wat is MLM?Multi level Marketing schemes?is MLM illegal?

Answer 1

MLM schemes are also known as Ponzi or Pyramid schemes. They all have one basic similarity - the investments are based on nothing. It goes something like this, a company has something they want you to invest in - they talk about how it is set to explode for whatever reason. They ask you to make an investment in the product and they promise you a return of some high amount (almost always it is in the extremely high numbers like 200% - for ex. your average Mutual Fund only makes about 12%). As investors give money, that money is funneled to people who invested in it earlier - to cover their investment and their promised return. Then the next set of investors will cover the ones previous to them, and so forth. Thus it looks like a pyramid because each succesive generation must be bigger than the previous to cover the promised return on investments. The problem is, the more people get involved, the more "promised returns" the company has to cover. What if people stop investing, or the business has a downturn? Well, then the pyramid topples, because there won't be enough funds to cover new investors. Thus, the guys at the bottom of the pyramid gets left holding the bag.
Ponzi schemes and Pyramid Schemes are illegal. MLM is not because they are tied to some type of real investment - no matter how flimsy it is. An example of legal MLMs are Avon, Amway, Cutco knives, Mary Kay, Rainbow and Hoover vacuum cleaners, etc.

Answer 2

Even though I am no longer involve with any network marketing business but I took away quite a fair bit learnings during my two and a half years of bitter and sweet encounter with MLM. There is nothing wrong with network marketing business in case you have been misled by me in anyway. It's the people in network marketing business whom I have problems with.

Introduction
Network marketing business is made up of 3 parts and they are, the distribution of products and services, the compensation plan and the company.

Instead of relying on retail outlets, products and services are distributed via direct consumers in a network marketing business. In fact if you are involve in any network marketing company which is distributing their products/services using additional channels, you should seriously reconsider your options.

Your success in network marketing business is a combination of choosing the right company and the right team. Notice I left products and compensation plans out of the equation, well that's because a 'right' company and a 'right' team would have solve all your concerns.

So the question remains what is a good or right company for YOU. The right or good team for YOU. And if you are operating in Singapore alone, you need to realize very quickly being a very small country with small population base, expanding internationally is a MUST. In fact most of the very successful network marketers I know are operating outside of Singapore most of the time. In fact a large bulk of their income is derived from countries like Malaysia, Indonesia, China and even India depending on which companies they come from.

Often times many people always think that joining a MLM company prior their launch in a new country is the wise thing to do. But I beg to differ. Yes indeed the market might be fresh and ready but not many network marketing companies are actually very well prepared when operating in a new country and regulation aside, there is always a risk of the company closing down.

This is so true for many of the new MLM companies with not much of track record to show.

So now you know about MLM more?

Answer 3

Man Love Man

Answer 4

Is Mlm Illegal