This document provides an overview of multi-level marketing (MLM) training. It defines MLM as a method of distributing products through independent distributors rather than traditional retail outlets. Distributors can immediately start their own business with little resources or capital and earn compensation from their own sales as well as sales from those they recruit. The document outlines the differences between legitimate MLM companies, which market actual products, and illegal pyramid schemes, which rely solely on recruitment. It notes MLM has been praised by entrepreneurs as an effective way for people to become financially successful.

1. MLM Training #1
Knowing the Industry
 Also known as network marketing or networking
 A method of distributing products through independent distributors rather than traditional
retail outlets.
 It enables people to immediately start their own business with very little resources or meager
capital and with the least of risk involved.
 It is a revolutionary approach of distributing products directly to the end-users by word-of-
mouth.
 Its recognized as one of the fastest growing industries in the world today.
 Distributors are compensated from:
a. Sales of Products
b. Sales of Products achieved by when they introduce other people in to the business
* What is the Difference Between a legitimate MLM and an illegal Pyramid Scheme?
Pyramid Scheme MLM Company
 There is NO real product
 Money is promised on recruiting
more people into the scheme
MLM’s Fair and Simple Rule:
 There is a marketed product
 No money is paid on
recruiting alone
 There are trainings and
courses given to distributors

2.  Do little = Earn little
 Do average = Earn average
 Do a lot = Earn big!
* Networking/MLM has been commended by different entrepreneurs like Robert Kiyosaki, Donald
Trump, Warren Buffet and even late US president Bill Clinton because of its effectiveness to bring
people from rags to riches. (see videos from youtube or from the giver of this handout)
“In 1984 20% of new millionaires came from Network Marketing. By 1994 it was 50%. It’s predicted that
by 2004 and forward, 70-80% of new millionaires will come from the booming Network Marketing
Industry.”
- IRS (U.S.) Statistics