          
          
          
          On The Plus Side
          
          
               Why are so many major companies using MLM, which
          now accounts for tens of billions of dollars of sales
          each year?  Because they can sell products through a
          distributor network without spending millions on
          advertising and promotion to build up consumer demand.
               Therefore, an MLM company is only as strong as its
          distributor network.  To succeed, such a company needs
          many strongly motivate distributors.  Distributors, in
          turn, are attracted to MLM for the following reasons:
               * Discounts.  If you're a distributor, you can buy
          the product itself at a discount.  As long as you're
          working with products that you ordinarily use, or that
          your family members use, you benefit by buying
          wholesale.
               * Pricing.  MLM products may offer better value
          than traditional retail products because advertising
          and promotional costs are reduced.  This is attractive
          to distributors who use the products as well as to
          those who use low costs to help sell the products.
               * Flexibility.  When you work in MLM, you set your
          own hours.  If you have a regular 9 to 5 job, you can
          spend nights and weekends on MLM, increasing your
          income.  Or if you have other responsibilities --
          taking care of a young child, for example -- you can
          schedule your MLM activities to suit your convenience.
               * Taxes.  There may be tax benefits to working in
          MLM.  Essentially, you become an independent
          contractor, eligible to deduct business-related
          expenses.  A home office, for example, could translate
          into a big tax savings but you do need to meet the
          IRS's exclusivity rule: A home office must be used for
          your business only -- all of the time.
               * Low entry fee.  If you're interested in a
          business opportunity, you may have looked into
          franchising.  Virtually any franchise would require you
          to put up thousands, even tens of thousands, of
          dollars.  In a legitimate MLM venture, your up-front
          contribution usually is less than $100.
               However, although it is true that the cost of
          entering an MLM organization is much lower than the
          cost of entering a franchise business, it may not be
          realistic to expect your only cost to be one $50
          distributor's kit.  You may have to spend several
          hundred dollars or more to buy samples, sales aids,
          etc.
               * Low ongoing costs.  Most MLM businesses can be
          run out of a home office, with no need for employees,
          equipment, or inventory.  The only inventory you'll
          really need will be samples for recruiting efforts and
          for direct sales to your own customers. 
               * No territorial restrictions.  Many franchises
          limit you to a certain area.  In many MLM
          organizations, you and your downline can sell to
          anyone.
          
          
          
