In the internet world of multi level marketing (MLM) it is not such a difficult task to get ripped off. In fact, there are more people getting scammed than there are people making any money at all. There was a guru in the MLM industry who was duped by a well known TV actor to buy into an MLM. The guy was sitting in front of his television one late night and suddenly the actor came on in an infomercial and swung around in his chair to face the camera. He proposed a MLM program for 200 dollars and directed people to a site that would make them virtual millionaires if they signed up.

This guy followed suit like many others and signed up with the site using his credit card just to be presented with a product that was nothing but an endless list of similar sites asking for payment in order to get access to many sites that offered get rich quick schemes. This got our guru thinking about MLM and decided to start his own business – not to cheat people and he succeeded in making millions on the net through MLM.

However, this just goes to show that even gurus get cheated some time or the other. This is why it is important to be prudent in choosing the right MLM before doling out your cash. How do we go about choosing the right MLM? To begin with we sign up with as many forums as we can and research which MLM programs are actually earning people money. Once we have narrowed down our search and just to be sure if the posters of the forums are not paid posters, we analyze the MLM a bit further.

We should check to see if the MLM is not more than 5 years old. This makes it highly unlikely that you will be able to get affiliates. Get a feel of the producer and try to understand who your target market is. Ask yourself if people will really want the product and if there is scope for the product. Would you love to have the product, because if you don’t like the product you cannot successfully sell it.

Research who the owners of the company are and what their record is like. Analyze the compensation plan. Try to understand if it is fair or if the company is making more profit than you are from your sales. A good MLM will let you make more profit from each sale because they are making profits from multiple streams. Finally go with your gut feeling. One doubt and you should drop the plan of joining up. There will be many more opportunities.

In order to be truly successful in any MLM campaign it is important to have a huge down line. In order to understand the importance of a great down line and that too one which is made of performers who can bring in results, we must begin to understand how the technique of Multi Level Marketing, or MLM as we know it, works.

Multi Level Marketing is not about marketing the product or service at various market levels or market segments in other words. It is about creating multiple levels of marketing affiliates in order to reach a vast majority of people who consist of the particular market segment the product market is targeted at. It works like this. One man at the top of the MLM tree has a product to sell and he decides to offer an incentive to people to market the product for him. He succeeds in getting ten people under himself to sell his product. This is how his down line starts. These ten people are his first level and the second level in the MLM tree.

Let us say that each of these ten people in turn get five people each to market the product for them. This makes for fifty people working on the first level and they constitute the second level. This will get the top guy sixty people under him while each of the ten people have five people under them. The man at the top will earn from each of the sixty people under him while each of the ten people in his first level will earn from their sales plus a commission from the sales of each of his down line. If each person in the second level manages to get five or more people in their down line the top guys down line keeps growing and so do their profits. It is the people at the bottom that will ultimately earn very little.

It is important to build a down line in any MLM program. As earning from ones sales may not make much of a profit. It is equally important to pick and choose your down line carefully. Building a down line of people interested in the product and who can see a future in the MLM program are the ones who will rake in the profits. The people consisting of the bottom of the MLM down line will keep dropping off and new ones will be needed to replace them. These will be very few in number and depending on the up line’s capabilities of placing people in the weak sections of the down line the MLM will reap great benefits in a very short while.