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What is MLM ? Multilevel marketing is a strategy some direct sales companies use to encourage existing distributors to recruit new distributors who are paid a percentage of their recruits’ sales. The recruits are the distributor’s “downline.” Distributors also make money through direct sales of products to customers. Amway, which sells health, beauty, and home care products, is an example of a well-known direct sales company that uses multilevel marketing.

MLM Terms: Upline: The upline consists of the representative sponsors who came in before you. For example, if rep A recruited rep B, who recruited rep C, who recruited you, your upline is C, B, and A.

To stay safe from pyramid schemes and MLM scams, arm yourself with knowledge. Learn about the direct sales industry as a whole, research MLM companies carefully, and determine if you’re a good match with your sponsor. The truth is, while you can get rich in MLM, statistics show that less than one out of 100 MLM representatives actually achieve MLM success or make any money. However, that’s not necessarily the MLM business’ fault. Most athletes never make it to the Olympics, but that’s not sport’s or the Olympics’ fault.

In terms of economic background, MLM customers profile according to the products or services being offered, but generally trend toward a middle-class audience. Most people can afford to purchase Tupperware or Mary Kay, and may want attend a party to check out the products regardless.

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How does the Unilevel MLM Plan Work? This title tends to make users think that the Unilevel MLM plan is a one level plan. This is not entirely true as it involves two to ten levels in depth. With the Unilevel MLM plan, a user can sponsor to the nth level. The sponsor gets a dividend from the business volume of every member in his down-line. The Unilevel MLM plan has some advantages that make it an MLM plan every MLM organization want to subscribe to. It is very easy to understand and operate since its calculations are less complex. With an unlimited width plan, the Unilevel MLM plan allows a sponsor to have several distributors under him while allowing the distributors to further have several other sub-distributors.