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MLM is short for multi-level marketing. It is a marketing strategy where you are compensated for personal sales, recruiting new distributors, and helping them make sales and recruit. It is also known as network marketing and is a great way to start an online home business.

As a business model this has been around for over 50 years now. However, it is amazing that people still do not really understand MLM programs. Let's take a look at the 3 most common questions people have about network marketing.

1. How do I make money? You make money by personally selling products. This is known as retail sales, and is no different than any other business.

You also make money by building a downline of distributors. You earn money when they purchase products, or they sell products.

There are various compensation plans in network marketing and your income will depend on the network marketing company itself.

2. How do I sell the products? You can order products directly from the company, and sell them to your friends and relatives. This is how many people choose to get started and is common in direct sales organizations.

eCommerce has become a popular way to sell the products in an mlm company. You are given a website to promote which contains the products people can purchase from you.

When a customer makes a purchase they pay the mlm company directly. The company also ships the products directly to them.

This means you no longer have to take the products directly to your customer, or collect from them. This has made it possible for people to make a lot of money retailing products online.

Some network marketing companies have a product that is used up and needs to be re-ordered. Autoship is a business term where the customer sets up an order that is automatically shipped to them every month.

This is great for you because you make money over and over for your one sale. This is known as residual income.

3. How do I recruit new members? You can deal with people directly and sponsor them face to face. You can also use the Internet to enroll new distributors.

Internet marketing is allowing people who have never made money in network marketing to now do so. You spend the majority of time driving traffic to your network marketing website.

The mlm company has a system for capturing names, following up by email, and enrolling new distributors underneath you. It is now possible for anyone to build a network marketing business who may not have been able to do so in the past.