The Pros and Cons of Network Marketing

Multilevel or network marketing is a fast-growing alternative to traditional retailing, in which products are sold through a chain of distributors. You will make your money by selling products and by recruiting new distributors. Each person makes money on the sales of the people in his or her “down line”, thus it's to a distributor's advantage to sign up as many people as possible.

The network marketing concept isn't bad. In fact, many well known companies use this form of marketing. Unfortunately, dishonest businesspeople often use the concept to scam people by closing down a company suddenly and taking distributors' money with them. Another common problem is that some network marketing companies make unrealistic promises about earning potential.

Successful network marketers put a lot of time and money into their businesses. And they can sell. So you'll need to have some sales ability and believe in the product. Have a sales strategy in place before you join. Check out the amount of training and back-up you'll be given. In addition, be sure the company's main focus is on selling its products rather than on making money by having people join up.

Source: http://www.life.ca/hb/mlm.html