Anybody knows how multi level marketing works?

Question

I recently attended a meeting where they were promoting some products, and a method of selling, called Multi Level Marketing. Everybody there in this meeting was so hyped up, like nothing can stop them. Its frightening, I also walked out the hall. But I stayed back to listen to that guy up on stage going on about how much money he has made, and how many others like him have been making tons of money, selling their products and recruiting new members to do the same thing.
does anyone out there know how this works? If so, please share

Answer 1

Multi Level Marketing (or MLM as it is commonly known) is a marketing system or methodology by which people can promote, sell and distribute products. There are of course lots of other systems that have been around longer and thus are more accepted by the public.

Examples of previously radical marketing systems and methodologies are fixed pricing (there was a time where every single item was subject to negotiation) and franchising (there was a time that congress almost declared this system illegal).

So MLM is simply that, a system to sell stuff. What went wrong is, certain parties used an unfamiliar system to most people to sell stuff other people don't need, or are not meant to own. It happened before and it will happen again.

Actually if it wasn't for the bad rap on MLM its a pretty good way to sell your products with minimal advertising. It uses the power of familiar faces and the need of almost everyone to make a little extra money.

Having said that, there are some MLM practices that should be simply avoided. There are those that you make money simply by inviting people, and you get your commission from the initial membership fees which are used to claim products. In this case nothing is really sold, except memberships. This is more like pyramiding, which is illegal, but nonetheless it is still a form of MLM.

Check out MLM, you've got nothing to loose. You might learn a few things. You might find out you have a talent for selling. You might find out it's not for you. Either way its a positive outcome.

Just be careful when your sponsor or his boss starts telling you that it's really EASY and you DONT HAVE TO SELL ANYTHING. Then that's a scam, make a quick sprint for the exit.

Good luck

PS - Of course they were excited. For every one of you that joined they would make a commission

Answer 2

Be wary of these Multi Level Marketing (MLM) schemes. It has been shown in court cases and complaints with the Federal Trade Commission that there is a 97% failure rate with MLM programs. The only ones making the big bucks are the ones that got in at the beginning of the scheme. Then there is the way these programs are advertised and promoted. What you saw in the meeting is a classic example: one or two big money makers up on a stage hootin' and hollerin' about all the money they've made and how easy it is for anyone else to do the same. What they don't tell you is exactly what you will be doing and that is selling and most if not all people would rather be buried up to their necks in a hill of pissed off Texas fire ants rather than take up selling something. Most of the products or services you will be selling are over priced and no different that what you could buy much cheaper at Walmart or Walgreens so it is an uphill battle to sell enough to make any money. A good source of info is the FTC website www.ftc.gov. Do a search on that site for multi level marketing or network marketing as it is also called. That will give you an eyefull on this subject. Another good source on this subject is www.mlm-thetruth.com. This site very thoroughly explains MLM and how it works.

Answer 3

You are right to be skeptical - trust your gut. Multi-level marketing can also be considered to be a pyramid scheme. This is how it works -- the person that invited you to the meeting makes money off you because you are selling product. Then, you enlist your friends and acquaintances and maybe even strangers into the organization, and you will get a cut of their commissions, and they enlist their friends, etc. The only people who really make any money out of this are the people who got in at the top, like the guy giving the talk. Most people who get into this have very high hopes that are never realized. By the way, the products in multi-level marketing are generally of poor quality, no matter what they tell you. I bet you are required to buy a certain amount of "inventory," too.

I would advise you NOT to have anything to do with these people, since you have more to loose than to gain.

Good Luck!

Answer 4

you can learn everything you need to know about multi- level marketing at the link below

Answer 5

there are 2 types, one of them with physical products involved and the second type is with no physical involved.

I am more interested with the one without physical products involved. You can login here for more information: http://www.freedom.ws/powercontrol
The company corporate profile is not hidden & make sure u are going to read them to find out the most details information

Answer 6

yes read some tips on it