There are many factors which combine to make MLM appealing and attractive to would-be entrepreneurs. The main attraction is always the most obvious reason which requires very little investment as compared with most traditional businesses. Most MLM companies require only the purchase of a modestly priced sales kit or products to start with. Whereas a traditional business say like a Ice Cream restaurant Franchise, take for example like Haagen-Dazs or Swensons would be asking for at least US$ 80,000US$ 120,000 front capital to start off and this is not yet including your other expenses like salaries and fixed overheads. And because MLM business can easily be run on a part-time basis plus providing opportunities for full-time employees the chance to be entrepreneurs. And as an ideal home based business, MLM attracts many who want to make extra income and still spend time with their families.

However, the downside would be the unpleasant image MLM has long had in the eyes of the press, regulatory agencies and the public. Most of these image problems are unfair, but some were rightfully earned by the abuses of industry scam artists. And also with the cost of entry into MLM is so low, this business always seems to bring out the worst in people.
The biggest problem has always been hucksters who would talk people into making large investments or buying tons of inventory and then disappear into the night. Pie-in-the-sky earnings claims have been a continuing problem, too. Another is people being tricked into attending meetings, only to be pitched a business opportunity.

Beware the peddlers of get-rich-quick programs or something-for-nothing schemes. I personally have come across and bought few thousand dollars worth of absolute crap and thrash that promised buyers quick, easy and instant sky high earnings. And I'm surprised that these same groups of con-artists are still around toady selling these utter useless programs! The point is everyone must understand that MLM is no different from any other endeavor: Rewards come with persistence and hard work. So, if you have been approached and urged to buy lots of inventory right away or promised you'll earn fantastic amounts of money after only weeks in business, then think again before you join!
MLM or Multi Level Marketing is a new paradigm in business, changing from the competitive to a co-operative model. In MLM guaranteeing the successes of others is the only way that guarantees ours i.e. our outcome helps determines their income.

In short, MLM is the low-cost but high-touch and high-tech business.
It is unfortunate that MLM is often misunderstood. The concept itself is absolute sound. It is usually the people who do not have a proper understanding that make it misleading. It is also unjust when others who had "failed" because of their naiveness at best and ignorance at worst, claimed that MLM would not work for everyone, just because it was not right for them.

MLM is also a business system with an enticing concept that is incredibly appealing, some of these factors are:

- Break free from your limitations.
- Be your own boss and decide your own destiny.
- Leverage money, time and technology to the fullest.
- Freedom to choose when, where, who and how to work your
business.
- Avoid daily commuting to and from office/shop by working from
home.
- Work local and earn global even while you are asleep.
- Get paid every month/week for the work you had once
accomplished.
- Achieve success by helping others to succeed.
- Attain financial and time freedom with minimum financial
investment.
- Unlimited growth potential from doing the things you like to do.

The beauty of MLM is that your success does not diminish mine, nor my success diminishes yours. Hence, this is why MLM has created MORE millionaires than ANY OTHER INDUSTRY in this world! Besides, there is no other industry where average people, with above average desire, starting with literally no capital, can change the lives of so many people in such a positive way.

MLM is also the only business I know that offers unlimited residual income potential without the usual risks of owning a traditional business.
Point to note though, it is an industry of direct selling and marketing that one has to work hard and smart in order to be successful. But unlike other selling professionals who get paid only once for making a sale, an MLMer enjoys recurring income for the sales and from on-going consumption of products and services by his/her team members and their customers!

We need to understand and realize that MLM is no "get rich quick" scheme but is an effective business model like any others! An MLM business is thus a real business, but without the overhead and encumbrances of conventional businesses. Developing a partnership with people, helping them realize their dreams, and in turn creating long lasting relationships is what MLM is all about.
There is nothing wrong with the pyramid structure of MLM because it is the the most common structure that one will find in most organizations. The principle of multiplication as in Multi Level Marketing is not new but proven in many instances!

In MLM, we succeed by helping others to succeed. Thus, MLM is not only a win-win concept, it can't work any other way! MLM is the most ethical business that I know of. It actually builds up people when done properly.
In conventional businesses, the CEOs are the only ones that leverage everyone in their organizations. With MLM, you are the CEO of your own organization.

But why is it that over 90% of MLM businesses fail within their first 2 years?
The main reason is that people get into their MLM businesses often over estimate what they can earn in the short term, 1 to 3 months and under estimate what they can earn in the long term, 1 to 3 year! Due to the low investment cost involved in an MLM business, it is also less painful and hence easier for some to give up when they are faced with difficulties without realizing that a tiny seed can also grow to a very big tree!

MLM like any other business requires the desire to learn from mistakes, the diligence to get works done and the determination to get ahead to run a successful MLM business.