Among the popular misconceptions about multilevel marketing one is that it is illegitimate and equivalent to some scam. On the other hand few can resist the attraction of business with minimal investments and with support system. The confusion is compounded by the multiple terms used to describe mlm. 

MLM is also variously known as the consumer direct marketing and also as the seller assisted marketing and network marketing. But basically they are not the same.  

  • Multi level marketing is a process where the payout comes up at multiple levels. The commission is divided among the various levels. Far from being illegal, the concept fits in the legal regulations laid down by most of the states and the Federal Government.
  • Network marketing is a process where the distributor network has the responsibility of building up the business. Payout will be occurring at multiple levels like the MLM.
  • Businesses that use a network of suppliers of various products so that the customer is able to select his choice do not come within the definition of MLM or real network marketing.
  • Consumer direct marketing is somewhat confusing term as it designates the distributors as the consumers. The distributors will also buy the product for their own use.
  • Under the California State law the seller assisted marketing is a form of MLM. However, the minimum investment level is $500.

So the mlm tips for you are that genuine MLM is legal and permissible both under the State and Federal laws and is not scam.