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What is Multi-Level Marketing?

So you’ve taken the first giant leap and handed over your precious email address.

You’re probably most eager to dive in and get busy…

But perhaps you’re new to this game and need a few tips before you are sucked up within an over-abundance of information.

I’ve written this post to help explain MLM and how you can avoid some of the pitfalls, and quash some of the myths about MLM.


What is Multi-level Marketing?

Multi-level marketing, or MLM, is basically a form of the direct sales home business model.

Independent representatives sell products or services from one company to their customers.

The multi-level part is when you recruit people to the organization under you.

You then help them get set up, and you’ll earn a commission on their sales in return.

I don’t see it much different from a standard company structure where the more experienced employees train the new people, lower down the company structure.

The thing I love about MLM is you can earn income on your sales as well as on sales from people you recruited.

One month you have a bit more free time, so you help recruit and train up a few people…

Then the next month, you have a bit more on your plate, so you don’t have time to recruit anyone…

There’s no one with a dirty big boot on your neck, pressuring you to achieve any targets.

I remember one of the first ‘real’ jobs I had when I was young, for Kirby Vacuum Cleaners.

Our boss was a particularly annoying character, and not just his BO and bad breath…

..he was a constant thorn in our sides, and wouldn’t think twice about calling us on a weekend, or late in the evening.

Thankfully, there’s none of that with MLM…


Just so you know the basic terms you’ll probably come across sooner rather than later…

The MLM Plan

Most MLM companies use ‘the plan’ to mean the company’s marketing and compensation plans.

MLM Sponsors

Your sponsor is the dude who brought you into the company.

The MLM Recruits

Your recruits are all the people you brought into your Downline (see below).

The Multi-Level Downline

The downline in your organisation involves all the recruits below you. This number will include members you’ve brought in, and sometimes, come from your sponsor.

What is the Upline?

Your upline is all the people above you. If your team is strong the people sitting in the 2 or 3 levels above you, will go all out to help you build your team.


What is The Compensation Plan?

This is a very important aspect of your organization. This is how you get paid. So make sure you know what the Compensation Plan consists of, and check with your Sponsor about anything you’re not sure about.

One of the beautiful things about HempWorx is they have gone to the trouble to put all the information about their Compensation Plan into a compact video.

So if and when anyone in your downline asks you a question about the Compensation Plan, you can simply direct them to this video…


What is Network Marketing?

You might find Multi-level marketing referred to as network marketing as well.

Network marketing is very popular with anyone looking for a chance to make extra money in their spare-time. This is because network marketing is a very flexible business model.

You’re bound to have heard of the likes of Nutrilife, Avon and Amway. However, these companies have been around for donkey’s years, and there are now a ton of modern varieties.

Another benefit of the network marketing model is that there is usually a low upfront investment. Often, two or three hundred bucks for the product sample kit.

Be careful with companies that mostly compensates members for recruiting more into the network, than selling the company’s products.

In the CBD industry, I’d make sure the CBD products are of the highest quality before getting in too deep. And that usually means testing the CBD oil and CBD topical creams for yourself, or at least someone you know very well.

If a network marketing company gets most of its revenue from recruitment, then it could be considered an illegal pyramid scheme.

Is Multi-Level Marketing Legal?

There are as many myths and misconceptions about MLM, as there are MLM companies.

For a multi-level marketing company to be legal, it must tick these three points:

  1. Have a quality product or service
  2. Members’ income is earned from the sales of products or services
  3. The focus of the company is on sales, not just recruiting new members. 


Are Multi-level Marketing Businesses Successful?

Many people who are against the Multi-level Marketing business model claim the high failure rate as a main reason to steer clear.

However, just look at the high failure rate of any company.

I know if I started a traditional brick and mortar business like a bakery or a restaurant, or even a salon, then there would be a huge investment on rent for the premises, equipment and stock.

If you started a franchise business like a McDonalds or a KFC, you’d be handing over the Crown Jewels to get started.

However, just look at the tiny investment to get involved with a company like HempWorx. You could get hold of some samples packs for under $100 and you’ll be able to get your business underway.

I joined HempWorx on the Executive Level because I wanted to be earning maximum commissions in the shortest time possible.

To get in on the Executive Level requires an investment of only $599, plus some admin fees. But that gave me 12 of the company’s products for my investment which easily sold within a week, so I had all of my initial investment back well before the month was out.

Could you ever get your total initial investment in a traditional brick and mortar or a franchise business model inside one month?

No chance!

I’d bet not many bricks and mortar or franchise businesses make their money back inside 3 or even 5 years.

But no one slags off those business models.

…but the Multi-level business model is often berated.

I think it’s a no-brainer these days to go for the MLM over the massive investment required for the traditional models.

At the end of the day, if you decide to join a multi-level business then your success depends solely on your ability and how much effort you put into it.


How Can I Be Successful with the Multi-Level Marketing Model?

In my experience your success in the MLM business model depends on a few basic things:

  • Do you have a strong background in basic selling concepts?

If you don’t there are plenty of ‘Sales Gurus’ who will teach you, often for a tidy sum.

Alternatively, you could use the services of a massive sales professional like Todd Falcone who will teach you for FREE. When you join HempWorx, you’ll find a ton of very high-quality killer sales training by Todd in the back office.

  • Do you like the company’s products?

I think it’s important that you like the products and want to use them on a regular basis. That way you’ll fully understand the products and all of their benefits.

Imagine you’re selling Amway products, but don’t use any yourself. How could you ever answer any questions if you don’t use and understand the products yourself?

I made this mistake when I was selling perfumes when I was a teenager. Yes, the company did have men’s after-shaves. But most of my prospects turned out to be females. And I just struggled to answer any of their product-related questions.

I also think it’s great when the product is something you use every day. That way you’re going to get a ton of repeat sales from your customers.

To be honest, when HempWorx brought out their CBD infused coffee, I didn’t think it would sell very well. But I was very wrong. Now, CBD coffee and creamers are probably the biggest sellers in my business.

  • How strong is the compensation plan?

You are in or thinking of getting into an MLM company to make money. So the compensation plan is a vital component towards your success.

In my 30+ years in network marketing, I’ve seen some shocking compensation plans.

I’ve already shared the HempWorx Compensation Plan above, but here it is again.

You should watch this video over and over again if you’re unsure about anything.

  • Are you ready to work hard?

Just like any business, you need to be prepared to work hard. Don’t believe anyone who tells you that you’ll make a million dollars with their MLM business with very little work.

If you decide to join HempWorx, it’s going to take hard work to build your business, especially if you want to quit your day job, and your MLM business to become your main income source.

If you sign up with me, I’ll, of course, help you grow your business, but I can’t do everything for you.

Your success with HempWorx is NOT guaranteed, but there are a ton of opportunities for you to make money.

Are You Ready To Start Your Own CBD Business?

If you are ready to check out HempWorx, then you should click this button below so you can take your FREE tour. You'll be given access to the back-office, so you can look around, learn more about the company, and test the company before you part with any of your hard-earned money.


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