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Multi-Level Marketing Industry – What You Must Know

Today we are going to explore the multi-level marketing industry. What they are, how they work and if they are still a viable way to make money.

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We will also explore some other ways to make a living online that we have personal experience with and which we highly recommend.

Most articles you read about MLMs try to sell you something and there is always a catch. But this article is going to bypass that and just explain how everything in the niche works. You will know what is good and what is not so good so sit back and let’s start by getting an explanation on just what the MLM industry is.

What is the Multi-Level Marketing industry?


This is a pretty easy question to answer and a more difficult one all in one as it really is two questions. The first question is, what is the multi-level marketing (MLM) industry, and the second question being what is MLM.

Let us start with the second question first as it really answers the first question also. Because after you understand what MLM is you will then understand what the industry itself is.

Well, that was already confusing so let’s take a breath!

What is MLM?


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To boil it down into a nutshell these kinds of companies have two forms of compensation paid to their members. The first one comes from profits from selling goods or services and the second comes from a down line of people having been recruited and placed below you in what is called a level.

Some of these companies pay differently on each level and many of them have incentives for extra discounts on products purchased and such. But that is all window dressing on top of the two primary revenue sources.

These types of companies are also called pyramid selling, referral selling, and network marketing.

So, members have many different names depending on the company but for this article, we will call them distributors.

These distributors both have to buy products and or services at wholesale prices and then sell them to their customers at retail prices thus making the difference in monies as profits. But that is not all they do.

They are also asked to be recruiters and bring in new people to become distributors and when they do that the new distributor is put on a level downline from the recruiter.

Now, this recruiter will get a percentage of his new distributor’s profits on all sales this new person makes.

Pretty simple right? Well, no it is never that simple but it can be done and people do it every day and make huge amounts of money doing it. But it takes a huge amount of dedication and work to get to a level of that height in any of these companies.

What is the MLM Industry?


The simple answer to this question is, of course, all the companies that are in the MLM marketing business.

Amway, Avon, Herbalife, Mary Kay, Nature, Vorwerk, Perfect and the list goes on but you get the picture.

These are some really well-known names in the product business and they have been around for a very long time and this should tell the story of if they actually do work or not.

The key to what we just said was in the product business, as each and every one of these companies has outstanding products they stand behind. These products come first and foremost as without that they would be nothing but an illegal pyramid scheme and there are plenty of those out there for sure!

A company that promotes the profits from the recruiting side is in trouble from the beginning as they are a false company and they always fail in the long run. You have to have a product that stands alone to make this kind of business work. Period!

Is it profitable?


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Now that we know what MLM is and why it is what it is, can you make money at doing it?

That is really up to how well of a salesman or woman you are on top of how well of a recruiter you are.

One thing cool about most of these companies is that most of the time you will get your new recruits through selling the products or services.

The odds are in your favor of recruiting customers as new distributors, just as many people, like the idea of not only getting their product wholesale instead of retail, but also they can make money with their own downline while being a customer all at the same time.

If you use a good bit of products for personal use like Amway distributors seem to do you cannot lose.

Now on the ultimate level for those who are really driven, you can make a fortune with some of the better-known companies like Mary Kay. You can become the upper one percent which is about as independently wealthy as it gets and a pretty good lifestyle but as I said, you must be driven!

Our take on MLM companies


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We feel that if a person sticks to the MLM companies that have a proven track record and has what it takes to be both a seller and a recruiter, they sure can make money and even make a living working at MLM.

We also feel that for the most part the average person, even the good ones, cap out early in these types of programs. And while many of them claim they do it just to make a little bit on the side and get their products for wholesale, for the most part, it is a difficult line of work and one you really need to love doing.

Now we mentioned we would talk about another way to make a living working online and that is by building your very own online business that you have total control over and one where you control your destiny!

This article is getting a bit long-winded so if you are interested in a free look at our number one recommendation for building your very own successful online business go ahead and take the free tour by clicking here!

Thanks for checking out our article on multi-level marketing and we hope it helps you understand how the business works and what is involved in working an MLM program.

Stay tuned for more cool articles and please share us around your social media!

We want you to check our number one recommended program which provides true value, can be automated, can earn you a residual income, you can relate to and promote passionately and receive support and help.

Happy Marketing!

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12 thoughts on “Multi-Level Marketing Industry – What You Must Know”

  1. Thank you so much for this article.  I have tried two different MLM businesses and had no success, Beachbody and ItWorks.  I’m glad to see that there are some legitimate ones’ out there, and those two may be legit too, but I’m assuming I’m not a good enough sales person, because it never worked for me.

    • Hi Jessie,

      It was my pleasure as always writing this article.  I’m sorry that you didn’t see this piece earlier so you have tried two different MLM businesses and had no success, Beachbody and ItWorks.  Sure, there are some legitimate mlms out there, but one has to be an excellent salesperson to succeed in them.

      Thank you for your contribution to this talk.


  2. Hi, great article on multi level marketing. It is pretty difficult to find legit companies to join as so many of them just take your money and have false promises. I have wasted a lot of money in the past on a few companies and have gotten nowhere in return. I am thankful you are helping people become aware of the good ones to join.

    • Hi,

      I’m tickled that you found my article on multi level marketing great . While not all MLM businesses are scam, it will be pretty difficult to find legit mlm companies to join. This is because many of them are structured in such a way that you end up giving away your money based on their false promises.

      I’m not surprised that you have wasted a lot of money in the past on some of these companies and have gotten nothing in return.

      I am therefore happy to be separating the good from the bad so that people become aware and not continue throwing their money down the drain.


  3. I have always been on the notion that MLM is equal to pyramid schemes. Even after your review here, I find them a bit similar but you have said that there are some MLM platforms that one can still make good money from and to be honest, that is a very good feature of the MLM scheme. I now understand accurately all about MLM. Thanks for this broad explanation!

    • Hi Henderson,

      I thank you not only for being a regular visitor to my site but also for contributing to the discussions.

      I’m sorry you can’t equate all MLMs to pyramid schemes. No. Some of them have sound business schemes which allow you to make good money. Some people have become very wealthy promoting some MLM company products.

      If you now understand accurately all about MLM, then I have succeeded in my aim with writing this article: to let readers know what MLMs are and what they are not.

      It’s my pleasure giving all this explanation.


  4. Oh, very nice. Great instant review of the platform you have given here. I didn’t know this much about MLM before now except for the fact that not so many people can make a good income with it. I also know that many of the MLM schemes are either into the health and wellness niche or have dabbled into beauty and cosmetics. This is really nice to learn. How can one know an MLM with good record?

    • Hi John,

      I’m happy to see you here again. I’m even happier that you’ve again commented on a post. Thank you.

      Yes, in online business, often people ignore much about the business they’re doing. My aim is to fill in this void. That’s why you now know much about MLM.

      Yes, like you, many people know that not many people can make a good income with an MLM business.

      If many MLM schemes are either into the health and wellness niche or into beauty and cosmetics, I think it’s because they know these products interest people a lot. 

      How can one know an MLM with good record? Simple. Go online and look for reviews about it.


  5. This was really interesting. I thought I was familiar with the answer to your first question, but it’s good to go over it again to make sure it’s fully understood. I agree that MLM work can be a difficult line of work to get into. I appreciate that you have other ideas to recommend as the MLM route is definitely not a good fit for everyone!

    • Hi Aly,

      I’m glad that you found my article really interesting. Yes, often when one thinks one is familiar with the answer to some question, one finds that going over it again brings a full understanding.

      Of course, I can’t just find anybody who wouldn’t agree that MLM work can be a difficult line of work to get into. That’s why at the end of the piece I recommended other better businesses. What’s the need telling people that something is not good while not suggesting a substitute?

      Thanks for your contribution to this discussion!


  6. Thanks  very much for this great article admin because I have enjoyed it from the beginning to its end. By this article I have got to know what multi level marketing industries are, what they offer or do because all along I have been called by some of my friends who are already distributors in some of these companies but I had resisted but by this information provided I think am gonna try this out thanks for the information 

    • Hi Mugalu,

      Thanks very much for appreciating this article which you qualified as “great” because you enjoyed it from the beginning to the end.

      I’m happy that by this article you have got a good idea of what multi-level marketing industries are, what they have to offer their members or do. This is because all along you were being approached by some of your friends who are already distributors in some of these companies to join them but you resisted.

      Oh, so by this information provided you think you are gonna try this out? How happy I am!

      Thanks for your visit and for your comment.



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