English Deutsch Français Italiano Español Português 繁體中文 Bahasa Indonesia Tiếng Việt ภาษาไทย
All categories

4 answers

Multi-level marketing (MLM) (also called network marketing or NM) is a business model that combines direct marketing with franchising.

In a typical multi-level marketing or network marketing arrangement, individuals associate with a parent company as an independent contractor or franchisee and are compensated based on their sales of products or service, as well as the sales achieved by those they bring into the business. This is like many franchise companies where +royalties are paid from the sales of individual franchise operations to the franchisor as well as to an area or region manager.

In a legitimate MLM company, commissions are earned only on sales of the company's products or services. No money may be earned from recruiting alone ("sign-up fees"). One must analyze the compensation plan to determine whether participants are paid from actual sales to customers and not from money received from new recruits. If participants are paid primarily from money received from new recruits, then the company is an illegal pyramid or Ponzi scheme.

Some less legitimate companies produce revenues primarily by attracting new participants with the hope of reward and selling them products or services of dubious value at inflated prices, as opposed to selling products or services consumers would purchase at the given price without regard to the opportunity attached. One must evaluate the products or services and determine if a significant percentage of consumers would continue to purchase them if the participants do not make money from the underlying opportunity. If the products or services have dubious value or if the participants must purchase excessive quantities without reasonable intent to use or resell said items, then the company is likely a thinly veiled illegal pyramid scheme.

Multi-level marketing has a recognized image problem due to the fact that it is often difficult to distinguish legitimate MLMs from illegal scams such as pyramid or Ponzi schemes. MLM businesses operate legitimately in the United States in all 50 states and in more than 100 other countries, and new businesses may use terms like "affiliate marketing" or "home-based business franchising". However, many pyramid schemes try to present themselves as legitimate MLM businesses

2007-04-11 12:18:59 · answer #1 · answered by vakayil k 7 · 1 0

MLM or Network Marketing or Direct Sales is a form of distribution that people are paid for referring customers often over several levels. I have had success in network marketing, you can check out my website:
http://prestage.freelife.com

2007-04-11 01:03:52 · answer #2 · answered by schneeballe 2 · 0 0

ya... u can make alot of $$$$$... but b4 doing MLM, u needs a huge circle of networking, talk to ppl, share w ppl.. approve to ppl.. sincere w ur services or pdts.. then u will success..

2007-04-12 12:26:30 · answer #3 · answered by Summerscenz 1 · 0 0

Hey sweety, It means Multy Level Marketing, basically the way it was explained to me is, you get one person to donate money to you then that person gets someone to donate money to them and that person gets them to donate money to them and so on.....Its a scam to me because you're not really selling anything or recieving any product you are just getting people to donate money to you and so on.......I think its ascam but some people have been successful, Some claim you can do it from your home.......

2007-04-11 00:54:57 · answer #4 · answered by KATRINA A 3 · 0 0

fedest.com, questions and answers