Multilevel Marketing: What It Is and What It Isn't

Multilevel Marketing in a Nutshell

When people hear of "multilevel marketing", theystart to get the feeling of getting scammed or becomea part of a scam, in the least. This isn't an uncommonreaction as there have been a handful of infamous pyramiding scams which have victimized a lot of innocent people. But in the business model sense,mlm marketing is really a legitimate business.

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Usually, these two are thought of as the same thing, but they're definitely not. Multilevelmarketing is a legitimate social business model which aims to make the end consumers pay a lesser amount since labor and material costs - and essentially, the middlemen - areexcluded from the whole deal. On the other hand, pyramid schemes are illegal and would probably land you a lawsuit in the end. These scams only want you to invest your moneyin them so that you would later get "rewards" for doing so, even though what you'reactually doing is just transferring money from the "upline" to the "downline."

Too Good To Be True

It's probably a pyramid scheme. The confusion between thetwo systems as earlier explained stems mostly from pyramiding schemes that disguise themselves as legitimatemlm marketing businesses. These pyramiding schemes use thesame vocabulary and even the process of building up your network.In both business models, you have to sell some kind of product, you will create a "marketing network", you will either be "sponsored" by your "upline", or you will sponsor a "downline" with the idea that the "upline" getscommissions from the sales of the "downline." The first thing that would tell you that youare in a legitimate mlm marketing business is that the commissions from your "downline"are just a plus, but the bulk of your profits come from YOUR sales and YOUR hardwork.

Entering the Market

Multilevel marketing is a great business if you are the type who wants to work at home inyour pajamas. It's also pretty easy to get into, even if you only have $29 as capital. It'svery flexible, and you don't need to have a college degree to go for it, just a bit of computer knowledge.