any ideas on how multi-level marketing works?

Question

have read about it, is the same as pyramid marketing?

Answer 1

Good day!
You're on the right path on multi-level marketing (MLM). MLM is also called networking.
What happens is you sell products to Customer A, who in turns sells the products to other, making them Customer A1 and so on, eventually recruiting them to sell the same products as well. You then have a percentage of their profits just as they'll get a portion of their recruitees earnings.

Taken in context, you not only earn profits from your baseline seling, but from those below the pyramid. But nowadays, some malicious individuals taint the ideal concept by running scams. So, if ever, you'd be in similar situation, examine the company before accepting the membership offer. It is quite a gamble, but if done right, will have very productive results.

Answer 2

most companies are pyramids. a pyramid is not a bad thing, but a ponzi scheme, or pyramid scheme, is. if you are a good recruiter and salesperson, and get in on a company early enough, mlm can be lucrative, albeit difficult. the people at the top make most of the money as the business grows to a point where the people at the bottom can't recruit as many people as it takes to make the big money, so they typically get frustrated, move on, then the people at the top likely will make less, get frustrated, then move on. that's what happened with amway, so it was cleverly repackaged as quixtar.

Answer 3

yes they are essentially the same deal. here is a article about it

http://en.wikipedia.org/wiki/Multi-level_marketing

Answer 4

Play it safe and avoid all of them.