What is a Multi-Level Marketing Business?

A multi-level marketing plan is also known as network marketing, is an administered marketing strategy that includes two or more tiers to commission overriding. It is a well-developed system to distribute products to consumers with your involvement.

mlm business

Still, confuse?  Okay, it’s like this, Company A  produces essential beauty products, now by developing MLM, Company A able to design and mage the sales income by recruiting more independent distributors to sell the essential beauty products.

Much better? Now you see why many people are tempted to be a part of MLM business?  Joining an MLM business does not require any recognition, you will be required to pay the amount based on the MLM business that you are joining. 

You probably be wondering, is MLM risky? Well, it’s not risky my friends, in fact, MLM participants have support from the direct selling company. You might also be trained and send for courses depending on the company. MLM has only one goal which is to distinguish products with no extra costs like marketing collaterals instead of using the network of distributors. More product selling, more money incoming.

So is MLM a pyramid scheme? Many people are confused about MLM being borderline scammy and being a legit direct marketing company. There are several ways that are able to detect to show the difference between scammy as in Pyramid schemes and MLM business software.

Multi-level Marketing is a marketing strategy that usually requires you to pay a low sign-up fee to no sign-up fee. MLM usually has the products and services of a real value and the product are usually in an affordable price range. Legitimacy is legal and the commission paid on multiple levels when the products or services being sold. Okay now for the pyramid scheme, it is a fraudulent scam that usually requires you to pay a high amount of fees, has no real products, and usually overpriced. The commission paid only to the newcomers and not to those been there, and the legitimacy is illegal. 

Trusting MLM business now? Not so fast. There are some shady and manipulative MLM companies that you have to be aware of. It’s as if they were set up to build money off its recruiters than from consumers out of the network.

Should you trust MLM business in Malaysia or not? How to know whether they are legit?

First of an MLM business must have Direct Selling Association Malaysia (DSAM)  and Suruhanjaya Syarikat Malaysia (SSM) certificates. You will be paying no joining fee or a very low joining fee. There will be no requirements on the monthly minimum order or demands on recruiting any downline if you don’t want to. The price of the purchase of the product is affordable.

So how to make money from MLM?

As an MLM distributor, you will make money from revenue streams, the first is money through sales of the products or services that you are selling. Generally, this will balance the revenue when you first begin. The second stream is commission on the sales that you made with your team members. As a distributor, you have expanded your network through recruiting newcomers and typically this will be higher than the revenue you will be getting for an individual distributor’s sales.

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