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Choosing Your MLM Company

About Multi Level Marketing

Choosing your MLM company is a very important part about multi level marketing and stay at home mom businesses. You may also be interested in learning when MLMs go bad.

So how exactly do you join a Network Marketing company and stay a stay at home mom?

Choosing Your MLM Company

In Network Marketing, you can usually participate either as a customer, or a distributor.

Customer
A customer purchases products, at will, from a distributor for a multi level marketing company, paying retail prices. There are no minimums to purchase, and the distributor is available for customer service. The customer has no further investment in the company, and does not receive commissions.

Distributor
A distributor earns a commission, usually the difference between the wholesale and retail prices of an item, from selling the company's products to a customer. Much like in the direct sales industry of stay at home mom businesses. In order to become a distributor, one usually must purchase a starter kit, ranging from $30-500 typically, from the company.

Most companies require their distributors to make a minimum monthly purchase, ranging from $10-150, for their own consumption.

It is a rare MLM company that suggests or requires their distributors to purchase large quantities of inventory to sell on hand. (When MLMs go bad... this is one of the red flags....encouragement or requirement of inventory purchases.)

About Multi Level Marketing Monthly Purchases

Why a monthly purchase?

For two reasons:

This allows the distributors to promote products they are intimately familiar with.

This builds residual income.

If a distributor is going to promote a certain product, or a line of products, it is imperative that the distributor is intimately acquainted with those products. How hard would it be to describe the taste of a McDonald's burger if you've never tried it before? This is the same concept.

And residual income to stay a stay at home mom? This is good for the upline as well as the distributor. If everyone is making a minimum purchase every single month, then everyone in the business is earning money every single month. If a purchase is optional, and most distributors decide not to buy one month, the entire system collapses because no one will make any money.

Each company, of course, will vary on their start up fees and monthly purchase requirements. These are important things to consider when choosing your MLM company.