Are you a recruiter? Or are you a sponsor? There is a big difference. A recruiter is effective at “signing up” people, and then moving on to “sign up” others. The recruiter seems to be in a frantic search to find superstars among crowd, and his way to “find” them is to “sign them up” and then watch and wait. The recruiter believes in “love ‘em and leave ‘em. He expects superstars to eventually rise to top, and others to eventually quit. The sponsor has a different attitude. He believes that any person worth sponsoring is worth developing. The sponsor believes in “marrying” people he sponsors. The recruiter believes in “one-night-stand”. Being a sponsor is an ongoing, continuing activity. It is this ongoing activity that creates loyalty to sponsor, and gives sponsor serious credibility. The recruiter is a traveling salesman; once he has sold you, he is gone. The sponsor is a helper/teacher who wants you to have training and tools you need to be successful, and encouragement to keep plugging.

There is also a transferable concept here. Your sponsor wants you to be a sponsor. A sponsor develops other sponsors by deliberate, careful help and encouragement. A recruiter expects a born superstar.

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?

Answer: Yes.

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?

Answer: Yes.

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?

Answer: Yes.

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?

Answer: Yes.