Multi-Level Marketing and The Entrepreneurial Mind

April 10, 2006 by Ty | 1 Comment

The Entrepreneurial Mind:

One of my regular visitors asked me to write a post on multi-level marketing (MLM). His question: Is it a legitimate business?

Multi-level marketing is a system where people make money by getting other people to become “distributors” for a product. While some money may be made by actually selling the product, most money is made by creating layers and layers of people who are distributors working under your distributorship. You make the most money by the inventory and fees these folks pay as they sign up. The deeper the layers go beneath you, the more you can make. Some have called this a pyramid. Laws have been passed to limit the pyramid-ness of these businesses, but as always, businesses adapt to the new restrictions.

In Network Marketing Trends

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Comments

  • carl baker on August 8th, 2006 at 6:21 pm

    The designers of EVERY Multi Level Marketing plan has their head up their keister! why? Because of the massive amounts of ‘restrictions’ placed on the new distributors!!! the idea is for ALL distributors to make money; not just the people at the top who originally got in! if you want the money to flow UP in greater amounts - DON’T RESTRICT THE PEOPLE ON THE BOTTOM !!! duh!!! Let your new distributors earn income right away without having to buy a certain amount of product and sponsoring 100 ‘new’ distributors, who tehn have to sponsor 100 ‘new’ distributors each before the original sponsor sees any money and is now IN-DEBT about $1000.00 !!!! will someone come up with a super system to share the wealth amoung all of us without jumping through hoops?!!!! now when the usa needs a counter-system to working 40 hours a week; 52 weeks and year, every MLM systems has failed !!!! and you wonder why MULTI LEVEL MARKETING HAS SUCH A BAD NAME?????!!!!!

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