What is MLM? Before Getting Involved........Do Yourself a Favour and Read This. What is MLM? (or What is Multi Level Marketing? What is Network Marketing) - it is: A method of compensating independent representatives selling from other than fixed retail locations for both their own sales volume, and also for the sales volume of the additional representatives they introduce to the company.
This may not mean very much to you. So let's use an example to answer the question - What is MLM? I'm Steve and I sell (say) homecare products for an MLM company. I buy goods from the company at a 'wholesale' price and sell at a 'retail' price.The difference, of course, is my profit (if I can actually sell the goods). (The retail price might be fixed by the company or I might be able to sell at any prices I can get). Selling the product is not going to make me very much income BUT the company pays me a % of any sales made by other people that I recruit into the company. Recruitment is where the money is in MLM because, theoretically anyway, I will receive a possibly significant income for other people's work. All I have to do is recruit some. Many MLM companies will not only pay you a % of the sales of the people you recruit directly BUT a smaller % of the sales of the people your recruits recruit and so on. Many MLM companies use these figures (or something like them) to demonstrate the construction of the MLM set up: I recruit 5 people (5 in my 'team' plus myself), my five recruits manage to recruit 5 new recruits each (now 25 in team), they each recruit 5 people (now 155 in team), and they each recruit 5 people (now 780 in team). The theory is that I now earn from the efforts of 780 other people receiving substantial amounts of regular Residual IncomeThe MLM companies are sometimes accused of running Pyramid Schemes (for an explanation of the difference between MLM and 'pyramids', please click on the link). You might also want to check out the following link MLM Scams BUT, BUT, BUT, BUT (AND A FEW MORE BUTS FOR GOOD MEASURE) - behind the theory there are some facts about what ACTUALLY happens to most people in most MLM companies, to find out more try this link MLM Truth Return from What is MLM? to Home Page
|
