Multi-Level Marketing or MLM: Scam or Reality
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Multi-level marketing (MLM), also known as Network Marketing, is a business- distribution model that allows a parent company to market its products or services.Multi Level Marketing and Network Marketing Companies. Find mlm opportunities and browse MLM Start Up Information. Specializing in MLM Multi-level Marketing.
Multi-level marketing (MLM), also known as Network Marketing, is a business-distribution model that allows a parent company to market its products directly to consumers by means of relationship referrals and direct selling.
Independent, unsalaried salespeople of multi-level marketing, referred to as distributors (or associates, independent business owners, dealers, franchise owners, sales consultants, consultants, independent agents, etc.), represent the parent company and are awarded a commission based upon the volume of product sold through each of their independent businesses (organizations).
Independent distributors develop their organizations by either building an active customer base, who buy direct from the parent company, or by recruiting a downline of independent distributors who also build a customer base, thereby expanding the overall organization. Additionally, distributors can also earn a profit by retailing products they purchased from the parent company at wholesale price.
Distributors earn a commission based on the sales efforts of their organization, which includes their independent sale efforts as well as the leveraged sales efforts of their downline. This arrangement is similar to franchise arrangements where royalties are paid from the sales of individual franchise operations to the franchisor as well as to an area or region manager. Commissions are paid to multi-level marketing distributors according to the companys compensation plan. There can be multiple levels of people receiving royalties from one person’s sales.
It is sometimes difficult to distinguish legal and reputable MLMs from illegal pyramid or Ponzi schemes. MLM businesses operate in the United States in all 50 states and in more than 100 other countries, and new businesses may use terms like “affiliate marketing” or “home-based business franchising”. However, many pyramid schemes try to present themselves as legitimate MLM businesses.
Before investing your all in an MLM company, you need to evaluate its product. The role product plays in MLM is huge! Every company that has experienced long-term success has been built on great product and product loyalty. Any success a company has that is not built on product value and the loyalty of its distributors to its products is fleeting at best. In the end, a company only survives if it has great products.
The fact is, certain kinds of products are suitable for network marketing and others are not. Traditionally, network marketing seems to work best for products that require: 1) some but not extensive education and training, plus 2) a lot of motivation and/or support.
Duration : 0:10:43
TheMaximumLife on December 22, 2009
My issue with MLM …
My issue with MLM is the dishonesty and unethical behavior of most companies. The schemers at the top make a ton while those in the middle and bottom make of themselves bothering their friends and family.
Further, the top folks make others profits off their training and marketing scams that cost MLM newbies a ton. The appeal to greed and laziness gloss eyes and cloud judgement. And I have a host of lost friendships from too many who failed and made fools of themselves in their MLM scams.
jazyskowski on December 22, 2009
True …
True RECESSION-PROOFf Product! Fastest growing MLM on the plane. arrived in the US January 15, 2009 – Already HAS over 5,400 distributors in the US! This train is leaving! Do you want to get onboard or be left at the station? Check out my videos today!
thewaytosuccess on December 22, 2009
Good video, …
Good video, covering some interesting principles. You also seem like stand up guy. Keep up the good work!
William Lawson
Ficksonlee on December 22, 2009
I really liked your …
I really liked your channel and this video. If you need any help getting this video exposed I use a site called tubeviews.(net) It has really helped like 20 of my main videos get to the top in position.
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autotextsender.(c0m) and autotextmailer.(c0m)
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DrewDownsManagement on December 22, 2009
I like your video. …
I like your video. I gave it 5 stars. We are a little newer to Youtube, can you please give us your honest opinion about our videos and are tips on inexpensive marketing.
AdrienneSmith40 on December 22, 2009
Great message Jerry …
Great message Jerry! Most people just don’t understand what’s involved and how this business really works. You explain it so well. Keep up the great work my friend. Always look forward to your videos.
Adrienne
pplstan92 on December 22, 2009
Great job jerry. …
Great job jerry. Good to see ya. Your right the only way to fail is to quit, I remain Pre Paid for life..
Stan
johnfiler on December 22, 2009
Jerry,
Good video, …
Jerry,
Good video, gets right to the point.