Top MLM FAQs – Frequently Asked Questions about Network Marketing

Pavanan Ghosh

Be it any business, we look into the prospect of the business and decide whether to start the business or not. The prospect should be very clear and understanding. A proficient prospect plays a vital role in any business. Here it is the same for MLM business. You need to clear all the queries of a new member when he joins your team as a downline in this MLM business. Here is the list of top MLM FAQs for those who are planning to enter in MLM business.

Now we will briefly look into each MLM Questions and answers

MLM stands for multilevel marketing. It is a business model where the company finds an intermediary to sell their product to end consumers and the intermediaries earn the commission based on the personal sale and they also recruit new members or downlines to the business and new members, in turn, recruit another downline and it goes like a chain process. The intermediaries also earn the commission for the indirect sale happened through their recruits.  

#2. How to start a part-time MLM business?

A good number of people started part-time MLM business when they have a full-time job in their hand.  Spend one or two hours per day after your daily work to promote the business through your friends or family and it will assure you second income.

Read More on: How to start MLM Business

#3. How to make money through MLM business?

You can earn a good amount when any personal sale happens and you also earn a commission when any sale happens through your downline or team members. The commission rate depends upon the plan followed by the organization. It is always some percentage of the sale happened.  

#4. How to recruit new members in the MLM business?

In MLM business, you can recruit new members either from family or friends by explaining about the product and the business.  You can explain the benefits of the business by using the company manual, short videos etc.

#5. What type of products are used for this business?

MLM business mainly concentrates on the products which are consumable.  Consumable products involve healthcare, beauty products, nutritional products etc. These type of products will be used by the customers or distributors so they come up with new order for the product.

#6. How to promote the MLM products in network marketing?

As an MLM distributor, to promote the MLM products, you can keep in contact with your downlines, family, friends, etc. Keep regular meeting with your downlines to promote the MLM products, send e-mails to the customers in contact, create a social media group to promote the MLM produce, conduct a party or seminar to show your product demo and MLM presentation.  

Check out the steps on how to sell and promote the MLM products.

#7. Is MLM an illegal business?

There is a common misunderstanding that pyramid structures are illegal. It is not the structure only the pyramid schemes are illegal. Almost all organizations follow pyramid structure. The top person CEO supervises middle management. Middle management, in turn, supervises the working employees. Look into the business and schemes not into the structure. MLM business is a legal business.

#8. Is this business a scam?

Since MLM business is a legal business, there is no chance for a scam to happen. Some distributors enter this business to make money within a short period of time without investing their efforts and they go out of this business and spread that this business is a scam. They also corrupt with some misleading business practices. You can make money in any business within 30 to 90 days if you sincerely invest your efforts.

#9. What is the success rate?

The success rate of any business depends upon your consistent effort and time. Similarly, it is the same MLM business.  If you really invest time and effort you can also earn 6 to 7 figure income in this business. Success depends upon the individual. Success or failure depends upon the goal of the members. Some people join only for the discount. Some people see it as a second income and will try to promote the product and earn the good commissions.

#10. Can I build multiple businesses concurrently?

Some companies allow you to do multiple businesses at the same time. Some companies will have a distributor agreement which restricts you to do so. It purely depends on the company. It is always better to focus your business with a single MLM company.

#11. How huge the MLM industry?

It is really a very huge company. Approximately more than 50 million people are involved in this MLM business. More than 100 billion of sales happen per year.

#12.  Which is the best MLM company to join?

It depends. You need to look into a company which offers product and services. The prices of the product should not be inflated and it should be fair enough. There are many good companies in the MLM industry.

Have a quick glance at: Top 100 MLM Companies in the world

#13.  Should I concentrate on selling or recruiting?

Selling and recruiting both have their own benefits. To earn money in the beginning you can sell the products directly to the end customers. Later on, you can build your team by recruiting new members or distributor and earn a commission based on the sale happens through your team.

#14. How long MLM has been there in the industry?

Hope you all know Amway, It was founded in 1959 and at the same time Nutrilite started just 10 years before. One more MLM company Watkins, it’s been more than 100 years.  We can roughly say that around 60 to 100 years MLM has been there in the industry .

#15. Is it better than a traditional business?

Both MLM and traditional businesses have their own risks but still, In MLM it is very easy to start with less investment, no need for inventory or any building or any employees.

Know more about : Multi Level marketing vs Traditional Marketing

#16. How to be successful in MLM business?

To be successful in MLM business, the first step is to choose any good MLM company which follows a good plan and stick to that company for the long term. Your goals should be very clear and need to be very committed to your business. Don’t switch your MLM company frequently. Take the help of your mentors to understand the product.  Schedule your time and invest your effort to view the good result of this business.

Read more on: How to succeed in Network Marketing Business

#17. How do I handle Network Marketing Objections?

Objections are quite common in any business. To face the objections from customer please follow below tips.

  • Always listen fully to the customers.
  • Note where you are lagging behind.
  • Interact more related to the benefits of the business and the product.
  • Share the success stories
  • Accept and solve their objections

Get the best Tips to Overcome Network Marketing Objections

#18. What are the MLM Consulting Ideas?

Following are some of the important MLM consulting ideas

  • Train people about how to build new MLM website.
  • Help them to allure more traffic.
  • Provide knowledge about advertising.
  • Focus on content writing services.

To know more look into the Top 10 MLM Consulting Ideas.

#19. What is MLM Software?

MLM software is the software or multi level marketing tool which is used to manage all the tasks related to MLM business operations like managing the MLM network, payouts, commissions, MLM reports, etc. The efficient MLM software will make the MLM business more effective.

Read more to know the complete guide of what is MLM software.

#20. How to choose the Best MLM Software?

Here are some tips to be followed before choosing the best MLM software

  • Identify your requirements and concerns in the business.
  • Fix your budget and look into the compensation plan.
  • Customization features, security, and performance of the software.
  • Company reputation and its support post installation.
  • Try a free demo of the software.

Read more on : How to choose the best MLM Software?

#21. How to calculate Profit and loss?

In MLM business you can calculate the profit and loss via an MLM calculator integrated with MLM software.

Please enter some basic details like Joining Amount, Product Amount, Capping / Ceiling, Number of Levels, Admin Charges, Tax Deduction, etc, the calculator gives an overview about how you would benefit before you join the network.

Calculate Your MLM Commission using Free MLM Calculator

#22. How to create best MLM Presentation?

Please follow the points to create good MLM presentation.

  • Remember the main goal of your business.
  • Interact more with the audience.
  • Consider your audience input to include in your presentation.
  • Keep it short and clear.
  • Use the technology for the presentation.
  • Make use of charts and graph to explain success rate
  • Share the success story in short.
  • Face the objections and clarify it.

This will definitely help you to create best MLM presentation.

#23. Who are the most successful people in Network Marketing?

Many people succeed in the network marketing business by putting efforts and dedication. They had a great a success which can motivate to the new joiners.

Get to know more about Top 10 Inspiring MLM Success Stories

#24. How should I motivate the downlines in the MLM business?

You can motivate the downlines in the following ways:

  • Always lead them as an example. Show how you work instead of just telling them. Show your methods and strategies to them. 
  • Keep in contact with them to have a regular MLM meeting.
  • Provide necessary training and the materials.
  • Give recognition, appraisal to have a positive effect on their further work.  
  • Concentrate on their personal development.

You can also use the below famous MLM motivational quotes with your MLM presentation to inspire them :

  • “The richest people in the world build networks; everyone else is trained to look for work.”
  • “It’s more important to grow your income than to cut your expenses. It’s more important to grow your spirit that cut your dreams.”

Read the Top MLM motivational quotes to motivate your team.

#25.  What is the future scope and growth of network marketing?

The future scope and growth of network marketing is really promising. The history and the current statistics reports assure the future success of the MLM business in India.

It impacted the following economic and social factors:

  1. Passive income opportunities
  2. Established women empowerment
  3. Enhanced employment generation
  4. Contribution to government sector

To know more, look into the future growth of network marketing in India by 2020

#26. How do I find business opportunities in MLM during pandemic?

All business sectors are facing an economic crisis and millions of people are losing their current jobs. Network Marketing paves them the opportunity to earn during these pandemic days. MLM Business opportunity forever offers job security during this pandemic or any uncertainty

#27. Is MLM a pyramid scheme?

MLM is a legit business model where members earn money through commissions from selling products, recruiting new members (downline), and the commissions from the sales of their downline. Pyramid schemes are illegal, fraudulent schemes. Here money can be made only by recruiting new members and charging a hefty initial fee from them. Pyramid schemes are often disguised as MLM plans. The major difference between MLM and a pyramid scheme is that there are no realistic products in a pyramid scheme.

#28. Which are the popular MLM plans?

AThere are many MLM plans active today. It is not easy to pick one as the best among them. It depends mostly on the product or service, cost, marketing, and so on. Some of the popular plans available today are binary MLM plan, unilevel MLM plan, matrix MLM plan, board plan, party MLM plan, gift plan, hybrid MLM plan, Australian binary plan, generation plan, etc…

#29. What is downline in MLM?

Downlines are the members that another member has enlisted to join the MLM network. The senior member earns commissions from their sales and the sales of their downline. The senior member is called the upline of the new member. It is considered as the duty of upline to properly train their downlines.

#30. Why is MLM so popular?

MLM is so hugely popular because of the benefits it offers. There is only a minimal amount of risk and initial costs involved, there is a chance to earn passive income, huge income potential, low operating costs, etc… are some of the factors that make MLM highly attractive for people. When done properly, MLM could be the way to financial freedom.

Read more on How to find MLM Business Opportunities When Faced With Job loss?

#31. What is a binary MLM plan?

The binary MLM plan is one of the most popular MLM plans today. It is suited for networks of all sizes. Binary MLM software is also used widely by companies everywhere. All members are required to enlist and sponsor two members in this plan. There are multiple ways to make income in this plan, and that is one of the reasons why it is so popular. Features such as a binary commission calculator in binary MLM software will make the plan smoother for organizations and members.

#32. What is a Unilevel MLM plan?

As the name indicates, there is only one level in the unilevel MLM plan. The plan offers unlimited width. Unilevel MLM software is commonly used by companies deploying this plan. Many bonuses such as sponsor bonus, fast start bonus, level commission, rank advancement bonus, and leadership bonus can be earned in a unilevel MLM plan. Features like a unilevel compensation calculator in unilevel MLM software streamline the functioning of the plan.

#33. Is it necessary to use MLM software?

Managing an MLM network can be a very complicated process. MLM software can ease the complexities of managing an MLM network. With features like backup systems, replicating websites, automatic payments, e-wallet, mobile app, e-commerce integration, etc… MLM software has become an integral part of any MLM business. Binary MLM software and Unilevel MLM software are very popular.


Finally, we have seen all the important MLM FAQs (Frequently asked questions )about Network Marketing. Hope these answers will help you to start the MLM business successfully without any confusions or doubts regarding the MLM business.

If you think we have missed any network marketing questions and answers related to this, let us know your opinion in the comment section.


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