|
|
|
MLM
|
|
|
 |
|
|
MLM is different from a pyramid scheme in several ways. First, multi-level marketing is legal. Earning commissions off of the sales of your downline is perfectly legal. On paper, any multi-level marketing company looks like a pyramid.
MLM: Legitimate, Unlike an Illegal Pyramid Scheme
However, an MLM sells actual products. It is not driven solely by recruiting more salespeople into the company and hardly ever (or never) by selling products. In these legal multi-level companies, participants always get something for their investments.
Salespeople make profits and those who purchase products receive the products in exchange for their money. They have a real monetary value. A lot of information products, like books and software, are sold on the Internet in MLMs. The reason they are so common is because they cost distributors very little to produce, but the information is valuable so there is a high profit margin on it.
With illegal pyramids, the emphasis is on recruiting more people into the company. You get paid only when you recruit people. Often, there are no products being sold.
You supposedly earn money on your investment from the people joining below you. However, sooner or later the pyramid will collapse. Nobody can recruit forever--there are not enough people in the world, and even if everybody joined, there is only a finite number of people on the planet.
Register Now. It's Free!
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
© 2004 Cosmodex. All Rights Reserved. Patent Pending Process.
|
| |
|
Partner Sites:
|
|
|
|
|
|
|
