MLM – The Bad, The Ugly And The Plain Old Fashioned Liars
What is MLM?
It is a system of marketing where the majority of the income and cash flow comes from recruiting new members, rather than selling a product. Where the emphasis is on recruitment
Are Multi-Level Marketing and Network Marketing the same?
Basically, yes. MLM has a bad reputation, so the term is rarely used nowadays. It is a matter of degree. Network marketing companies require their distributors to sell a certain minimum amount of product, as well as recruiting new distributors.
How does MLM work?
One person has a product, he gets ten others to pay him (or her) to sell the product. These ten people each get ten more to sell the product. There has to be a product. Part of the payments from these third level people is passed back to the one person at the base level. These hundred people recruit another ten each. Again the income is shared between the previous levels. 10, 100, 1000, 10,000, 100,000, 1,000,000, 10,000,000, 100,000,000. Well before eight levels of this upside down pyramid have been reached the product will have reached saturation point. BUT, the...