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When people saying they are doing or they are involved in MLM ( Multi-Level Marketing ), they are actually building a business. 

They are participating in selling, talking to prospects ( friends, relatives, colleague, neighbours, etc ) about the business.

Yes, selling is part of building your MLM business, but most importantly is to sponsor your prospects into the business, turning them from customers to become members / distributors of the company. In other words, make them your downlines. 

What is the difference between servicing customers and servicing downlines?

Customers buy your products, and you earn retail profits whenever they buy from you, but they come and go. They won't last. Selling won't take you far. 

Downlines are locked into your organisation. You earn whenever they and their downlines buy each month. They even buy at member's price. Building an organisation will outlast you in this business.

MLM business is about building organisation.

There are MLM companies out there that requires you to maintain sales in order to keep your organisation. ( Note : Not all MLM companies. )

If you forget or never maintain your sales in a single month or, for some, 2 months consecutively,  your whole downlines will be gone. You will have no downlines, zero.

For example : You have built up to 50 members, over a period of time, but you didn't maintain sales for the month of July, you will begin with zero member the next month, in August.

You will have to start sponsoring again. You will begin all over again.

Beware of losing your organisation.

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Authored by kevinn on 30th July 2010