[I:http://internet-marketing-success.com/wp-content/uploads/2009/10/ArtBasmajian4.jpg]It is not simple to pretend to be a good networking company, but it is doable, and some are so good at it that they can seem like the best multi-level marketing companies you would ever have the choice of joining. They offer massive payoffs with virtually no work needed to be done in a particularly short time and at minuscule investments re liquid capital. It sounds like a good plan - only it’s not. And it is not even legal.

How to Tell One from the Other

There a few things that legitimate MLMs have in common with pyramiding schemes, explaining why the really good ones can pass off as the best multi-level marketing companies :

1. Both business structures rely on a good-sized network to function well and bring in profits, so recruitment actually is really essential.

2. The basic organizational structure is also the same - upline, downline and affiliates.

3. The payout system is comparable. You get commissions from your downline’s sales and you give commissions to your upline.

But if you look closely, you will see the slight variations in these aspects :

1. While the best multi-level marketing companies will encourage you to build up your network, your profits will depend mostly on your sales and your efforts, not your downline’s. Plus, you really have a product to sell which has valuation and practical use. The recruitment process is, therefore , just a means to an end and not the point of interest of your business plan.

The main reason why MLM firms are built is to deliver products in the most productive manner possible without the need to go through nonessential parties and lose overhead costs and operational costs. The net is reasonably adept in providing the medium for this endeavor, and that’s the reason why MLM companies are flourishing.

2. Pyramid schemes are downline-heavy, while the best multi-level marketing companies would have a better-balanced organization. Again, the reason is because pyramid schemes are out to ‘funnel’ the profits from the downline to the upline and not share it all round the structure in proportional means.

If the company that you’re looking at joining is giving you obscure answers about their products, if you don’t pay their enlistment fee first, or if it looks like their products aren’t marketable ( like say, overpriced gold coins ) don’t sign up. It may not be a pyramid con, but it won’t be rewarding for you either.

3. In much the same way as your profits will come from your attempts, your downline’s efforts will accumulate to their benefit first. Even if your downline stops right after you, they will still be able to earn income because the profits do not rely on their recruitment efforts but on their selling skills. And this is what makes the best multi-level marketing companies work. There are no piggyback rides on the lower tier’s efforts, and anyone who does not like inducting can still earn cash however.

In the end, pyramid schemes will always reach a saturation level, and the ones at the lowest tier will suffer the most. The best multi-level marketing companies, on the other hand, will always attempt to give you a long and fruitful business.

Concrete Examples

There are lots of businesses that have flourished with the MLM structure or system. Look at corporations like Avon, Tupperware, Sara Lee, and Mary Kay. You’ll notice that these firms have big name brands and quality products to sell, and you do not need to enlist members to earn money from their business plans. These are the hallmarks of the best multi-level marketing companies, which is why they’ve been around a long time.

A lot of people who hear the words “multilevel marketing” run screaming in fear of being scammed, or at least, being part of a scam. This could be due to the negative publicity that mlm marketing has been receiving to date. The notoriety of this business model (which is legitimate, by the way) springs mostly from the few rotten apples (read: pyramid scheme) that have made it into the multilevel marketing barrel.

One thing is certain: the main difference between the two is that mlm marketing is a legitimate business model, while pyramiding scheme IS a scam and IS definitely illegal - not to mention immoral and downright dirty. In layman’s terms, multilevel marketing is a highly social business model that seeks to cut out the middle man and lower the overhead cost, so that the end consumer isn’t paying for the storefront’s operation expenses, including labor, utilities, and even the traditional advertising media. Pyramiding schemes, on the other hand, will want you to invest your money on the possibility of big rewards for small amounts, but is actually just a transfer of money from the “downline” to the “upline” (to be explained later).

Too Good To Be True

If it’s too good to be true, then it’s more than likely that it is a pyramid scam. Just like a wolf in sheep’s clothing, pyramiding schemes mask themselves as legitimate mlm marketing businesses. Pyramiding schemes uses the same techniques and also the same processes in building a network.

The similarities between the two are that you have to sell a product and create a “marketing network” while you’re at it. Then there’s the deal with the “upline” and “downline.” You will either be sponsored by the “upline”, or you get to sponsor a “downline.” The advantage of the “upline” is that they get commissions from the “downline.” The one idea that would lead you to think that you are in a lawful multilevel marketing venture is that getting commissions from your “downline” is just akin to getting bonuses, while most of your profits come from your own hard work.

To Enter the Market

Multilevel marketing is a relatively easy business to get into, sometimes for investments as low as $29, which is in no way saying that it’s an easy business to thrive in. On the plus side of the equation, it is a very flexible business environment. You can stay at home all day in your jammies and still make a decent enough living. Formal education isn’t even necessary, but a bit of techno savvy does help.

These days, holding down two jobs is often a necessity - that is, if you can even find one job, let alone two. But the bills have to be paid and the kids have to be fed, sheltered, and sent to school. Instead of waiting in line for a low paying job, why not create an opportunity for yourself? The answer to your problem could be found in mlm marketing.

Don’t turn your nose up at it, or shy away from it (or run screaming in fear) because network marketing is a genuine and legal enterprise. It is not some fly-by-night operation that some people have made it out to be.

So what’s the deal?

From its name alone, network marketing is as what it says it is. It is about creating a web of entrepreneurs that will sell a product or a service to a consumer at the least possible amount.

It’s a lot like the fish from the market, actually. The fisherman has to go out and catch the fish then sell it to vendors who would then sell it in the marketplace for the consumer to buy.

The price of the fish is considerably higher by the time it reaches the consumer. To lessen the cost, why not go buy the fish directly from the fishermen? This is the goal of network marketing - cut out the middleman to reduce the costs.

The Upside and the Downside

MLM marketing is not a get-rich-quick scheme, so don’t expect it to be an easy one, either. Getting into network marketing is not hard. At most, all you need is a little capital, a bit of training, and a lot of help from friends and family. Most mlm marketing structures have them as the core group or the base group.

The good thing is that they are easy to access. The bad thing is that your network can’t rely solely on them, if at all. Think of them as training ground, but move on - and quickly.

Is MLM Marketing For You?

Well, it depends. Network marketing won’t be an easy ride. There will be failures in every success, but you have to weather through all of them to reach your goal. Read up on mlm marketing groups so you’ll know how the others are doing and if you can adapt their strategies for your own good. Take the first step and try.