According to Wikipedia, MLM (MULTILEVEL MARKETTING) is a marketing strategy in which the sales force is compensated not only for sales they generate, but also for the sales of the other salespeople that they recruit. This recruited sales force is referred to as the participant’s “downline”, and can provide multiple levels of compensation.

It’s a basically bringing a few people (lets say 4 people for example ) into a business and those 4 people you brought in, brings in 4 people each. These increase the number under your line (genealogy) to 20.

That is 4 people initially brought + 4 people brought by each of them (4 *4 = 16). Therefore 16 + 4 = 20.

As this hopingly continues, so will lucky winning streak continue.

Don’t be mistaken, MLM is the trending 21st century marketing strategies, where enterprenuers / manufacturers / writers / investors sit at a location and their products gets to millions at areas where they would never reach on a normal basis. They may term it “Affiliate marketing” or “franchising” but when you get involved and look at at their “drawing board”, you will understand that you just landed in the same boat.

The slang in business that for every original product, there are 5 counterfeit (fake) still applies here too.

While we have genuine MLM companies (Note when I say genuine, I mean those that have lasted ages, and still existing currently), there are other numerous institutions aiming at your pocket.

These companies come with practiced sentences like “this is a legally registered company under the US government”.



The question you should ask yourself is ”are illegal businesses not registered?”

For e.g. In Internet Fraud (referred to as Yahoo Yahoo in some countries), for them to be trusted by learned men and women, they must register their business.

This therefore doesn’t make them genuine.

BEGGING?

Another case that must really tackled here is whether this has turned to some form of begging by some: where you see a neatly dressed gentleman walk up to you and start his well rehearsed speech about multi level marketing.

In some cases you might even wonder whether they are for a religious cause, because some start with funny phrases like “someone has taken all the burden from you, but all you have to do is talk to only 4 people about this word”.

For a second there, you would be wondering if he/she is talking about Jesus that took all the burden and told you to spread the word.

In cases where you know this individual or he/she happens to be a figure/boss/leader/idolized fellow/celebrity etc, you would be voluntarily forced to give the sign on fees or buy the product.

When this sugar coated mouth convinces you and leaves, you would regret why you fell for such, and will vow to get back your sign on/ purchase fee, which is by convincing another 4 people. Since To ask for a refund, then, is to admit defeat.



INCOME

“The Government investigation claims to have revealed that just 10% ofAmway‘s agents in Britain make any profit, with less than one in ten selling a single item of the group’s products.”

-The Times

Based onMona Vie’s 2007 income disclosure statement “fewer than 1 percent qualified for commissions and of those, only 10 percent made more than $100 a week.”


-Newsweek

How contradictory those written facts are to their proposed income plan in the images.













Having in mind that there are also genuine ones, you won’t rule them out cos of the fakes around.

I believe that there are people out there willing to join this market, here are some tips for them.

5 THINGS TO WATCH OUT FOR BEFORE VENTURING INTO MULTI LEVEL MARKETTING

Multi-level marketing organizations with greater incentives for recruitment than product sales are to be viewed skeptically.
It’s best not to get involved in plans where the money you make is based primarily on the number of distributors you recruit and your sales to them, rather than on your sales to people outside the plan who intend to use the products.

Don’t be motivated by GREED.
Don’t be mistaken, the economist says that human wants are insatiable and I totally agree with that. Also bearing in mind that life is all about risk:

WHY NOT BE AMONG THOSE FEW, TAKING CALCULATED RISK

Most of their core participants attend seminars, forums, trainings etc on how to convince people.

They start with words like imagine making $500,000 in 8 weeks, and your like “500 WHAT!!!”


And you make your decisions based on greed, you might be disappointed considering the fact that multilevel marketing is criticized for being unable to fulfill their unlimited promises for the most of their customers.

Read more at http://caronews.com/mlm-or-professional-begging