The Facts About MLM
For many people, multi level marketing can be summed up as providing both a positive and negative element to the online world. If you have done any reading about MLM, you may be knowledgeable about this. Simply put, it is the pyramid model that works with MLM.
You bring in people to promote products, who do the same with other people and it goes on. Everyone involved on the down line from top to bottom of the pyramid gets part of the money that is made. However, nothing seems to work in that manner. This is why you should learn all of the little details before you get sucked in.
Many people have been told that the business model for MLM is one of the best out there, a definite moneymaker that has no equal. This is not true. Despite these rumors, MLM is only profitable for less than 1% of the people who actually try it. It is actually a lot easier to simply start your own business and sell your own products or services. Unfortunately, MLM is not all that it is touted to be. In fact, the business model is quite "shaky" to put it nicely. One good book keeping error and the whole system falls apart.
They want you to believe that MLM is not a pyramid scam because people are receiving physical products. But, the similarities are so much alike that MLM cannot be called anything else by a pyramid scheme. Just because you are not mailing your cash does not mean you are not getting scammed. This has become so hard to figure out, though, that the courts had to get involved. You can sell a maximum of 30 percent to distributors. Anything other than this is considered to be a scam.
The recruiters for MLM want you to believe that this business model is good for becoming financially independent. This is false.
You cannot make real income if you are a part of a MLM business model. Even if you sell a lot of products, most of the money you make will go to the people above you in the pyramid. Then, of course, there are the fees you need to pay. You will have to pay for memberships or other things such as fines for missing a quota. Unfortunately, it will be difficult to make money as due to the accumulating fees.
If you are a newbie, MLM looks like a good bargain. This is why so many people who are new to earning money on the Internet get lured into its web. Do not fall for this crap. The points made in this article are only the tip of the iceberg of why MLM is not a good bargain. You can probably locate additional reasons too.