The industry known as Network marketing is not new. Who started it all, can you guess which company? If you said "Amway" that's the wrong answer. You will have to look further back. Did you say "NutraLite"? Nope, you need to go back even further. It was a sea vegetable supplement company named Wachter's. It was the started in 1932, during the Great Depression of the 1930's. (NutraLite started in the 1940's).

There are many who define multi level marketing as a illegal enterprise and others who define it as a credible business. Today there are thousands of multi level companies and new ones pop up every day. Network marketing has been adopted as a "direct selling" company and many companies pride themselves as members of The Direct Sellers Association.

People more often than not will define multi level marketing based on their own personal experience. Sadly because most people lack the training to become successful have a poor definition. Here is how Wikipedia defines it:

"Multi-level marketing (MLM) is a marketing strategy in which the sales force is compensated not only for sales they personally generate, but also for the sales of others they recruit, creating a downline of distributors and a hierarchy of multiple levels of compensation."

Many define multi level marketing as the great equalizer, meaning that you don't have to have a "proven" background, education or franchise size fee's to become involved. This is certainly true when you begin to recognize many of the more famous companies that are out there. Some of the best-known companies in U.S.A, including Avon, Mary Kay Cosmetics and Tupperware, fall under the network marketing umbrella.

Network marketing programs feature a low upfront cost--usually only a few hundred dollars for the purchase of a product sample kit--and the opportunity to sell a product line directly to friend, family and other personal contacts.

Regulatory bodies like the FTC, warns people in how they define multi level marketing , especially when a network marketing network compensates participants primarily for recruiting others rather than for selling the company's products or services. A network marketing system in which most of the revenue comes from recruitment may be considered an illegal pyramid scheme.

Bottom line, do your checking. Don't simply take your friends word without doing your own checking. Define multi level marketing out of your own research and comprehension. Make sure they are established and have at least a two year history. And look for systems that can help you learn about this industry and jump start your business.