I shared in this article about four key ways to earn money while working from your home. The last key way was to earn money by selling for a commission, especially by signing up to sell through a direct sales company, also known as an MLM - a multi-level marketing company.

The mere mention of MLMs tends to spark intense debate. Some will swear undying devotion to the MIL they have joined, while others will react with disgust for MLMs, seeing them as little more than “pyramid schemes.” As with many extremes in life, the truth is somewhere in the middle.

An MLM is a company that contracts with non-employees (who are independent consultants) to sell their products for a commission, and to recruit additional independent consultants, from whom they can earn additional commission. There are good MLMs and some bad ones, so if this way of earning money from home interests you, make sure you start your journey by asking these important questions.

It doesn’t matter how much other people love it. If you don’t love it, you won’t enjoy selling it. This is why I’ve never signed up to sell makeup or candles or nutritional drinks or exercise routines. Just not what I love. But hair clips? I’m there.

But the company is important, too, so do your homework. Look them up online and google “[company name] scam” and see what pops up. It may not all be true, but it will give you an idea of the company’s reputation. Read the fine print of the contract, too. Don’t sign it if you don’t understand it.

Every MLM sells some kind of enrollment kit that is generally some amount of product at discount, and marketing materials to start your own business. So that is your first “cost”, and it’s good to make sure that what you are receiving is a good deal for what you are receiving. Beyond that, though, are often other costs - a website fee, costs for training, to attend a company convention, and so forth. Make sure to ask about those more “hidden” costs, and know what is optional and what is required to stay active in the company.

The point of staying “active” is to be able to sell product and earn money. Some companies require you to have a certain number of parties each quarter, or a certain amount in sales. Others don’t. Make sure you know in advance so you are not caught off guard.

As an independent consultant, you are a salesperson first. Make sure you understand what you are selling, and how you are allowed to sell. Via social media? Only through your company website? Through sales events? Home parties? Do you have to carry physical product? What is your commission and how does it depend on your sales? Some companies pay weekly and others monthly. Some wait until you have a certain amount before they will cut you a check, while others will allow you to set up a direct deposit.

Sellig product is one side of an MLM. The other side is building a “team” of consultants under you, for which you are compensated, usual with a percentage of their sales, but also through awards that may include product or trips or other valuable, but non-monetary, awards. Even if you think you will only sell and never recruit, make sure you understand the plan, just in case.

Over-saturation is a thing in direct sales. If you are selling the same exact product as 5,000 other consultants in your geographic area, you will need to work hard to find ways to set yourself apart from others. On the other hand, if your company is newer, or smaller, you will be set apart simply because you are selling something different from everyone else.

When you start something new, it helps to have someone more experienced show you the ropes. Who will that be for you? It may be the person you sign up under, or it may end up being the person over that person. If so, who is that? And is that person a good leader? It’s not always easy to get that information, but it is worth asking.

There are no perfect companies out there, but asking the right questions can help you avoid a bad one. Stay tuned tomorrow for what I have found to be eight important qualities to look for in an MLM.

As a stay-at-home mom, I want to do just that - stay at home! I left the world of public school teaching in favor of homeschooling so I would have more time with my children. But at the same time, life is expensive, and sometimes it is hard to make it on one salary. The wonderful thing about living in the 21st century is that there are MANY ways to earn money from home, without losing out on precious time with our families. These are the ones I have used over the years. What other categories would you add?

Consider your skills and training. What services could you offer to others? Can you teach private lessons in music or art, or offer tutoring in a content area? Could you lead a homeschool community, as I do for Classical Conversations? Could you teach English to children in another country, as some companies do? Could you even teach an online course for your local technical college or a university? Or maybe you are a tech-y person and could help businesses or bloggers manage their social media accounts as a virtual assistant (check out some training opportunities for this HERE!)

When you are an affiliate for a company or brand, you share about their products in exchange for a commission. The price is the same for the customer. Some of the companies I have done this for are Amazon, Christian Book Distributors, and Ultimate Bundles (referral link). (By the way, Ultimate Bundles has a Work At Home Super Bundle available through June 30! Find out more about it HERE!) Generally, you need to have some kind of "platform," such as a blog, to be accepted as an affiliate, but you don't have to have a huge following. Give it a try!

When you think about selling your own creations, think about both physical products and digital ones. Perhaps you have a talent with crochet or calligraphy or some other artwork that you can sell at craft fairs or on Etsy. Or maybe you are a writer. If you have a blog, you can sell your own self-published books there, or you can sell teaching helps on a website like Teachers Pay Teachers. I have sold some of my own creations through my Precious Treasures Store here, and hope to be able to offer some downloadable books in the future.

The advantage of selling your own creations is that you are in the driver's seat. The disadvantage is that everything rests on you - materials, production, marketing, delivery, the works. Another way to make money is to sell other people's products. That is what stores do (Target doesn't make everything it sells, right?), and individuals can, too, via direct sales companies such as Mary Kay, or Pampered Chef, or the company I work with, Lilla Rose. In direct sales, you generally purchase an introductory package of products in exchange for the right to sell those products, either in person or online, for a commission as an independent consultant. You are NOT an employee of the company. Instead, you have your own business that you run according to the company guidelines, but mostly on your own time and in your own way. I have had a lot of fun working my Lilla Rose business, and it is something that my daughter and I have been able to do together. Even my husband and son get into the fun of it!

What other ways to earn money from home have you found? Share them in the comments!