What Is Mlm Or Multi Level Marketing?

Multi Level Marketing or MLM is an desirable business opportunity to many people but is often mistaken as a pyramid scheme but in fact it is not.
You can make money in MLM by refering goods or services that are readily available to be circulated by a registered agent (known as a distributor) to friends and family and by referals from them (your customers) to people that they know and so on. You may have also paid a joining fee to become a distributor and you also need to recruit other like minded people to join your team and do the same as you this is known as your down line and the bigger this becomes the bigger your commission check will be.

Pyramid schemes on the other hand have been outlawed in most countries and do not offer goods or services they just require you to recruit people usually for a large upfront fee and offer no product or service, no support, training or marketing materials and the ones at the bottom of the pyramid lose often out as it becomes more difficult for the ones at the bottom to recruit and the whole scheme falls apart.

It is good practice to do a check on an MLM company before you sign and this can be done quite easily these days just by performing a simple search on the internet. I would ask myself questions like is there a large upfront fee to join and when I say large I mean over £200.00 sterling and is there a cooling off period or money back guarantee if you decide that it is not for you.
See if you can visit the company's website and if possible try to attend a local seminar that has other distributers in the corporation and ask them questions such as how long have they been members and how well are they doing and also try to get a sample of the product or try to find someone that is or has used the service offered.

It is also a good idea to seek out the company's literature especially if it is a company that you have never heard of before and try to find out how long the company has been trading and if it is registered at the proper authorities in your particular country or the country it is claiming to be from. Soon enough you will find information if it is legit.
The biggest difference between an MLM and a pyramid scheme is in the business operations as the purpose of a pyramid scheme is to part you with your hard earned money and then use you to recruit more people where as MLM is a business model designed to move product and reward its distributers accordingly.

By: Simon Borg

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