Multi-Level Marketing, or MLM is a type of business in which the products are sold by means of referrals and word of mouth marketing. Experiencing a huge growth in early 2015, the name of the game here is getting paid based on your company level. Earnings are generally passed through levels, to the very top. In other words, the sales force here is compensated on the basis of what both an MLM business generates, with an addition to the earnings other salespeople achieve. However, owing to the fact that these businesses are mostly part-time-oriented, they generate a lot of bad reputation from their peer companies. We’ve come up with this article in order to dig deeper into this issue and give you insight into advantages of the MLM.

Hand with marker writing: Multi Level Marketing


Multi-Level Marketing companies, or network marketing companies work in such a way where the distributors are paid for work done by them, as well as by their peer distributors. This results not only in a drastic increase of the number of distributors in your downline, and thus a simultaneous increase in your income, but all that without the increase on hours spent working. When it comes to other forms of marketing, you need to shuffle through all hours of a day – including sleeping time, mealtime and various other activities and obligations. Unless you’re an owner, or high up the food chain of a regular marketing company, your income will dwindle in some point – this is something MLM doesn’t necessarily make you go through.

Low Initial Costs

Startups are a popular new way of business, relying on rapid growth, and a do-or-die way of thinking, where potential company shutdowns aren’t looked upon as that scary a thing. Network marketing requires little or even no money for a startup, while offering a high earning potential, with regards to other business types. However, you need to remain aware of the fact that, even though you do not necessarily have to pay anything for a startup, you will still need finance for your overheads – and this is the catch. Stock purchases, advertising, telecommunication, these all cost a certain degree of finance.

The Perk of Functioning on an International Level

One of the many bonuses the Internet has brought upon society, in addition to the mind-boggling levels of data and connecting people on a global-mindset level, is the fact that network marketing businesses can nowadays be operated globally – and this is one of the main reasons and advantages of the MLM today. In fact, the only limitation here is that it generally isn’t advised to sell your own product in countries outside that of your own. This potential “problem” arises due to the fact that, since the legalities differ from country to country, you’ll need work permit regulation, seeing as how it is ‘work’ that you’re selling.


Network marketing business require little preparation and previous knowledge. However, you should always look to come prepared, which is done by replacing risking your business crashing and burning to earn experience, with some proper network marketing training.


In order to prove that this way of doing business is effective, as well as beneficial, we’ve outlined a couple of successful MLM companies as examples.

  • LegalShield – This company specializes in pre-paid services. Founded in 1972, it comprises 50 independent firms.
  • Avon – By far, one of the most famous of the MLM examples, this company has been around for more than 125 years now.
  • Scentsy – This fragrance product business is a perfect example of a part-MLM company.

Even though Multi-Level Marketing has been around for quite some time now, it has spiked in popularity over the course of last couple of years, with tremendous help of the Internet. Even though many still regard it with disrespect and doubt, many entrepreneurs have been able to reach heights of success by utilizing this way of doing business.