Multi Level Marketing

The internet is full of Multi Level Marketing business opportunities that have made some people money and nearly bankrupted others. What most people want to know is, “are these Multi level Marketing ventures scams or the real deal?”

It's hard to get a clear answer from either side since each has an agenda, whether it is to get you to join their Multi level Marketing network or not to. Trust me it’s not hard to come across Blogs or WebPages for either side of the argument.

The typical set up for a Multi level Marketing operation is a combination of direct marketing and franchising. This is setup in a top down fashion in which the parent company spawns independent contractors. They are in turn paid in accordance with the amount of sales their cell produces.

Thus a commission in a Multi level Marketing network will be earned upon the sale of service or products. In some cases this will be to another independent product distributor. There are also a variety of compensation plans set up by different Multi level Marketing networks, each being slightly different but maintaining the same goals of increased sales.

There are in fact many legitimate Multi level Marketing operations in existence that offer a decent profit potential for their members. However the entire industry has been tarnished with a bad reputation due to the many scams associated with Multi level Marketing.

The plague of Ponzi schemes and Pyramid Scams has greatly contributed to the notorious reputation of Multi level Marketing businesses. Amidst the hype and advertising it’s getting harder and harder to distinguish them.

An example of a legal Multi level Marketing business that had to deal with the negative image of the industry is Amway. In 1976 they were sued by the FTC for selling motivational materials in their product line, which at the time was deemed unethical. It would be Amway’s victory in this legal battle that would open the floodgates for Multi level Marketing style businesses.

The reasons that Multi level Marketing networks are stereotyped as scams is because too many have burned their members. An example of a fraudulent Multi level Marketing network is one that encourages it members to aggressively purchase products from their catalog knowing that the products are not selling well. Subsequently, the company collapses due to a poor marketing or business infrastructure leaving its members with an overstock of poor selling products.

The majority of criticisms and scam affiliations originate from the belief that the Multi level Marketing networks make their money from member fees rather than product sales. For instance I went to an MLM meeting where they were selling instructional tapes to go along with the products for $100. This type of activity is what gives MLM a bad name.

These days the Multi level Marketing industry is still booming due to some innovations in the business model. Proprietors of these networks will avoid calling them MLM opportunities due to the negative connotations. They will call it network marketing or something similar to draw in people that have learned to avoid MLM. In the end my advice is to very cautiously proceed with Multi level Marketing. If you feel that you would be spending more on instructional material or undesirable products then stay away.

There is a reason that only 3% of network marketers will succeed. Making money with these businesses is an uphill battle that I now avoid since I found a home business that works. Best part is there are no products to sell to my friends or family. You should Check It Out Here.

Best of Luck,
Steve Albright

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