Review of Multi-Level Marketing

Review of Multi-Level Marketing

What is MLM?

MLM is the short form of Multi-Level Marketing as well called network marketing. This is a marketing strategy in which the sales force is compensated not only for sales the distributor personally generate, but also for the sales of their recruited distributor. Creating multiple recruiters as a distributor and a hierarchy of multiple levels of compensation.

Is network marketing a pyramid scheme?

No, network marketing isn't a pyramid scheme. Many pyramid schemes attempt to present themselves as legitimate MLM business. The U.S. Federal Trade Commission (FTC) states, "Steer clear of multilevel marketing plans that pay commissions for recruiting new distributors. They're actually not legal MLM business.

How does a Multi-Level Marketing company work?

Multi-Level Marketing companies recruit a network of independent sales people who sell products directly to people in their community. These sales people earn income based on their personal sales, as well as the sales of people they recruit to work for the company.

What is a network marketing company?

Network marketing is a type of business opportunity that is very popular and powerful with people looking for part or full time flexible businesses. Some of the best-known companies in America, including Avon, Mary Kay Cosmetics as well from China, including Tiens Group; fall under the network marketing umbrella.

How long does it take to be successful in MLM business?

There are six key elements you should be looking for when selecting a business opportunity under MLM business umbrella as follows below:
  • Choose wisely the best MLM business.
  • Practice what they teach. To be succeeded in MLM business you need to be willing to listen and learn from mentors.
  • Be confident and have patience.
  • Lead from the front and teach your recruited distributor what you have learnt from your mentor. (Replicate it).
  • Build a strong network, follow up them and teach them.
  • Be a strong leader and take care of your business.
  • Don't quit your day job yet.

What is difference between a pyramid scheme and multi-level marketing opportunity?

It is understandable that consumers often have difficulty telling the difference between an illegal pyramid scheme and a legitimate multi-level marketing opportunity. Government regulators and the industry continue to debate where the legal lines are drawn.
One of the major difference between this two is pyramid scheme does not have any physical products to use and sell for but multi-level marketing companies offer variety of their own produced products, offers people to sell directly and pay the commission when one of the products sold.

How do we get which is legal or illegal?

If you still didn't get what does that mean then simply let you know that pyramid scheme offer automated money building system where they do not have any products they own and bringing products from others and let it run as their own products which is illegal.
But when a company have registered their own industry, factory, distribution department, production and so on and selling products through the network  then you should call them as multi-level marketing company. If any MLM company does not have above things then they are not legal as well.
"A pyramid is strictly a money game and has no basis in real commerce. Normally, there's no product involved at all, just money changing hands. Modern-day pyramids may have a product, but it's clearly there just to disguise the money game. Network marketing is a legitimate business".

How much is the network marketing industry worth?

The Network Marketing and Direct Sales profession hit a new record in 2012 with $167 BILLION in global sales. Network Marketing is BIG business.! Roughly $65 Billion (40% of the $167 BILLION), was paid directly to distributors via commissions. That's $5.5 billion a month, or $185 million a day!

How much does it cost to join in a MLM business?

There is no cost to register as a MLM distributor but what you have to do is purchase the products package offers by the MLM companies to start your business. The products you purchase use yourself and if you get good result use of it then recommended it to your community.

Review of Multi-Level Marketing Review of Multi-Level Marketing Reviewed by Abdur Rakib Sohel on July 08, 2017 Rating: 5

No comments:

Powered by Blogger.