With a world recession in full swing it seems as if I am being inundated with offers to join the "newest and greatest ground floor opportunity ever!" When times get tough people start looking around at different opportunities. Nothing wrong with that but is multi level marketing the answer?

In this article I hope to answer that question.

There are many very successful multi level marketing companies. Having been involved with MLM companies I have a fair idea as to how they work.

I was recently involved with an MLM company - let's call it company M.

I believe company M's system is fairly typical of most MLM structures.

The way multi level marketing companies operate is that they first and foremost have a product, or a range of products that are supposed to have a unique point of difference. In company M's case the majority of their products contain an extract from the specific tree, native to Australia that is sustainable. Company M's products are said to be 100% chemical free.

Customers sign on and commit to purchase a certain number of points (product) each month and are in turn encouraged to recruit new customers. A new customer pays a small sign on fee (some MLM companies have much bigger fees) and must commit to buying a certain number of product points each month.

Commission is paid on purchases made by the clients enrolled in your down line.

Once 8 new customers have been personally enrolled you move up in status and your purchasing commitment is increased.

The focus also changes at this new, higher level with the emphasis shifting to growing the business. Now you must help each of your recruits and encourage them to attend meetings and also recruit eight new customers.

The higher you get the greater the commitment to company M and in order to qualify for the substantial bonuses monthly targets have to be met on an ongoing basis.

A magnificent system that ensures the senior members are kept actively involved in promoting the company if they want to keep reaping the benefits of the business.

And this is where a lot of people have a problem with MLM companies:

• You have to keep recruiting - not always appreciated by friends and family!
• You have to buy more and more product (sometimes impossible to consume) each and every month.
• You have to attend all meetings (or at least a certain number) to meet monthly goals.
• Encourage and cajole people into making lists and following up with them to get them into the fold.
• Continue with this pattern forever and a day.

There is a lot of money to be made on legitimate multi level marketing but it is not as easy as you may be led to believe.

In many cases those making the big money have forgotten the reason that they initially joined the company - because of a quality product. Many only join for the business opportunity, and not the quality of the product, hence promoting something they do not necessarily believe in.

The success of your business very much depends on your effort and the quality of the people you recruit.

Is multi level marketing the answer? Only if you join a reputable MLM company and are prepared to work hard and accept that you are not going to make a lot of money overnight. Like any business you have to work at it. The harder you work the more you will be rewarded.