by Roxanne Anderson

Created on: October 26, 2009   Last Updated: October 27, 2009

If you are looking for a home based business or have ever looked for one, I am certain you have heard about MLM (Multi Level Marketing) or Network Marketing. A business following the MLM model is a direct sales business where most of the income is made from recruiting other distributors into the company. Each distributor brings in a number of other distributors into their business group and then earns commission on sales made by everyone in their business group.

This type of business gets a really bad rap. Sometimes they are referred to as pyramid schemes. In fact, there are some scams out there that have created that perception. Those scams are based around the one initial person who starts it up and that person reaps all of the benefits and profits. You should be careful of anything that resembles this type of business. A real MLM or Network Marketing company is NOT a scam at all. It is an extremely lucrative business to get involved in if you follow a regimented proven plan.

There are a number of Network Marketing companies that have been around for 20, 30, even 50 years. These are the most established companies that you can trust. You know they are not going anywhere since they have a long track record. It is nearly impossible for these companies to be scams because scams surely won't last this long! Many people make a full time living working from home as a distributor in network marketing and most of them are involved with one of these long standing companies.

Network marketing companies pop up pretty often and usually make claims that you can make a lot of money fast. These companies are not scams BUT should be looked at closely. MLM companies go in and out of business pretty regularly so you should research the company thoroughly before jumping into anything.

MLM is absolutely not a scam. If you are considering entering into the business, choose a company with a long history and quality products. Talk to some people who are already involved with a company to see if it might be a good fit for you. Be careful of anyone who tries to convince you of an overnight solution to your problems. Network marketing is a business, and like any other business it takes time to make an income. It is possible to turn Network Marketing into your full time career but certainly not in 24 hours. Don't ever let anyone convince you otherwise.

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