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Internet Marketing Business Model – Two Good Reasons To Embrace The MLM Model

The internet marketing business model known as MLM (the initials stand for “Multi Level Marketing”) is often discounted as being a scam by people searching for ways to make a legitimate online income. This is because MLM so often gets put in the same category as illegal “pyramid” marketing or “Ponzi” schemes.

The reason for classifying MLM as a scam seems to be nothing more than the fact that the MLM company structure is built in a pyramid shape. If you were to join an MLM company today, you would be at the top of your own pyramid. Team members you recruit into the business would fill the next level and new members they recruit would be placed one rung below that.

You would get paid a percentage of your direct sales. You would also get paid (at a lower rate) a percentage of any profits made by your recruits, plus you would earn a smaller percentage of any profits the company receives from their recruits. Earnings usually cease at this third level but some companies offer commission payments through to levels five and even seven.

In any business you would expect to find the president (or company owner) at the top, vice presidents on the next level, managers one level below them, and so on until you reach the workers who occupy the bottom level.

If you wanted to draw a diagram to illustrate how the company hierarchy is made up, you would have to depict it in the typical triangular or “pyramid” shape. There is nothing wrong with this structure. In fact, all large companies are built the same way; it would not make sense for it to me any other way.

The first great thing to note about the MLM model is that is gives Mr (or Ms) Ordinary Person an opportunity to start a home based business without risking a large amount of capital. They can run their home business on a part-time basis while continuing in their everyday employment. The successful MLM marketer is one who manages to build up their business to a level where they comfortably retire from paid employment to work full-time as self-employed marketers.

The second great thing to note about MLM is that the earning potential is unlimited. The more you put in, the more you will get out; more effort = more money. There are no restrictions on the number of hours you can work, and there are no quotas to be fulfilled to qualify for commission. Effective network marketing does not just mean selling in large quantities; recruitment of new members into your sales team and training them is very important. The better training you give to your recruits, the more they will earn and, the more commission will find its way into your bank account.

MLM (or Network Marketing as it is often called) is not a new idea, but it has transferred very comfortably into an internet marketing business model. One of the most trusted internet MLM companies is SFI. SFI has been in existence since 1998. I have been a member of SFI since June 2004, so I can vouch for the way the company owner is continually striving for excellence in order to make SFI an even better way internet marketing opportunity.

SFI is a reliable source of income. However for safety’s sake MLM should not be your only income stream (remember what they say about eggs and baskets). It is a sensible safeguard to build further reliable streams of income.