Multi Level Marketing (MLM)

The Pyramid myth and other

misunderstandings

By Ted Nuyten - The Netherlands - ww

w.businessforhome.org
Is MLM or Network marketing a Scam?

Madoff

By Ted Nuyten - The Netherlands - ww

w.businessforhome.org
 Short answer ..
If MLM or Network Marketing is a
pyramid scam, 67 million people
worldwide, would be in prison ….

By Ted Nuyten - The Netherlands - ww

w.businessforhome.org
 Long answer!
Network marketing and Multi Level
compensation plans were declared legal
ways of compensation over 50 years ago:

By Ted Nuyten - The Netherlands - ww

w.businessforhome.org
Direct Selling Organisation (DSA)
•67 million Direct Sellers
•95% has a MLM compensation plan
•$110 billion revenue worldwide

By Ted Nuyten - The Netherlands - ww

w.businessforhome.org
 Direct Selling Supporters
• Bill Clinton - Former USA President
• Tony Blair – Former UK Prime Minister
• Michael Gorbatsjov – Former USSR President

By Ted Nuyten - The Netherlands - ww

w.businessforhome.org
 DSA Facts & Figures
• USA is the largest market, 15 million distributors,
$30 billion revenue

Country Year Revenue Distributors

United States 2007 $30 billion 15,100,000
Japan 2006 $20 billion 2,700,000
Brazil 2008 $10 billion 2,200,000
South Korea 2007 $9 billion 3,187,933
Germany 2007 $9 billion 778,000
Mexico 2007 $4 billion 1,900,000
United Kingdom 2007 $4 billion 419,500

By Ted Nuyten - The Netherlands - ww

w.businessforhome.org
 Misunderstanding:
“Only the top make money”
• There are numerous examples of
distributors who make more money
then people who joined earlier…

By Ted Nuyten - The Netherlands - ww

w.businessforhome.org
 Why?
If it would be not possible to earn more then
your up-line, nobody would join an
opportunity….

By Ted Nuyten - The Netherlands - ww

w.businessforhome.org
 An other way to explain this
misunderstanding
If you introduce a “Top Earner” you could
make a small fortune.. The “Top Earner” will
earn more, but you can receive a % over his
or her earnings.

By Ted Nuyten - The Netherlands - ww

w.businessforhome.org
 Misunderstanding:
“You have to be broke to start”
• Some people are broke, however people
from all walk of life join Direct Selling
• Millionaires, Actors, Doctors, business men,
stay home moms and many others..
• The start up costs are often between $25-
$500, a small investment to start a great
business.

By Ted Nuyten - The Netherlands - ww

w.businessforhome.org
Fact: The average Top Earner Income
The average Top Earner make approx.
$ 25.000 a month / $ 300,000 a year.

There are over 5,600 people who make a full

time year income ($60.000+) with Direct Selling
Source: www.businessforhome.org

By Ted Nuyten - The Netherlands - ww

w.businessforhome.org
 Fact: Newbies often introduce
Top Earners
The majority of Top Earners are introduced
by rookies. People with no experience in
direct selling!

By Ted Nuyten - The Netherlands - ww

w.businessforhome.org
 Where is the money coming from?
 The majority of the revenue in Direct Selling
(80%+) is coming from customer orders.
People who only want the product.
 It’s obvious that a customer will not be
rewarded as a networker.
 Customer revenue is put into a “networkers
pool” and is rewarded to networkers who build
up an Direct Selling organization.

By Ted Nuyten - The Netherlands - ww

w.businessforhome.org
 A few MLM Celibrities….
AC Milan, Boston Red Sox, Phoenix Suns, Inter
Milan, and many more endorse MLM products

By Ted Nuyten - The Netherlands - ww

w.businessforhome.org
 Success!

By Ted Nuyten - The Netherlands - ww

w.businessforhome.org