Multilevel Marketing (MLM) has become a dirty word in America. When someone says "MLM," people instantly think of illegal pyramid schemes and shy away from you. The new politically correct term is "Network Marketing."
However you want to say it, it is all the same thing: You make money by recruiting a network of team members to sell your company's product. The real incentive is in attracting more members to your team because you not only make money from selling the product yourself; you make money off your team members' sales. The more people you have selling for YOU, the more YOU make.
Why has network marketing become the evil empire of the business world in the minds of many Americans? Because of pyramid schemes, which are now illegal. - First, because you are going to face this barrier in trying to recruit your own sales team, and if you can not alleviate their fears, you have lost a potential recruit.
- Second, you need to establish your credibility. It is just as important as establishing the product you are selling, if not more important.
- Third, it is critical to your own success to NOT get caught up in a pyramid scheme - you have a greater chance of losing money than actually making any.
Susan Ward, a partner in Cypress Technologies, an IT Consulting business, providing services such as software and database development, in her article "Is It MLM or a Pyramid Scheme?" offer the following advice:
"The big difference between MLM and a pyramid scheme is in the business' operations. The entire purpose of a pyramid scheme is to get your money and then use you to recruit other distributors. The entire purpose of MLM is to move product. The theory behind MLM is that the larger the network of distributors, the more product the business will be able to sell"
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