It is an income arena based on the largest portion of the average population with annual growth rates surpassing mainstream businesses - boasting the most self made millionaires - yet, also infamous for the highest failure rates across the board.

What is this animal we call Multilevel Marketing?

What proliferates its growth while maintaining storm clouds of doubt?

Why do so many fail in an industry that is a time-tested, proven vehicle for so many others?

If there were ever a true business anomaly, it would be Multilevel Marketing.

Within its realm you'll find variations and spin offs such as Network Marketing, Direct Sales, Referral Marketing and more. It is not my intention to debate the gray areas that separate these categories - only to discuss the field in general as it relates to the people involved and their ability to be successful. So, for the sake of our discussion, we'll stick to Multilevel Marketing. In short, the idea of marketing products and/or services through a network of likeminded individuals acting as independent business entities.

Multilevel Marketing remains a business anomaly in that it is overflowing with opportunity for Middle America, average Joe. It hosts an abundant variety of products/services are available for every personality and lifestyle. And probably the biggest standout feature is that Multilevel Marketing produces obscene incomes for many - yet, heartache and failure for so many more. It is this vast chasm of disparity that perpetuates the anomaly.

Most people obviously miss at least one of the required pieces to successful complete the Multilevel Marketing puzzle.

In no particular order, here are the primary pieces of the puzzle. I've established 15 pieces and the first 5 are here. We won't dissect each of them at this time. For specific breakdowns and solutions to a given topic, see some of my other articles on this subject.

1. Emotional Reactions vs. Logical Decisions: All the decisions you make can be lumped into two categories. Emotional or logical/practical. Save the emotional decisions for your choice of restaurants or which movie to see this week. When it comes to making decisions about your Multilevel Marketing business, use your head - not your heart.

This issue plays a critical part in Puzzle Piece #13 also. See Part 3 of this article.

2. Trapped in a Love Story: Probably the biggest cause of failure over the years has been this very "human" fact. As mentioned in Puzzle Piece #1, People FALL IN LOVE with a product and decide they can get rich promoting it. Period. Without investigating or evaluating the many other factors that contribute to a successful business. They become trapped by an emotional reaction, investing time and money in a venture that doesn't really offer realistic potential for success.

Don't get me wrong. There's nothing wrong with enjoying a great product or even recommending it to someone. We all do it. But being in love with a product is NOT enough to build a successful Multilevel Marketing business. Most of my associates and I enjoy products from many different companies. But we don't "promote" all of them as a business. We only promote those that meet all of our criteria for success.

3. It's Called Multilevel Marketing: There's an old saying that will forever remain true. You get out of it what you put into it. If you're just playing with your Multilevel Marketing program, you're playing with your future. If you treat it like a hobby, it will always be a low priority with low results. If you're serious, treat it like a business and get serious. Plan the work and work the plan. And yes, it WILL be work. It will be profitable work with long term residual results if done right - but work nonetheless.

4. Company Stability and Longevity: Again, we find Puzzle Piece #1 playing a role as people overlook or neglect to fully evaluate the company they're promoting. In many cases, they're simply promoting "the product" alone. Little consideration is given to the company behind it. Practical business decisions should include behind-the-scenes factors such as who's responsible for paying you - what is their experience - are they properly funded for the long haul - and many other issues that affect your long term security.

A common reason for this misstep is when Multilevel Marketers get involved in "new" programs - startups. Falling prey to the feeding frenzy that often accompanies a so-called "new" product or concept, thousands of marketing wannabe's get in line to be first - or near the front of the line - to promote the "latest and greatest."

Yes, there are advantages to participating in "startups." I'll discuss those more in another article. Suffice it to say at this point that the greed and fever pitched hype of a start-up is best left to those with experience. At least, to those who can afford to fail - which is what 98% of start-ups do. For now, the new Multilevel Marketer should stick to something with some track record.

5. Compensation Concepts and other Common Confusion: This issue is constantly abused and consistently confusing. What type of pay plan is best? How do they really work? I'll go into some of the details in another article. But, rest assured, there are only a handful of basic concepts - each with its own pluses and minuses. Your experience should greatly influence your willingness to participate in many of them.

A multilevel pay plan, regardless of what some promoter is calling it, offers the ability to earn on the efforts of others. Thus, the entire concept of "networking" becomes a reality and produces rewarding residuals. Falling back on Puzzle Piece #1, make a business decision. Evaluate the plan that makes the most sense for YOU based on what you're able to invest in time and effort. The newer you are to the Multilevel Marketing industry, the simpler the pay plan should be. Fewer hoops to jump through - few, if any, volume requirements just to get paid. For example, Multilevel Marketing rookies should usually avoid binary plans.

Each new program introduces its version of "the best plan yet." In fact, 99.9% are just variations on an old theme with a fresh coat of paint. Unilevel, Stairstep Breakaway, Compressed, 2-Up's, Matrix and Binary are the most common concepts you will encounter. Investigate first. Look before you leap. You do NOT have to be an expert on your pay plan to be successful. But, you DO need to know if it offers realistic potential based on YOUR skill level.