing system, links to a huge number of affiliate programs, and access to an incredible amount of free resources. Indeed multiple streams of income is the cornerstone of some of the most successful Internet Network Marketers out there.

The marketing thrust of any MLM can seem to be directed to prospective distributors, rather than product promotions to purchasers. This is what helps you to grow your business by finding other business builders. You could then say that it's true the MLM products are not long distance phone services, vitamin pills, health potions or skin lotions, but rather the investment propositions for new distributorships. The beauty of MLM is the fantastic amounts of money that can be made offering almost any viable product or service. People are eager to join MLM programs.

The truth is, MLM is not inherently good or evil any more than capitalism is good or evil. Both can be done ethically, and both can be done unethically. Similarly, when properly implemented, MLM is different from traditional retailing AND franchising, but can be a very effective way to do business.

Francine Pullman is an MLM Coach and writer based in North Queensland who has written for many publications across Australia. For more free info go to http://tinyurl.com/mlmprofits or follow Francine at www.twitter.com/fpullman

Article Source: ArticlesBase.com - Is MLM the Perfect Home Based Business Model or Just Another Scam?