Multi- level marketing (MLM) is a form of marketing where you develop a network of associates that market and sell a product directly to clients. Each associate is expected to not only sell, but to also go out and look for and recruit new associates and gets a percentage of each sale that the associates that he recruited makes.

It can be a viewed as a domino style form of marketing. As the manufacturing firm launches the product into the market, it first recruits, trains, develops and manages an initial team. This initial team, in turn, needs to not only sell, but also do the same i.e. recruit train and develop a new set of recruits that they will be in charge of.

Assume that you have started a manufacturing firm that employs multi level marketing. As the manufacturer and product owner then you are at level one. You then recruit someone (for instance your sister) and she becomes level two. Each time she makes a sale, not only do they make money but you will also receive a proportion of the income from the sale.

She will then proceed to recruit someone else who will now be in on level three and she will make a commission from the sales of this person. But in addition, you are also entitled to a commission from the sales of the person on level three as the person that recruited their recruiter. As your network grows and you move higher up the 'food chain', then the more money you can make as long as the people below you continue to sell. Of course, this implies that the opposite is also true-the lower down the rungs you are the less you earn.

MLM systems are known under a number of different names such as magnetic marketing and magnetic sponsoring and are sometimes confused with network marketing. But MLM is just one type of networking marketing but not all network marketing is MLM. You need to be passionate, enthusiastic and highly motivated about the products you are selling if you want to succeed in multi level marketing.

First, you need to find a product that you have faith in. Finding the correct product is probably the single most important factor when considering a long-term future in the MLM industry. The second step is to find an MLM network that sells your preferred product. As you would expect, not all MLM organizations will be the same. Perform a thorough research before you commit yourself to any one firm.

To be successful in MLM, you have to learn the skill to not only sell but also the ability to identify and recruit excellent sales persons. Remember that you will be as successful as the people you have recruited are successful in selling. Make sure that they share your passion for the product and believe in you since you are their de facto leader.

Multi level marketing is all about numbers. You need to constantly drive for more and more people if you want to move into a comfortable residual income.