MLM and Network Marketing -- What's it all about?MLM (also known as Network Marketing) is a business that pays freelance people money to distribute their product. What makes it different than a direct sales company? The plan allows it's members to invite others to work for their company and will pay them an override (or bonus) on that person's success. The history of the mlm/network marketing business began with Carl Renberg (sp?) and California Vitamins. He ran into two gentlemen who were marketing pros after WWII -- Mr. Mitinger and Mr. Castleberry. And these guys put together Carl’s referral marketing with a multilevel compensation plan which they learned by studying JCPenny. JCPenney had a program where supervisors get a percentage of people in their department. And the people above the supervisors got a percentage. Another industry that has a similar program is the insurance industry. This is how the entire business started. So How Does it All Work?That's an excellent question! The basic answer is that a distributor pays a fee to get their basic sales kit. At the time of sign-up you are encouraged to purchase a starter pack of the company's product. You can use this starter pack to use for yourself (and have some experience with your product), retail to others, or a combination of the two. The starter pack can cost anywhere from $100 to $1,000 depending on the company and the products.
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