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You may also hear this kind of business referred to as:
With this type of online business you’d be a salesperson for an MLM company that sells physical or digital products.
You’d make money by selling the company’s products but the big earnings come from recruiting other salespeople and getting a percentage of their sales, then a percentage of sales from the people your recruits recruit, and so on down the line.
Multi-Level Marketing is one of 19 types of online business and considered a Level X online business, according to our framework.
Okay for side income or beer money, but hard to earn a living.
Best for earning a living online when you’re starting out, but hard to scale.
Easier to scale and higher income potential, but you usually need significant investment of time and/or money upfront.
Even more scalable and even higher income potential, but also more complex / difficult / expensive.
Most complex / difficult / expensive, but the rewards here can be massive.
These are the misfits. Many aren’t even considered businesses in the traditional sense, but they are all ways to make money online. You typically need a lot of time, money, or luck to succeed with anything here.
Unfortunately, it seems that making money with multi-level marketing is almost impossible.
There have been a number of studies and investigations into the earnings of MLM participants – Wikipedia has a handy list – and frankly they’re all quite discouraging.
The most recent, large-scale MLM income report I found was a 2018 survey by Magnify Money.
They surveyed 1,049 MLM participants and these were their key takeaways:
The hourly earnings of those surveyed worked out to a paltry $0.67 per hour:
Marsha here represents a typical MLM participant…
I wouldn’t recommend it.
The odds of making good money here are ridiculously low and, if you ask me, MLMs have too shady a reputation to risk associating yourself with them.
This is something of an oxymoron; it’s hard to consider any MLM training to be good since the entire concept is fundamentally flawed.
However, we have reviewed many MLM and network marketing training programs, and these are the “best” of them…