Multi level marketing companies are usually retail based. Their retailers are people like you or I who become members from the introduction of the business plan from a friend or aquaintance. Distribution of the product and rewards are handled up and down a line that resembles a pyramid in structure, hence the term "pyramid selling" often gets incorrectly tagged to these businesses (pyramid selling schemes are another type of structure which is illegal in most countries).

The person who introduces you to the MLM business takes a percentage cut from your sales while their introducing member takes a cut from the combined sales of yours and theirs. It's quite a good system allowing any member to out-earn those above.

So why do network marketing companies receive so much flak? Well it's not usually from the products, distribution or business genius but predominantly from the members and their selling techniques. It all comes down to whether people get into the business or not which can make or break it. Therefore, heavy cajoling tactics can sometimes leave friends as enemies and this is why many leave the business before making their millions - the cost of losing friends can sometimes be too high.

It is possible to make the millions though and depending on which MLM vehicle you choose will determine the time and ease to get there. A hint for beginners though - these are not get rich quick schemes and like any business take a lot of hard work and sacrifice to achieve your dream income.