MLM = multi level marketing. A form of selling products through a network of piers and hierarchy. You have two main processes that can be followed to make money. 1. Recruit others to sell the products/service. 2. Sell the products/service yourself. Most people do both, but most people are not good at both. You’ll typically buy the products/service at a wholesale price and then sell the same products at retail to make a profit. Some MLM companies limit your advertising methods, demand a logo or disclaimer in advertising, and other rules that you have to follow. Like Agel, vitamin products: You buy the vitamins from Agel at a lower cost than what you think you can resell them for.
The success factors of MLM business follows the same as for any business you start. You need to find the best business for your knowledge, talents, and interests. If your business can take advantage of MLM products than you can blend in the products and make some money. The failure of businesses that enter an MLM model is not recognizing what the scope of the business truly is. For instance if you are going into business with the idea of making money with Agel vitamin products, you aren’t planning properly. You would have to design your business as a sales professional. Do you know sales techniques beyond pushing products on your family and friends? Can you close a sale, over come objections, negotiate, cold call, prospect, and design a marketing and advertising plan? Those are the core competencies of a sales business. If you want to sell vitamin products then you need to become an expert on vitamins, nutrition, lifestyle fitness, learn the competition, fads, trends and industry leaders. To succeed in business you need to either understand business or hire a business manager. To succeed in vitamin reselling you either need to be a vitamin sales expert or hire someone who is. I hope this helps you to better understand MLM and better evaluate your business plans.