What is MLM?

MLM is an acronym for Multi-Level Marketing, sometimes called Network Marketing.

As the name suggests, multiple levels of people are marketing a product to consumers. A sales representative (also referred to as a distributor, member, affiliate, partner or associate) gets customers and recruits and trains another sales rep to get customers.

MLM (Multi level marketing) diagram

Sales rep gets customers and trains another sales rep to get customers

Multiple levels of marketing are actually what all companies desire (both MLM and non MLM companies). If you’ve ever heard a traditional company announce, “Refer a friend and you’ll receive a discount on your next purchase,” this is multi-level marketing. Health clubs, real estate, telecommunications, and countless other industries use this technique. Professionals (doctors, dentists, accountants) live or die based on their customers telling others about them. All these businesses are simply trying to get current customers to advertise and market their product or service to potential customers.

The Traditional Company

In a non-MLM company, a sales manager and sales reps are hired by the company. The company is limited to the number of sales reps they can hire based on the financial resources the company has to pay salaries and on the traffic the sales manager can handle. Once a sales manager is overwhelmed, the company can hire another manager or convert a sales rep into a manager. This could be called “Multi-Width” marketing because it expands the organization horizontally as compared to “Multi-Level” marketing, which expands its organization vertically.

Mulit Width Marketing

Traditional companies (non-MLM) use “Multi-Width” Marketing

The MLM (Multi Level Marketing) Company

An MLM (Multi Level Marketing) company “starts” by recruiting one person who gets customers and recruits sales reps (just as above in the traditional company). But each sales rep is also given the option to become a manager, who can also recruit sales reps. The MLM company only pays commissions, not salaries; therefore, there are no limitations on the number of sales reps or managers an MLM company can recruit. This is beneficial to the company because of rapid expansion by the number of trained sales reps. This is also beneficial to the sales reps because their income isn’t limited to only what they can sell – they can also earn commissions for having trained other sales reps.

(Multi Level Marketing)

MLM uses “Multi-Level” Marketing, which is similar to traditional marketing (see above illustration “Multi-Width-Marketing,”) except there is no limit to growth.

Very simply and factually, MLM (Multi Level Marketing) is one of the five main methods used by a company to sell and distribute a product or a service to a consumer.

All companies (MLM or traditional companies) have one main characteristic in common: they provide a product or a service that hopefully makes a consumer’s life better. Once a company has such a product or service they need to make it widely known. They do this by distributing it. Distributing a product involves finding customers and getting the product in their hands. There are five primary ways to distribute a product or service:

The Five Primary Ways to Distribute a Product or Service


Company rents or buys a store in busy area to get walk-in traffic. Hires sales person to communicate with customers who walk in.


Company buys
addresses. Hires marketing person to write and send written communication about products and or services through the mail.


Company buys
telephone numbers of prospects. Hires and trains sales people to call and sell products/services via the phone.


Company puts up a web site and advertises to get traffic. Similar to direct mail, the marketing occurs through written communication.


Company recruits a distributor (sales representative) to sell products. Grants sales person right to recruit other sales reps to sell products.

Each of the five methods above can use techniques from one or more of the other methods to get customers. Meaning, a Store Front isn’t limited to only walk-in traffic. The Store Front can also advertise on radio, television and in newspapers, magazines, and mailers (post cards, flyers, etc.) directing prospects to the store location. This can increase the number of people walking into their store.

Similarly, a distributor in an MLM company can use some or all of the 4 other methods as well as getting customers through friends and family. And of course an owner of a store front (such as a restaurant) can also tell his friends and family about his store!

So what is MLM (Multi Level Marketing)? The main point to understand is that distributing any product means to make it known. MLM and the other four primary ways to distribute a product are simply methods used to make a product known.

MLM is Organic

Organically, the MLM industry is a fantastic model. By “organic,” I mean that if you strip away all the hype and noise and just look at it conceptually, it is the purest way to move a product to a consumer and the purest way to be compensated. Here’s why…

  1. In its organic state one person shares a valuable product or service with another (not because they will profit, but because the product is valuable). “I like it, maybe you will too.” That is clean and pure.
  2. A person shares a business idea with another – this is the foundation of all businesses throughout history. “I found a business I like and maybe you’d like to work on it with me.” That too is clean and pure.
  3. The person who shares the business with another ONLY profits IF the person they shared the business with succeeds – that is ultra-responsible, which is also clean and pure.

Those three steps are the organic concepts of MLM and are absolutely brilliant.

If you strip traditional marketing down to its core, it would be a person writing an advertisement and 98% of the people who review the advertisement not responding (a top marketer gets a 10% response; the average is 2%).

Look around and see what all it takes to move a product to the consumer in the “traditional” sense, and you’ll see a lot of wasted actions and resources. Can you imagine how pure a city would look if there were no advertisements? Think of the number of trees that get consumed in the name of advertising, and the materials that then end up in land fills.

Perhaps a good way to describe MLM is to demonstrate how MLM is the same as a traditional company, and also how MLM is different. Look at this diagram for a visual.

Please understand that I am not criticizing the use of trees, the cluttered environment, or advertising – I’m simply asking you to look at the amount of unnecessary actions that go into moving a product to a consumer, as compared to the simplicity of one person communicating with another.

Recommended next page: How does MLM work?

Tim Sales built an MLM business with an income of over $150,000 per month with 2,400+ new distributors joining per month. He now creates MLM training tools and sales aids for everyone in network marketing. To discover Tims' proven network marketing ideas and strategies that will grow your MLM business faster, visit www.FirstClassMLMTools.com

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  1. sag_awa (November 29th, 2007 at 11:45 am)

    Very pleased with the simple, effective and non-biased explaination of the MLM/Network Marketing Industry. A great read for getting the big picture of MLM and its comparison with other forms of marketing/distribution. Thank you.

  2. annalaurabrown (December 28th, 2007 at 5:30 am)

    thanks for creating this. It is awesome. I have already linked to the site on two of my pages. Very informative site.

  3. stacey (December 28th, 2007 at 5:44 am)

    Great site full of terrific information! Thanks for making this available to us all! Keep up the great work!

  4. Pam (December 28th, 2007 at 5:59 am)

    Love the visuals with the explanation. Best explanation I’ve seen. Thanks!

  5. Doug Lee (December 28th, 2007 at 6:10 am)

    Awesome article. Breaks down MLM in it’s simplest most understood state. Proof we are in the best industry there is.
    -Doug Lee

  6. Diana (December 28th, 2007 at 6:27 am)

    I thought this article was very informative and concise. Really gets to the point of what MLM is all about. Thank you.

  7. Russ Powell (December 28th, 2007 at 6:28 am)

    Tim, your philosophy on making other people lifes better, is the same thing I base my life on. There is no greater joy than teaching someone something and then see them be able to do the job themselve. Thanks, Russ.

  8. Russ Powell (December 28th, 2007 at 6:29 am)


  9. Auggie (December 28th, 2007 at 7:11 am)

    Thanks Tim for this professional work. You’re a professional and have always been. Thanks for helping educate the unthinking, and incredulous. Good work.

  10. Maggie Williamson (December 28th, 2007 at 7:19 am)

    I love this! The “clean-organic” concept really appeals to me in an age where we are barraged with marketing ads.

  11. Marilee (December 28th, 2007 at 7:25 am)

    Beautiful explanation. Clear and concise. Thanks!

  12. Tom Pacheco (December 28th, 2007 at 7:29 am)

    Tim, great explaination on the subject matter. Thanks again.

  13. Ryan Allison (December 28th, 2007 at 8:02 am)

    Awesome article. It really helps to show how professional this industry is, and the amazing results people will accomplish if they treat it professionally as a business!

  14. Jacob Camacho (December 28th, 2007 at 8:22 am)

    Thank you for confirming my decision to join one of the largest and more successful industries worlwide. I understand I am running a real business and not a hobby or scam.

  15. Viviane Raven (December 28th, 2007 at 8:29 am)

    Very effective explanation on MLM. Keep the positive coming as we all need to enlighten people that this industry really does work.
    Keep up the good work!!!

  16. Patti Roney (December 28th, 2007 at 8:33 am)

    As someone who has succeeded in this industry and who came with no experience or true understanding of MLM, I’m so thankful for truth to be told. There are sooooo many people who can benefit substantially from this industry if they just learn the reality and the beauty of what you’re calling “organic”. I agree fully with the above articles and hope many people have lives changed by this industry as I have.

  17. Robert Lefebvre (December 28th, 2007 at 9:33 am)

    I like this article because it really simplifies the picture as to what we have to do has distributors. And at the second level, this is what makes realize that if you do it right (getting customers, getting good partners to work with and TRAIN them), you’re business will expand.

  18. Gary Dempsey (December 28th, 2007 at 9:36 am)

    Thanks Tim for tipping the scales for those people that are so close to joining MLM but are held back by that small degree of doubt which comes from not thoroughly being educated in the field.

  19. Anonymous (December 28th, 2007 at 10:02 am)

    Thanks for your great pictorial representation. I am using this tool which is making a great difference. Appreciated. Dr. D P Acharjya

  20. Dr. D P Acharjya (December 28th, 2007 at 10:03 am)

    Thanks for your great pictorial representation. I am using this tool which is making a great difference. Appreciated. Dr. D P Acharjya

  21. Randy (December 28th, 2007 at 10:05 am)

    Great information!

  22. Randy (December 28th, 2007 at 10:06 am)

    Thank you Tim Sales!

  23. Mats Strömberg (December 28th, 2007 at 10:12 am)

    Excellent explanation about our industry! Thanks Tim, for making this available for us all.

  24. Jamie Masters (December 28th, 2007 at 10:29 am)

    Great stuff Tim! It’s nice to have someone of your caliber clearly and objectively explain the business model of MLM.

  25. Maureen G. (December 28th, 2007 at 11:14 am)

    Thank you so much for providing this informative resource. There are many people who still have misconceptions about MLM and your article helps clear up those misconceptions. I will certainly be linking this site to mine!

  26. Kim Bolte (December 28th, 2007 at 11:44 am)

    Tim, Thanks for this site, the industry owes you one. Just like in your “Brilliant Compensation” CD there isn’t a wasted word here.
    Describing MLM as “organic” really gave me a lot to think about.

  27. Liz (December 28th, 2007 at 11:59 am)

    Lovely – really clear and great graphics.

  28. Helen Wenley (December 28th, 2007 at 11:59 am)

    Thank you for your clear explanation. MLM can benefit so many more people – they just need to open their minds.

  29. MarvinDXN (December 28th, 2007 at 12:09 pm)

    Great articles! Thanks, Tim, you hit the nail right on the head. You’ve cleared a lot of misconceptions about MLM, and have given the right perspective about this great opportunity.

  30. Stephen Tsai (December 28th, 2007 at 12:10 pm)

    Thanks Tim. I am really impressed with the simple and balanced view in explaining MLM. I have been in Life Insurance Selling for over 29 years. I am one of those people from whom people should seek opinion because I had succeeded in doing it. My last 10 years was dedicated to helping other people succeed in our industry and I look after agency training & development of a very large life company. I have been following Brilliant Compensation and your work for almost 9 years. It has not only helped me learned about a great industry which has a lot of commonalities to what we are doing in life insurance, it also provided me with lots of ideas, knowledge and skills that I had put into use in helping insurance people how to find, keep and grow their business as well as recruits. I like the way you have written it, and I give it full marks. Best, Stephen – Hong Kong

  31. Dyann Lyon (December 28th, 2007 at 12:28 pm)

    Tim, Thank you for all you do for the MLM industry. You are a Master and the very best at breaking it down to the simplest of points so that anyone can get a clear picture of how it works and why it works. The ideas you expressed of MLM being organic is brilliant and right on! A devoted fan!

  32. Carrie (December 28th, 2007 at 1:10 pm)

    Excellent presentation of the industry and great insight to highlight the similarities of focus between MLM and traditional marketing. And I am absolutely impressed with the article on who to ask advice from. Not only is that applicable in business, it’s life-applicable. Great Job!

  33. Dee (December 28th, 2007 at 1:24 pm)

    Tim, thank you for put your time, energy, and effort into assisting others. Great Leadership.

  34. Joe Kresser (December 28th, 2007 at 1:56 pm)

    I have only been in MLM for three years. Looking back I was like a lot of people who do not understand the concept. I listened to those who had failed or were negative. The way you simplify things for the common person is great. I wish that I had started 20 years ago. The beauty of the MLM industry is that it dosn’t matter when you start. What matters is that you start. Thanks Tim for what your doing.
    Joe Kresser Cincinnati, Ohio

  35. Jimmer (December 28th, 2007 at 2:11 pm)

    Perfect example how the sales rep becomes a manager. This is the average sales rep’s dream (to be promoted). I would add even one more stage of development when the happy customer decides to be a sales rep (and then a manager).

  36. Terry Schmeltzle (December 28th, 2007 at 2:16 pm)

    Thanks Tim….I am using your CD “Brilliant Compensation” and now we have another “GREAT” tool….this certainly will go a long way in teaching others that this form of distribution is an Honest and Pure way of doing business…

  37. Arturo Murillo (December 28th, 2007 at 2:19 pm)

    The MLM industry is now better understood. The presentation is superb and impressive. Our group has gained more confidence in pursuing our MLM business in the Philippines.

  38. Cyndee (December 28th, 2007 at 3:05 pm)

    This is great! Thanks for all your time in putting this together. Very understanding. Now I hope to work my way up to manager.

  39. Fernando M Moura (December 28th, 2007 at 3:13 pm)

    Tim, yours explanations are allways very simple in anyone anderstand. I get in MLM after see your video about MLM. Thank you again for the initiative.

  40. Claire Fish (December 28th, 2007 at 3:34 pm)

    Great article! You are an inspiration to all.
    I appreciate your willingness to help others succeed.

  41. Tambria Alexander (December 28th, 2007 at 3:51 pm)

    Great Article – explains the concept in easy to understand terms. I also like the way it compares traditional marketing with MLM. We all know this inutitively, but never think about it. Thanks for providing such a clear and concise explanation in such an objective manner.

  42. Tambria Alexander (December 28th, 2007 at 3:53 pm)

    Great Article – explains the concept in easy to understand terms. I also like the way it compares traditional marketing with MLM. We all know this intuitively, but never think about it. Thanks for providing such a clear and concise explanation in such an objective manner.

  43. Joan (December 28th, 2007 at 3:55 pm)

    I joined MLM a little over a year ago. I have never been in MLM before, and have been struggling with the whole concept. I recently was introduced to your site/s. You have given me a fresh outlook and a clear understanding of what it is I have gotten involved with. As well as, the how to and not just what to do. Thank you for stepping up to the plate and helping a whole whole lot of us. I sincerely appreciate your selfless care and support.

  44. Joe Torbay (December 28th, 2007 at 4:44 pm)

    As usual Tim, clear, accurate and well communicated.
    Thanks again for all you do for this industry.

  45. Patsy (December 28th, 2007 at 5:15 pm)

    Thank you for making it all so clear and easy to understand.

  46. Patty Jones, KY (December 28th, 2007 at 5:21 pm)

    Thank you for starting to change the worlds view on MLM. I wish I had started this 25 years ago when introduced to an MLM. However, I like everyone else, thought it was a gimmic, was I wrong. Here I am 59 years old and find myself starting over, MLM is my only way to financial freedom at this stage of life. You know it is a hard business but one with lots of intregity. I will be adding your link my website. Thanks again.

  47. Nancy Miles Ross (December 28th, 2007 at 5:51 pm)

    Thank you, Tim, for all you do for the industry. This article is awesome. It truly helps a person understand the difference between MLM and traditional marketing.

  48. Bud Staroba (December 28th, 2007 at 6:27 pm)

    Tim, very well done.I share your views and your vision for the future of MLM.I thank you very much for putting this site together and I have begun to spread the word about this site and it will be linked to everything I can link it to

  49. Ruben Salazar (December 28th, 2007 at 7:10 pm)

    Awesome article, GREAT unbiased website which will benefit the M.L.M. industry. CONGRATULATIONS!

  50. Diane Barnes (December 28th, 2007 at 7:59 pm)

    I really appreciate this article. It really makes people wake up and realize that MLM is really no different than the rest of corporate America.

    Everything that exists, is MLM when you really get down to brass tacks.

  51. Trry Kilburg (December 28th, 2007 at 8:07 pm)

    I just finished reading this! Very well put-together, Tim! Thanks for all your time and investigation. I think this will create a solid principle that will be carried throughout time by MLMer’s and together we will revolutionize the World!

  52. Georgeemo (December 28th, 2007 at 8:13 pm)

    Tim,this is a terrific site you have built for all of us in Network Marketing.I am going to link this page and direct the sceptics here.Anybody who spends five to ten minutes reading this information has to be excited about industry.
    Thank you!

  53. Steve Stearns (December 28th, 2007 at 9:10 pm)

    I love the way you clearly explain how business is done in network marketing. You take great care to make sure the words you use are defined so we all understand. You even have links to define those words that I may know, but not everyone does. Great job.

  54. Michelle (December 28th, 2007 at 10:36 pm)

    Great explanation. Thanks for providing us such a great tool.

  55. Damayanthi (December 29th, 2007 at 12:42 am)

    Thanks for making this so simple, that anyone could understand. Love the visuals – makes so much sense. Great resource to educate people who are unsure about MLM.

  56. Di (December 29th, 2007 at 1:03 am)

    Absolutely Brilliant, finally real unbiased info for people to have a read of , let all make up their own mind once they have read all the info, Brilliant on yu Tim Sales

  57. Padma (December 29th, 2007 at 1:17 am)

    Hi Tim,

    Am with a great network mktng company. Had a tough time getting started. But i’ve had explosive growth after procuring the Brilliant Compensation DVD. And this website adds immense value to the MLM industry. Thanks a ton.

  58. Dave Gilliland (December 29th, 2007 at 6:25 am)

    Great Illustration. Would rather hear about something from a friend that I trusted than from someone I didn’t know.

  59. Sandy Martin (December 29th, 2007 at 6:59 am)

    Thanks, Tim – this is a great explanation.

  60. Daren Mudrey (December 29th, 2007 at 7:51 am)

    Great written summary of “Brilliant Compensation” !
    Tim, you continue to be a great ispiration to me on how to do MLM with the “right heart” (genuinely caring about my prospects). Thanks a million!

  61. Gina (December 29th, 2007 at 8:37 am)

    Thank you for the informative comparison between traditional marketing and mlm marketing.

  62. Jan Weger (December 29th, 2007 at 9:21 am)

    I love this explanation of MLM. Especially the diagram “How is an MLM company different from a tradtional company?” MLM companies pay ordinary people like you and me to promote their products instead of paying celebrities $50 million to advertize their products.
    Thank you Tim for your untiring belief that with proper training the abundance of success in MLM is avialable to anyone willing to learn the skills. I appreciate you.

  63. Gwenael (December 29th, 2007 at 9:46 am)

    Thanks a lot for these useful, short and clear explanations.
    I will recommand this page to my french collegues and prospects.
    Next step could be a translation …

  64. Albert Watkins (December 29th, 2007 at 10:48 am)

    Great information for the industry.Thank, Tim for sharing your wisdom with world it truly a blessing.

  65. Steven Muzy (December 29th, 2007 at 12:17 pm)

    How nice it is to find a way to explain in utter simplicity how MLM compares to other forms of business. I’ve been talking too much trying hard to explain it and hardly succeeding. Thanks Tim.

  66. Steven Muzy (December 29th, 2007 at 12:21 pm)

    It is so nice to find such a simple comparison of MLM to other forms of business. I’ve been talking too much trying to hard to explain it and hardly succeeding. Thanks for the new view.

  67. Chris Medley (Ontario) (December 29th, 2007 at 6:38 pm)

    Bravo Tim! A picture perfect explanation that everyone can understand! Thank you for all that you do for this great industry. Your passion is inspiring and contagious.

  68. Lloyd Dobson (December 30th, 2007 at 4:52 am)

    Tim…..I came out of the corporate world and prior to leaving did my due diligence. How nieve I was. My perception was that all MLMs were pyramids and all that I knew I had friends who lost. I did not realize that they to were walking around blind folded. The business I came out of was very much a multi-level width. My employees were the ones loosing. I now am helping others become time free and financially free. Keep up the GREAT WORK!!

  69. Lloyd Dobson (December 30th, 2007 at 5:00 am)

    Tim….Fantastic. Success is a very perdictable just like failure. The tools you provide are certainly designed to help one become successful. The illustrations simplyfy the process of sharing the fundamental process of sharing one’s marketing plan. If we will seek out and go to work on those basic half dozen things that will make a dramatic difference in how things work out. We will succeed! KEEP UP THE GREAT WORK!

  70. Lloyd Dobson (December 30th, 2007 at 6:26 am)

    THANKS, Tim! I came from executive management in the corporate world the middle of July of this year. I have always enjoyed mentoring people in the industry I was in and watch them grow; however, your analogy of this industry being “organic” is excellent and so true. In this industry you have the opportunity to not only change your lifestyle also those who have an open mind and understanding of the opportunity for them also.

    THANKS again for your wisdom, insight and information!


  71. Edith Soberano (December 30th, 2007 at 6:28 am)

    Thank you Tim for your dedication to our industry. I agree. We should join hands to get the respect which our industry so richly deserve. Thank you for your great leadership.

  72. Edith Soberano (December 30th, 2007 at 6:29 am)

    Thank you Tim for your dedication to our industry. I agree. We should join hands to get the respect which our industry so richly deserve. Thank you for your great leadership.

    I appreciate you


  73. Janice, NM (December 30th, 2007 at 9:57 am)

    It is so clear to me. This will help others understand it also. Thanks for your work.

  74. MIchael Dubenko (December 30th, 2007 at 11:26 am)

    A Ponzi scheme by another name is a Ponzi scheme. What a tiresome nonsense this MLM is! Let’s see if you publish THIS comment

  75. DR. BOB P. UTAH (December 30th, 2007 at 11:29 am)

    I am making this required reading for everyone in my downline & I have sent it to everyone in our group. I will definitely be sending fresh “recruits” to read this as well. Tim’s success and willingness to share is exemplary. We all owe him a great debt of gratitude.

  76. Lisa Schuyler (December 30th, 2007 at 12:27 pm)

    What a clear, reasonable, fair and logical explanation of this powerful and dynamic industry. Bravo!

  77. Eddie Power (December 30th, 2007 at 1:01 pm)

    Thanks for the terrific article Tim. A lot of people, including some in the industry, don’t understand that the business model of MLM is a simple one. Hard work and commitment are still needed to be successful as nothing in life is free. Great to see that you also allow those who don’t understand(see Ponzi scheme above) a forum to express their opinion as well. Great article.

  78. Dr Barry H (December 30th, 2007 at 1:48 pm)

    Great description! Very helpful.

  79. Kon Hofstetter, Sydney (December 30th, 2007 at 1:54 pm)

    Not only informative but concise and simple to understand. The illustrations help to make it even clearer and more memorable.

  80. Donnie D. (December 30th, 2007 at 2:24 pm)

    Tim, thanks for the easy to understand and explain by a simple drawing. Great article!!

  81. Joseph Quinn (December 30th, 2007 at 3:31 pm)

    Thanks for an interest explaination.

  82. Doyce Hughes (December 30th, 2007 at 4:13 pm)

    Great job Tim.
    I especially liked the diagram showing the difference between a traditional company and a MLM comapny.

  83. Sue AB (December 30th, 2007 at 6:18 pm)

    Talk about clean and pure….you certainly nailed it with this article. Thank you

  84. mary (December 31st, 2007 at 3:22 am)

    learned a lot. Thanks

  85. Retha from South Africa (December 31st, 2007 at 4:48 am)

    Tim, thank you very much for this excellent explanation of what MLM is. Also thank you for letting us use this brilliant tool for free.

  86. Tilly Davies (January 1st, 2008 at 3:33 am)

    Thanks Tim, this is the most clear explanation I have ever come across. I will use this “free” tool to explain MLM in future, it is just so clear and simple!

  87. Kelly S. (January 1st, 2008 at 5:12 am)

    You wouldn’t buy a franchise without evaluating it: why would you start an MLM business without evaluating it. This is great, basic information for those inclined to create their own business of any kind.

  88. Dee (Aotearoa/NZ) (January 1st, 2008 at 11:23 am)

    Though I never would have owned up to it, I’ve always been an MLMer… I naturally love to share things that I discover with others. I now have the knowledge and belief that MLM can be the most ethical way of doing business when done well, and your site helps to lift the bar. Thanks.

  89. Tony Reese (January 1st, 2008 at 1:49 pm)

    Awesome article. I love how you described MLM is organic. I also loved the diagrams comparing MLM with traditional companies. I learned a lot. Thanks for letting us use this website for free!

  90. Sandy Koshari (January 1st, 2008 at 3:23 pm)

    Thanks for simplifying the network marketing industry and all industries where product is moved. Great drawings! Easy to understand! Thanks for doing this for us!

  91. Rosemary Leach (January 1st, 2008 at 6:35 pm)

    Thank you Tim for such a practical demonstration of MLM marekting. Loved the diagrams they just explain both Traditional and MLM marketing so easily. Thank you.

  92. Gavin Chapman (January 2nd, 2008 at 1:44 am)

    Tim, simply – First Class! As with so much else you have produced!

  93. Larry Wood, Ind. (January 2nd, 2008 at 7:54 am)

    Love the explanation and diagram. This turns any discussion of mlm badgering into a 1 minute picture anyone can draw on a bar napkin if they want. Simple, precise, & accurate. NEXT?

  94. Nikki Heyworth (January 2nd, 2008 at 9:35 am)

    A picture paints a thousand words..thanks Tim, concise, clear and great for those of us who prefer the visual approach!

  95. Valencia Burton (January 2nd, 2008 at 11:59 am)

    Thank you for making it so cleare! I love this site!

  96. Brian Clough (NZ) (January 3rd, 2008 at 8:51 am)

    Great article Tim. As a former business coach I used to ask all my traditional small business clients ‘How do you currently get most of your business?’ Their answer in almost 100% of the cases? ‘Word of mouth’. I don’t know any business owner that would not kill to have an army of customers out there systematically promoting and endorsing their business for free every day. I absolutely agree that one thing we all need to do more of is relate NM to business models that people are already familiar with. Or other organisational structures you’re familiar with. there are always tons of similarities and differences. For example as an ex Navy guy I can assure you that the Admiral gets paid a lot more than the Able Seaman. No matter how hard he works or how many training courses the Able Seaman goes on, as long as he stays in the same position in the hierarchy (which looks a lot like a pyramid like every other organisation) he isn’t going to get paid as much.

  97. marilyn holm (January 3rd, 2008 at 10:25 am)

    Articulates the concept that appeals to me most about network marketing: Find a high quality product; share it with friends; help them succeed.

  98. Carol S. (January 4th, 2008 at 5:10 am)

    I love the straight-forward simplicity of this article. The graphs/pictures are a great splash of color to hold the reader’s interest. Very well done.

  99. Gavin Chapman (January 5th, 2008 at 1:53 am)

    I’ve always thought that MLM is simply a commission paid, self-empowered sales organisation where distributors are paid exactly what they are worth. Of course, satisfied customers who are not distributors are the platform. And, as far as I know, MLM is the only form of commercial activity where the ‘average’ person – without much financial capital and without exceptional ability – can LEVERAGE his/her efforts. That’s the magic word for me! And it’s also magic that those you introduce have the same opportunity for gain. I’d love it if all my friends and family would join – a business excuse to spend time with them… and then enjoy being part of their success and fun with MLM. And they can overtake me if they do more! (I know for sure that their ‘bosses’ etc. would never personally invest anything like the time and effort we, as worthy sponsors in FirstClassMLM, must invest to get some return from the people we introduce.)

    And it’s more – much more – than residual income with time freedom. The personal development is mega! Done in a First Class way, MLM is undoubtedly the most ethical commercial model I know.

  100. Theresa (January 7th, 2008 at 7:51 am)

    Keep it simple, stupid. Just how I like it.

  101. Theresa (January 7th, 2008 at 8:14 am)

    Nice and simple. Thank you.

  102. Suzy Hayden (January 8th, 2008 at 5:51 am)

    This is the best explanation I have ever seen about the industry. You are a master at breaking things down where the average person can understand and grasp the industry, the activities to be done, and the real path to growing into success. Keep up the great work.

  103. Janice McClanahan (January 9th, 2008 at 5:58 am)

    I love how this article compares and contrasts mlm and traditional businesses. It gives mlm the viability people are seeking!

  104. Carlos Cabrera (January 14th, 2008 at 3:48 pm)

    Wow! It’s simply the best explanation! Thank you.
    Greetings from Peru!

  105. Joan Bailey (January 16th, 2008 at 7:04 am)

    Sold! Your link is now going on my site!

  106. Steve Pickles (January 18th, 2008 at 5:25 am)

    Your link is on my site too, a very clear and easy for everyone to understand explanation. Many thanks.

  107. Attila Hevesy,Tampa Florida (January 19th, 2008 at 8:00 pm)

    I cannot see how this information wouldn’t help someone totally understand, clearly and without question the exact way in which MLM works…..Brilliant!

  108. Anne DV (January 20th, 2008 at 8:05 pm)

    This is so helpful. Thank you for the education.

  109. Rolf Hefti (January 20th, 2008 at 10:55 pm)

    An easy-to-understand explanation! Well done!

  110. Tom Doiron (January 23rd, 2008 at 5:01 am)

    Very nicely done. You have an amazing ability to observe and explain without allowing superfluous things to obstruct your vision and understanding. It is good you are an entrepreneur because no employer would be able to compensate your talents and abilities adequately.

    Thank you for all that you do to bring dignity to our profession.

  111. Nancy Combest (February 13th, 2008 at 11:33 am)

    Thanks Tim, this is the BEST explanation I’ve heard after 25 years in the business.

  112. Lindarose (February 25th, 2008 at 12:47 pm)

    This article is a keeper. Fantastic explanation of an industry that offers so much to those willing to do the work involved.

  113. Tara Fogarty - MI (March 6th, 2008 at 7:05 pm)

    This article explains what MLM is and how it works in simple terms. Just like what MLM is, it’s simple.

  114. Helen (March 19th, 2008 at 1:50 pm)

    Thank you for all the wonderful information.

  115. Nadiminti (March 22nd, 2008 at 11:12 pm)

    Wonderful enlightenment on the concept,Tim. ( Use of word “explanation” is too low for such pure and simple concept). I am delighted to be involved in such an industry where “we help people transform as they like” with pure heart and sincere support using best and proven education system. Thanks for giving a true picture of the concept

  116. Gail Wahl (March 25th, 2008 at 6:52 am)

    Thanks for making this so clear. When you look at it in the view you have presented it makes it obvious that in a MLM world MANY more people have the opportunity to make the money that only a FEW can make in a typical business structure.

  117. Lisa Willard (March 25th, 2008 at 4:21 pm)

    Thanks again for such great information. What a great industry we are a part of.

  118. semere abraha (April 3rd, 2008 at 5:39 am)

    Thanks for a very informative and constractive Ideas
    about MLM, and I am proud to be a family of this industry.

  119. Jason P Jordan (April 5th, 2008 at 9:30 pm)

    This is THE best explainantion in written form I have seen! Great job!

    Jason P. Jordan

  120. Jason P Jordan (April 5th, 2008 at 9:31 pm)

    This is THE best explainantion in written form I have seen! Great job!

    Jason P. Jordan

  121. michael knowler (April 9th, 2008 at 9:49 pm)

    nice, short sweet and simple. even i understood it. 😀

  122. Fabio Platero (April 27th, 2008 at 11:01 am)

    Excelente informação!

  123. adebanjo ademola (May 3rd, 2008 at 10:28 pm)

    Great work, hugely great work,unquantifiiable.This perhalps is the most explicit article on MLM that i have read.More power to your elbow.

  124. tairy (June 1st, 2008 at 5:55 am)

    every thing was self explanatory and straight to the point.
    a very resource full info. thanks.

  125. Karen (June 23rd, 2008 at 4:30 pm)

    Thank you so much for your dedication and the continued support you provide to all of us in MLM. You are a true inspiration and have an incredible ability to explain things so easily that anyone can understand. I especially liked your clean and pure concept. Keep doing what your doing. Your efforts are greatly appreciated.

  126. Suhaib, UAE (July 3rd, 2008 at 10:58 pm)

    This is THE best explainantion in written form I have seen, thanks for the excellent article Tim. KEEP UP THE GREAT WORK!

  127. Tracy (July 14th, 2008 at 9:47 am)

    Clear and concise

  128. MJ from Michigan (July 20th, 2008 at 9:44 am)

    This is the first easy-to-understand, practical overview of how MLM fits into our everyday life. As soon as new recruits recognize that they have always engaged in networking marketing, the idea of getting involved just makes sense to them.

  129. Selina (August 1st, 2008 at 11:39 pm)

    I love the clear graphics- they look so professional
    and classy!

  130. Alexis Nicol Ellington-Dupree (August 9th, 2008 at 8:50 pm)

    Your information is so important. New marketeers forget that everyone, whether 20, 15, 5 years or 2 months in the business started at the beginning. And most of them without this wonderful benefit you give us. I have sent your site to everyone I have ever had any contact with in marketing and traditional business. Good information helps people make good decisions. Thank you. P.S. It looked like you had a bit of a slice.

  131. Randy Hendrickson (August 28th, 2008 at 3:02 pm)

    Thank you for the time it must take to explain this subject in terms where just about anyone could understand. I know it will help me in all I do.

  132. Donna (September 3rd, 2008 at 12:54 pm)

    Awesome explanation! Thanks for taking the time to put this up.

  133. Bounama (September 21st, 2008 at 2:04 pm)

    Well done Tim!
    This is the way we use to see from you: stripping off things down to the basics.
    It can’t be better explained. The industry owes you a lot.
    Thinks endlessly

  134. Jana Cotton (November 1st, 2008 at 9:00 am)

    Excellent Tim! Thank you for explaining our industry so well!

  135. Darren Utke Aka The Real Deal (November 8th, 2008 at 8:12 pm)

    Tim!!! You are Truly an Amazing Dude! I love your Style of Teaching. I would have to say that those three videos are some of the best I have ever watched and very Informative. Especially for the Naysayers. I have been around business in General for many years.

    Becoming an Entrepreneur was one of the most Gratifying things I have ever done… Knowing that I stuck with it and Learned from people just like you. The Right ones. The people that took the time to Find out what it really takes to Be successful. As simple as it really is, it can be very confusing. When the Truth is…

    First you much Believe you can be successful, then you Must Perform to Achieve Success…

    Here is a Great Quote from Henry Ford “Whether you Believe you Can do Something or Not, you are Right!” Absolutely 100% Correct. That is the First part…

    Then you Must Produce… By Gaining the Right Knowledge and Training, so you can Learn new Skills Enabling you To Achieve Success! By Performing Better than the other 95%

    Thanks Again, I am subscribing to your Videos and Look forward to hearing more….

    Totally Out of The Park Man!!!

    To Your Continued Success,

    “You Deserve The Best!”

    Have a AWSOME Day! 🙂

    Darren Utke Aka “The Real Deal”

  136. A Sagar (December 6th, 2008 at 5:57 am)

    This is something aawsome Tim. I’m talking about the comments you’ve got here. I am subscribing for your videos. Hope to have something more appreciable.

    Keep Up The Good Job.
    – A Sagar (India)

  137. Johnny Marques (January 10th, 2009 at 5:45 pm)

    Hi! Tim, you are the best!! All this information is awsome , your explanation about what is MLM and how we can be successful doing this is helpful for anyone that intend to do by the right way. I’m subscribing for your videos.
    Johnny from Brazil

  138. Teddy Letsou (January 15th, 2009 at 10:07 pm)

    Thanks for the terrific article. A lot of people, including some in the industry, don’t understand that the business model of MLM is a simple one. Hard work and commitment are still needed to be successful as nothing in life is free. Great to see that you also allow those who don’t understands) a forum to express their opinion as well. Great article.

  139. Ken Kirk (January 17th, 2009 at 2:05 pm)

    Best site I have been to. I have sent this link to my NAYsayers and those in my downline.
    Love it, Thanks

  140. Terry Shelton (January 18th, 2009 at 4:58 pm)

    Thank you for the great explanation. This article will definitely help me explain the network marketing industry. The integrity and value you provide on this site is second to none.

  141. Darren Utke Aka "The Real Deal" Mentor (February 14th, 2009 at 5:15 am)

    Hey Tim, Just stopped by for a minute and wanted to add a new post about how your products have assisted me with achieving much better results with my MLM Business…

    Until I stumbled on your site and actually used your products I was lost about how MLM really worked… And Now I am more confident then ever about how it all works…

    You See, I have been in the Direct Sales industry for Years With some Absolutely Satisfying Success, But MLM? I was just Uneducated at how Simple yet Powerful MLM’s Compensation or should I say The Brilliant Compensation Plan MLM Really Provides… And the Products are Second to None… I mean think about it…

    Most MLM Products consist of some type of Health product or weght loss product and those are Products that everyone Needs… Not some other useless… Well you get my Point!

    To Everyones Continued Success!

    Darren Utke Aka “The Real Deal” Mentor

  142. Aklile Nigatu (March 20th, 2009 at 11:18 pm)

    I am learning a lot about MLM through your nice gifts and experiences shared by e-mail. I always feel that I am bringing dramatic progress in my success journey through MLM. I have also come to the conclusion that the reason why you became the most successful person in your Network Marketing company is that you are very generous, keen, enthusiastic and honest to share all what you have to others who wish successful in their life. In short, you seem that you are always strive for the success of others that I always wish to be.
    Let God Bless & Give you more than you wish to have in life, Amen!

    Aklile Nigatu,
    Addis Ababa, Ethiopia

  143. Kim C (April 26th, 2009 at 1:38 am)

    Great article. Simple straightforward and to the point. Makes me feel even better about getting into my new MLM business. Was recommended by Laurence Billing. Thanks for caring.

  144. Hirman (June 10th, 2009 at 2:24 pm)

    Tim, your explaination is very clear…for people that don’t understand will immediately understand it. It’s will clear out things that unclear to them.
    Great Job Tim…

  145. Jho-Ann (July 7th, 2009 at 9:16 pm)

    Very relevant and eye -opener information.
    God bless you more Tim Sales…

  146. philip (July 31st, 2009 at 8:32 am)

    is this the distribution system/channel of all MLM companies. Reply anyone who knows.. ASAP..:D

  147. Dima (October 11th, 2009 at 8:33 am)

    Very helpful and effective explanation. Thanks :)!

  148. Dima (October 11th, 2009 at 8:36 am)

    A very helpful article, thus effective for opening others eyes.Thank you a lot:)!

  149. Manjunatha.S.K. (October 15th, 2009 at 10:54 pm)

    Superb….. information about MLM…

    Let God Bless & Give you more than you wish to have in life
    Happy Diwali…

  150. Michael (January 3rd, 2010 at 8:42 pm)

    I had no knowledge of what MLM stands for. The diagram and the whole explanation just made it vivid clear to me. Thanks, organic all the way.

  151. Ashish (March 14th, 2010 at 7:26 pm)

    Thanks Tim for having wonderful site.

  152. Himanshu (August 14th, 2010 at 11:01 am)

    Thanks Tim ! You knowledge is making lot of difference in my life. I am the next Millionaire from India. Once again Thanks for giving a different shape to my Network Marketing Business and Educating people on this Ethical Business.

  153. julee (November 21st, 2010 at 6:00 am)

    You did an excellent job here of explaining MLM along with some great diagrams. I wish more people would take the time to create great informative content like yours!

  154. Adam Nickis (November 30th, 2010 at 12:02 pm)

    Thanks Tim for sharing what is mlm!

  155. Peter Mwaura Mutiti (February 8th, 2011 at 5:59 am)

    This article is clear and sheds alot of light as to what is multi-level marketing which has been misrepresented by people who are new in this industry which has produced more millionaires than any other industry known in history.

  156. Mike (April 18th, 2011 at 10:39 am)

    Being a multi-level marketer is my dream job. I’ve studied for well over a year now, and just need to put the theory into practice.

    The concept is amazing for both affiliates and owners. An affiliate would get to make large checks off someone elses products. And the owner would make money due to the affiliates efforts.

  157. Raqib SEU 14th (B)49 (June 22nd, 2011 at 11:04 am)

    wait and see the beauty of MLM.

  158. Mike (August 27th, 2011 at 8:38 pm)

    This is a very good marketing tool for you. Many MLM’s are nothing more than a glorified pyramid scheme with the difference being that a product is substituted for cash. The article is inherently flawed in that it pitches a glorified picture of MLM’s instead of the fact that the vast majority of people lose money in this model or the fatal flaws of the model.

  159. John1040 (November 2nd, 2011 at 1:19 am)

    Very nice site!

  160. Naveen Tripathi (May 16th, 2012 at 11:53 pm)

    OMG…I went through so many sites to find information on MLM Companies and now i finally got the best one. You have very well explained the MLM work and functionality. The pictorial representation of information is really helpful in understanding the work flow in MLM.
    thanks a lot for sharing it. I have bookmarked this site.

  161. Randy P (May 21st, 2012 at 9:14 am)

    This is a very good source to understand network marketing. I highly recommend this site to everyone in mlm.

  162. Dallas P (July 15th, 2012 at 11:20 am)

    Tim Sales, you are definitely one of my top MLM training gurus. You, along side a half a dozen others, are helping to change the face of MLMers and the industry, one distributor at a time. Thank you soooo much!! xoxoxox

  163. Shyam Prasad Khatioda (August 17th, 2012 at 6:56 am)

    Thank u very much tim, being a nepalese it is very hard to enter in mlm world-i used to think. But your articals have removed the stone close to my eyes which always hindered to see the successful and beautiful life in mlm. Again lots of thanks to you Tim Sales.

  164. Manoj Mudhoo (February 19th, 2013 at 2:15 am)

    Very easy to understand explanation. Thank you Tim for your commitment to share.

  165. Sonu M (March 20th, 2014 at 5:35 am)

    I understand network marketing. I highly recommend this site to other person who is in mlm.

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