So many people ask same question: Is Multi Level Marketing a REAL Business? Is it truly a business that can produce a living and income? Is it a REAL distribution business? It is a business that operates for customer's satisfaction, and always looks to gain new customers?
Here is answer: YES.
How and why does it qualify as a business? Every business has certain traits and functions that are needed to do business and stay in business. We have developed what we call "7 Business Factors Test", and you have to ask these questions to see if it qualifies as a business. All businesses, no matter whether it is a traditional business or a non-traditional business, (such as MLM), answer these questions in affirmative.
What are "7 Business Factors Test" Questions?
1) Does MLM Business distribute goods and services of some type?
In MLM, there are goods and services that are distributed through personal distribution methods, and they are distributed directly to customer, with no middle man. These goods and services can be manufactured by MLM company, but usually are not. The goods and services many times are manufactured by an outside source, and then shipped by MLM Business to customer or distributor. Then distributor can take goods, and re-sell them to their customers as well.
2) Does MLM Business have an official Office, headquarters, or structure that business is operated out of, and with an address of some type?
All MLM businesses should have some kind of office or headquarters that goods are shipped from, or at least in charge of shipments getting to customer. This does not have to be a fancy office, but one that can get all tasks needed to run business done in a timely fashion. They should have a visible address on all communication.
The distributor's business is usually operated out of home, and that counts as a structure that home business is housed.
3) Is there an accounting structure that is set up to run business effectively and legally?
All MLM businesses should have an accounting function and personnel set up to handle all business transactions. They not only keep books for MLM Business itself, but also MLM distributor as well. The MLM Business from home should have some form of an accounting system, for tax purposes, and for profit and loss statements. Accounting also helps keep Company and distributor aware of health of business and how it is doing, or not doing.
4) Does MLM Business have easy communication to get a hold of someone if needed?
Communication is lifeblood of any business, and MLM is no exception. MLM Businesses usually not only have an order line, and a distributor line, but a general public telephone number that public can get in touch with them as well. Usually at MLM Business Office, there is someone to answer phone as well.