What is an mlm company or a network marketing company? A clear definition and how it differs from traditional business, why do companies choose to go this route and how to avoid scams Link to the full presentation:https://youtu.be/5li05N_NcRA

1. WHAT IS AN MLM
COMPANY?
or What is Network Marketing?
with Freedom Mompreneur by Design
JoAnne Mbonigaba
www.freedommompreneurbydesign.com

2. WHAT IS AN MLM COMPANY?
or What is Network Marketing?
with Freedom Mompreneur by Design
JoAnne Mbonigaba
www.freedommompreneurbydesign.com
• Before we get started, let’s look at
the baseline which is Traditional
Business.
• Traditional Business is usually
defined as a business that has a
store front where consumers come
in to purchase their products or
services. Like a restaurant,
employment agency or retail store.
• It usually involves a significant
commitment of capital upfront and
the hiring employees to assist.

3. WHAT IS AN MLM COMPANY?
or What is Network Marketing?
with Freedom Mompreneur by Design
JoAnne Mbonigaba
www.freedommompreneurbydesign.com
• Now let’s tackle what is an an MLM Company and how it differs.
• An MLM Company is a multi level marketing company that traditionally does not have a
store front and instead focuses on enabling people who like and use their products/
services to go out and socially sell to those they know.
• It usually involves a little to no upfront investment and instead of hiring employees, people
recruit others to join their team and benefit from the products and the compensation plan.

4. WHAT IS AN MLM COMPANY?
or What is Network Marketing?
with Freedom Mompreneur by Design
JoAnne Mbonigaba
www.freedommompreneurbydesign.com
• The next company question is an MLM Company a pyramid scheme or scam?
• An MLM Company or network marketing company is a legitimate way of doing
business when done correctly. Unfortunately, like in all industries there are some
who do not. Here are the keys to knowing a genuine mlm company:
• There has to be a product or service. If you are just contributing money to
climb “the ladder”, this is not a genuine opportunity, avoid any such scheme

5. WHAT IS AN MLM COMPANY?
or What is Network Marketing?
with Freedom Mompreneur by Design
JoAnne Mbonigaba
www.freedommompreneurbydesign.com
• Keys to knowing a genuine mlm company (cont’d):
• The person who shares it with you are they more focused on recruiting
or you experiencing and loving the product/service. Research the
company as well and see what the consensus is. If there is a heavy
emphasis on recruiting and little clear information on the product/
service and the value you will receive. This is a company to avoid.

6. WHAT IS AN MLM COMPANY?
or What is Network Marketing?
with Freedom Mompreneur by Design
JoAnne Mbonigaba
www.freedommompreneurbydesign.com
• Keys to knowing a genuine mlm company (cont’d):
• The value of the product/service should be in excess of the cost of the
product/service. This is key because in successful network marketing
companies, approximately 80% of their business/sales come from
people who love the product/service and use it without actively sharing
it ,so there must be clear value that exceeds the cost of the product.

7. WHAT IS AN MLM COMPANY?
or What is Network Marketing?
with Freedom Mompreneur by Design
JoAnne Mbonigaba
www.freedommompreneurbydesign.com
• Keys to knowing a genuine mlm company (cont’d):
• When and if you are ever introduced to a company by someone and you are
considering the product/service for a potential secondary income stream,
ask yourself:will enjoy working with this individual and their team? Research
that individual and other members of their team. Even if the company is a
great and solid MLM, you want to choose wisely who you choose to partner
with.

8. WHAT IS AN MLM COMPANY?
or What is Network Marketing?
with Freedom Mompreneur by Design
JoAnne Mbonigaba
www.freedommompreneurbydesign.com
• So, why do some companies go this route rather than the traditional route?
• It’s simple and proven, word of mouth marketing continues to be the most powerful
and effective method of marketing, especially, when that message comes from
those whom we know and trust!Traditional companies spend millions of dollars
each year to market their products and services while an mlm company takes part
or all of that money and puts it into a fair and solid compensation plan that rewards
individuals for using word of mouth marketing to sell and distribute their product.

9. WHAT IS AN MLM COMPANY?
or What is Network Marketing?
with Freedom Mompreneur by Design
JoAnne Mbonigaba
www.freedommompreneurbydesign.com
• Here is an extremely important word to the wise and key tip for your success if you choose
to go into network marketing or mlm.
• This method of marketing is NOT about bugging your friends and family members, as many
would love for you to believe.
• INSTEAD, It is about your ability and skill to share socially/ indirectly AND then answer
questions from those who show interest in the products or services that your company has
to offer…

10. WHAT IS AN MLM COMPANY?
or What is Network Marketing?
with Freedom Mompreneur by Design
JoAnne Mbonigaba
www.freedommompreneurbydesign.com
• Second to really excel in network marketing or in the MLM industry it’s about two things
1) Personal Excellence and 2) People skills
• If you want to be the captain of your life AND are willing to a)invest in educating yourself on how to
successfully run a small business, b)invest in others because you enjoy working with people and
seeing others succeed then network marketing just might be right kind of business for you.
• If on the other hand, you’re only in it for the money or you just don’t like dealing with people well
then…… You’ll most likely end up failing!

11. WHAT IS AN MLM COMPANY?
or What is Network Marketing?
with Freedom Mompreneur by Design
JoAnne Mbonigaba
www.freedommompreneurbydesign.com
SUMMARY
TRADITIONAL BUSINESS MLM COMAPNY
Store front or physical location where
people can come and buy product or
service
Representatives who share socially,
link arms with other like minded
individuals and sell to people who
know and trust them.
Usually requires significant initial
investment (cash/capital)
Usually requires small to no initial
investment (cash/capital)
Needs time and effort to grow into a
sustainable and profitable business
Needs time and effort to grow into a
sustainable and profitable business

12. WHAT IS AN MLM COMPANY?
or What is Network Marketing?
with Freedom Mompreneur by Design
JoAnne Mbonigaba
www.freedommompreneurbydesign.com
SUMMARY
YOUR STEPS FOR SUCCESS IF YOU ARE CONSIDERING MLM
1: Find a product or service that you love and trust ( you can fall in love with
a product upon hearing about it yet ALWAYS try the product/service first!!)
2: Sign up as a distributor with a good team and leadership
3. Learn effective marketing strategies- invest in yourself to grow your
leadership and knowledge in social selling
4. DO THE WORK. Know that it may be a little messy at first and you will
make mistakes yet go out and do the work, earn the income and then show
others how to do the same.