What is Multi Level Marketing or MLM - Is MLM Just a Scam ?

Multi-level marketing or MLM is a business model that is gaining momentum, growing in acceptance and legitimacy. As its promoters claim, it will eventually replace most other forms of marketing and sales.

What is Multi-Level Marketing or MLM ?

For starters, multi-level marketing or MLM, is a marketing strategy that you can use when you are selling products to others. When a person or recruit is added under your reference key, they are known as a distributor's “down-line.” All distributors also make money through direct sales of products to customers. You will also receive a percentage of that person’s profit.

MLM employs a marketing strategy that compensates them for not only their sales, but also the sales generated by a “down-line” of independent distributors. This may receive another name such as “brand partners.” In other words, partners whom they have recruited.

When they start to tell others and they begin to join, then you are still able to receive profit as well because the first person is under your name from the beginning of the marketing process.

Many people use MLM to build a long lasting stream of income because the more people you get to join your organization, then there is no set limit for the income you can make. It is a recurring type of income that comes in every week or month.

They key is to keep your list growing constantly because some people may decide to opt out for personal reasons, which can stop your income from coming in.

Type of MLM Companies

Some multi- level marketing services that you may see today include weight loss products, mobile phones, and marketing products online. A lot of weight loss products that are associated with MLM include smoothies. Many companies today are using more natural products and proteins that help people to manage their weight.

Since many of these products are not sold in stores, they turn to ordinary people to sell the products for them. These companies also include incentives for those who can sell as much as possible within a certain time frame.

Many mobile phone companies are now switching to marketing their products online because many people go to the internet to find cheap phone plans. Some companies even offer free phone service to sellers who build large groups who represents the products. Overall, it is a good business to work with because you can make as much money as you want, and it begins to grow every month.

There are many ways that MLM or multi-level marketing can be used, so let us look into a few options that may suite your needs.

That said, multi-level marketing typically requires that independent distributors sell products over the phone or directly in new customers’ homes, or by recruiting other individuals to join their “down-line” and also sell products and recruit sales participants.

Any profits generated by someone recruited to sell push upstream to the individual who recruited them, the recruiter of that recruiter (and the chain goes on to the top from there). The biggest challenge is the immense amount of time and energy it requires to meet both sales quotas and recruiting needs in order to generate new revenue streams.

Don't People Make Money in MLM or multi-level marketing ?

Our analysis of the MLM business is based upon 20 years’ experience in this field, writing about MLM models, and carefully studying numerous MLM marketing and pay plans.

First, we will analyze the “driving mechanism” of MLM's. We will detail how they are intrinsically unstable, guaranteed by design to over saturate the market with no one noticing.

One must know that there is a huge difference between network marketing and pyramid schemes.

People continue to try to recruit newbies into network marketing deals that seem like some type of money game or pyramid. They are likely illegal and will get you into trouble.

The unfortunate “distributor” at the bottom is the loser, and once this becomes apparent, good people start to get a bad taste in their mouths about the whole situation.

Having said that, YES! Money can be made with MLM.

The question is whether the money being made is legitimate or “made” via a sophisticated con scheme.

Is Multi-level marketing or MLM a Scam ?

Multi-level marketing or MLM is a legitimate business strategy, though it is controversial. One problem is that pyramid schemes, which use money from new recruits to pay the people at the top, often take advantage of people by pretending to be engaged in legitimate multi-level marketing. Pyramid schemes can sometimes be spotted by their greater focus on recruitment than on product sales.

And, if MLM is “doomed by design” to fail, then the answer is, unfortunately, the latter.

The biggest problem with the bulk of MLM programs centers on the sustainability of profits generated up the chain of the organization. Traditionally, profits are limited to the most senior levels of the organization. However, to reach that level of an organization requires results and circumstances that are very difficult to achieve.

Bottom Line – Is MLM Just a Scam ?

Not every MLM is just a scam. But, a person new to this field should be properly informed and aware of such scam companies

It takes a lot of commitment to work with MLM. Some months may not be as great in the beginning, so it takes a lot of patience when you are just starting out.

If you subscribe to our newsletter, you will be able to avoid those slow months by following directions on how to market yourself and your MLM products.

Is MLM Just a Scam ? NOT ALWAYS, but it can land you in trouble if you are not properly advised.