Are you Interested in Generating Some Extra Cash?


On The Plus Side

Why are so many major companies using MLM, which now accounts for tens of billions of dollars of sales each year? Because they can sell products through a distributor network without spending millions on advertising and promotion to build up consumer demand. Therefore, an MLM company is only as strong as its distributor network. To succeed, such a company needs many strongly motivate distributors. Distributors, in turn, are attracted to MLM for the following reasons:

  1. Discounts. If you're a distributor, you can buy the product itself at a discount. As long as you're working with products that you ordinarily use, or that your family members use, you benefit by buying wholesale.
  2. Pricing. MLM products may offer better value than traditional retail products because advertising and promotional costs are reduced. This is attractive to distributors who use the products as well as to those who use low costs to help sell the products.
  3. Flexibility. When you work in MLM, you set your own hours. If you have a regular 9 to 5 job, you can spend nights and weekends on MLM, increasing your income. Or if you have other responsibilities -- taking care of a young child, for example -- you can schedule your MLM activities to suit your convenience.
  4. Taxes. There may be tax benefits to working in MLM. Essentially, you become an independent contractor, eligible to deduct business-related expenses. A home office, for example, could translate into a big tax savings but you do need to meet the IRS's exclusivity rule: A home office must be used for your business only -- all of the time.
  5. Low entry fee. If you're interested in a business opportunity, you may have looked into franchising. Virtually any franchise would require you to put up thousands, even tens of thousands, of dollars. In a legitimate MLM venture, your up-front contribution usually is less than $100. However, although it is true that the cost of entering an MLM organization is much lower than the cost of entering a franchise business, it may not be realistic to expect your only cost to be one $50 distributor's kit. You may have to spend several hundred dollars or more to buy samples, sales aids, etc.
  6. Low ongoing costs. Most MLM businesses can be run out of a home office, with no need for employees, equipment, or inventory. The only inventory you'll really need will be samples for recruiting efforts and for direct sales to your own customers.
  7. No territorial restrictions. Many franchises limit you to a certain area. In many MLM organizations, you and your downline can sell to anyone.