Do you know what multi level marketing really is? There are many misconceptions about this way of selling and when a person really doesn't understand the concept, they may be missing out on a great way of earning extra income. Some also mistake multi level marketing for a pyramid scheme or scam, and this too can mean lost opportunities. There is a big difference between many of the scams you need to be cautious about and true opportunities to make money; as a matter of fact, most pyramid schemes try to disguise themselves as legitimate multi level marketing opportunities. Let's take a look at what these really are and then you can determine if these are for you.

In simple terms, multi level marketing refers to selling not just a product but also to recruiting others to sell that product and then you get a commission, not just from your own sales, but from the sales generated by those you've recruited. This is where the "multi level" of multi level marketing comes into play. Salespersons work at various levels with those at the top having the most people underneath them so they earn the most. Of course there's no limit to the number of people that can be recruited for sales so it's not as if those with few or no people underneath them are not making any money or won't make any money as time goes on. And of course sales is another part of multi level marketing so there is income potential with just that as well.

On the other hand, a pyramid scheme works by charging fees to those who want to sell and the majority of money is made from those fees, not from selling an actual product. If there is no product being sold then this is actually illegal. Some pyramid schemes work like multi level marketing by selling a product and then selling "licensing rights" or other permission to sell that product as well. Again, the majority of money is made from those fees or charges and not from sales of actual products. This is how you know something is a scheme or scam because you should never have to pay for the right to sell something! But with multi level marketing you are legitimately selling a product and as you recruit others, you make money through the sales they generate as well.

So is multi level marketing for you? Much of the answer depends upon whether or not you want to sell online or through home parties or directly. Many make their living online, selling a product and signing up new salespersons as well. The company that produces the product you sell would have all the information on how to do this. When done right, multi level marketing can be a great way to earn extra income from both your sales and the sales generated by others. Some even earn a full-time income this way, so it's definitely worth investigating!