Scoop via MLM – Network Marketing Blog:
Do the words MLM, Network Marketing or multi-level-marketing ring a bell? These words all describe companies that pay you commissions for referring people to their products.
MLM or Network Marketing is back. The MLM Direct Selling Associate now reports that nearly 75% of all Americans have now used or been presented with a product from a Network Marketing company. The most well known, International, Network Marketing Companies are Amway (now Quixtar), Mary Kay and Life Force International.
The allure of Network Marketing or MLM to consumers is the massive amounts of money that some in the industry claim to make. These companies pay you a commission on all the products you sell. They also pay you commissions on the products that anyone you refer to the company, sells. If the people you refer refer others, you earn commissions on the purchases of those people too.
Sound like a pyramid? There’s a difference. Really. Network Marketing has exploded in the last 20 years since Amway fought their landmark case making and distinguishing the MLM or multi-level commission structure as legal and separate from a illegal pyramid structures.
MLM or Network Marketing companies offer you and your friends of course, commissions for referring people to their products. These companies now sell every kind of product you can imagine.
Kim Klaver on April 18th, 2006 at 12:47 pm
Ty–
What is the specific reference for this post? The URL, whatever the original source is?
Thanks.
Kim Klaver
Ty on April 19th, 2006 at 9:17 am
The link is located at the top of the article (Scoop) http://www.scoop.co.nz/stories/BU0604/S00257.htm
J. Kruczek on April 19th, 2006 at 11:17 am
Everyone refers to MLMs as pyramids, but aren’t all large companies basically pyramids? Consider IBM, you have the guy(s) at the top and you can trickle down the corporate structure to the guys at the bottom of the pyramid.
The big difference is, the guys at the bottom cannot control how much they make without involvement from those above them.
In MLM, the guys that are initially at the bottom can increase their position and income based upon their motivation and willingness to succeed. There are no limitations.
Which do you prefer?