MLM Business: What Are The Several Types?

What is an MLM Business?

First of all, an MLM business is a type of business that is word of mouth. It’s comprised of three major factors: the company, the distributors, and the client. The company, in which all the products come from, hire the distributors. Then, the distributors, usually normal people with normal lives, are the ones that advertise, market, and sell this to their respective clients. You might ask that how the distributors earn their money. The answer is simple, they get their respective percentage from the profit of the product they have sold. They are basically middle men. They make their own strategies on how to sell product. And usually, these distributors are normal people who more often than not have jobs, and they have an MLM business as a sideline. Because you can be part of it, there’s no requirement on what you do in life. If you have a passion and desire to create income, that’s is all you need to become a distributor.

MLM Business
mlm distributor

MLM is just like any other business. It functions the same. But instead of selling goods out of a store, a shop, or in an office, it contracts with people to do their selling as independent business people or also known as the distributors. Then, these individuals go and sell, and in most cases – they find new recruits and train them to eventually become distributors.

Different Types Of An MLM Business

There are three types of Multi-level Marketing (MLM) businesses, based on their major source of revenue: those that sell a product, those that sell a service, and those that sell memberships. This business is made very appealing and inviting to potential salespeople or distributors because these people earn commissions not only from the sale of the goods or services they sell, but also from the sales of those they invite and recruit to this business.

Sell Products

mlm productsMLM businesses that sell products usually manufacture their own products. Examples of these are make-up, cosmetics, house-ware, etc. These products are then being sold by the hired personnel – the distributors. They are the ones that are in-charge of marketing, advertising, and selling the product. But of course, they would have to know the product to be able to sell it. That is why, the usual thing that happens is that the pioneers of the hired personnel are being given samples of the products for them to know and trust both the company and the product. Because of course, it is better to be able to sell your product when you know it and you fully trust it and its company. You can also answer the questions of your clients on a personal basis, which will become more trustworthy for the client’s part.

Sell Services

membershipThose that sell services market the company’s services the same way as the product-selling associates, and are compensated just the same. But instead of selling a product, they sell memberships to the company’s service. An associate must constantly find new clients to maintain a good income. Service-oriented MLM’s sell online education plans or home-school services, club memberships, legal services, and even financial services. There are lots of types of services that are being sold through a multi-level marketing kind of strategy. Really, there are all kinds of services are being sold this way.

Sell Memberships

third mlm businessThe third type of business sells memberships. These MLM’s concentrate on recruiting new associates. There’s also little attention given to selling a product or service. These businesses pay associates a significant commission for recruiting new associates, providing added incentives to seek income from a source other than the company’s product or service.

There are lots of these types of business, furthermore, there are a lot of new MLM business opportunities. The key in being in the right business is that you asses three main points. First, ask yourself if you trust the product. Second, ask if you trust the company. Third, picking the right market to sell it to. Because obviously, you can’t just sell anything anywhere at any time. You can’t sell make up to a market full of men and old people. You can’t sell construction materials to women in general. It’s all in timing and your choices. The success of your own business will be marketing to the right people.

Not all MLM businesses have actually succeeded. Nobody’s perfect, right? It’s just a matter of timing. We also can’t assure you that there are no SCAMS in the MLM business. But then again, not all kinds of businesses actually make it. mlm incomeThere are so many other types of businesses that also have scams. It’s all about learning how to take risks and making the right choices for your business to earn the money you want and need.

To learn more about the MLM business, how to handle it, and even learn about residual income, visit us here and even get free tutorials to help your business.



Rick Billings
Cell/Text: 407-733-3502
Skype: rbillings3
Mobile Business Card:

P.S. If you’re looking to create an additional income stream, feel free to reach out to me and let’s talk.

Rick Billings

Rick Billings is one of the top leaders in his primary company. He trains people in online and offline marketing and values building relationships with new people he meets every day. If you're open to earn an extra stream of income see what Rick has to offer. Click Here