Both have their merits and what you do will vary based upon your goals and objectives. In the beginning of your business, the immediate money is made by selling products, however, the real long-term money is in the team building. I always tell folks to get ve or ten customers before they start recruiting distributors

Yes, network marketing is legal in the United States and many other countries. In 1979 Amway battled the Federal Trade Commission and scored a major victory for the network marketing industry. To be legal, distributors must focus on selling products and not get paid for the mere act of “recruiting” people.

You earn commissions and retail prots from your personal sales. And you earn overrides and commissions from your team’s sales. In essence, you are an independent contractor working as a salesperson for the MLM Company. Each compensation plan is different, but you normally get paid a certain percentage of your entire organization’s sales.

You can build a team initially by talking with people you know. Most people have a sphere of inuence of 500 to 2000 people. In most cases, you will be able to sponsor some of these folks to start your team. As time progresses, you should utilize the internet, paid advertising, and daily prospecting to nd new distributors

MLM is simply a distribution model. That’s it. Instead of products being sold to wholesalers, the manufacturer has an independent sales force to sell the products via word of mouth. Instead of spending money on advertising, the company rewards the distributors with commissions for selling the products.