If you are looking into starting a home based business, on either a full or part-time basis, and are good at working with people, but have little business knowledge and minimal capital, then Multilevel marketing may be for you. Before you jump into a MLM company, you should consider the positives and the negatives of an MLM company.

This article will show you the positives to look for in an MLM company and some of the downsides of MLM companies.

An MLM company provides a product or service to the consumer through a network of distributors. The distributors make their money through a percentage of the products they sell. They also make a percentage of revenues from the customers of the distributors that they recruit and a percentage of the distributors that their distributors they recruit. This is why it is called multi level marketing.

Reputable MLM companies also provide a low start-up cost, all the training you need, advertising in one form or another, and supply you with a product line-up or service to sell.

The United States Federal Trade Commission, however, cautions anyone from joining a MLM company that pays you for each distributor you recruit, as opposed to only paying a commission on the total sales they generate. This is called