Over past two years a lot has happened to MLM on Internet. The most obvious thing is that old MLM systems are not working like they are supposed to. People are getting smarter and can recognize hype for hype and owner oriented profit schemes more easily.

People are not biting on time worn scams so common on Internet these past few years. The old style of MLM, promising fast and easy money just plain doesn’t work in today’s web environment. Impossible claims for quick and easy results with a fully automated system and with no work involved, just do not cut it anymore. Why? Because systems of this type do not work for anyone except owners of MLM in question, that’s why.

Why don’t they work? Well to be successful in any MLM you must work your tail off and learn how to properly advertise and close your sales. Not only that, but you must actually recruit people to a downline and train and motivate them to duplicate your effort. Many people want to participate in MLM's but never learn basics of how to sell or close sales.

Then we come to compensation plans; most are front-loaded to benefit those high up in MLM downlines or matrices. Most compensation systems do not really pay enough to properly reward a person for building downlines. Let’s face it, under current rules being enforced by most of regulatory agencies, paying for recruiting people is considered to be building a pryamid and that is a definite no-no. By law majority of income from MLM's must result from sales of products and services and not from recruiting people into program.

That does not mean that referral fees cannot be paid but such fees should be more or less fixed at level compensating those who do recruiting for time and work involved.

Recruiting cannot be main purpose of MLM. Yes, downline clubs may charge a membership fee and pay a referral fee for new members brought into program, but main source of earned income must come from retail sales of products and services.

It seems everyone has a system to get magic results with little or no work or time requirements. I wish it were so, but it just plain does not work that way my friend.

If you do not know and understand what a good MLM should offer you, it is time you took time to find out. Let’s take a minute and talk about that and see what we can come up with.

As Karen answered some of my questions it became clear she had done a good job of targeting a niche market. She also provides a compelling reason for prospects to do business with her instead of with her competition. She was obviously effective at attracting customers because she already had over 100 of them.

In fact, she was so busy chasing down new customers she completely overlooked her existing customers as a source of additional business.

HIGHLY PROFITABLE AND EASY TO GET

Your existing customers and clients already know and trust you. It's easier for you to get more business from them than to get business from new prospects. It's also more profitable than business from new prospects because you get it without an advertising expense.

Some businesses have natural repeat sales built into their operation. For example, most MLM companies sell consumable products that periodically need replacing. And web site hosting services collect a new fee at regular intervals to keep your site up.

These replacement needs automatically generate repeat business. But how can you generate additional business from customers when it's not automatically built into your product or service?