Whether MLM are beneficial to members

@lak2jai (807)
India
April 6, 2009 10:16pm CST
Whether MLM business is beneficial to members or it is benefit to only owners ? Most of the MLM are vanishing after sometime what is the reason behind that ?
2 people like this
4 responses
@corrisa (24)
• United States
15 Apr 09
There's a lot of mis-information on what MLM really is. It refers to how you're paid - on multiple levels. Just like the CEO gets paid on the efforts of those below them. Your boss gets paid on your efforts and all those below him. In MLM it's no different, however, unlike most corporations, the person at the bottom in MLM can make as much as the person on top. MLM or network markting is just a distribution model and like all businesses, the goal is to make money. And just like any regular business, those that have been open less than 24 months have a higher chance of going under than a business that's been around longer than that. Shaklee and Amway have been around over 50+ years and Avon's been around over 100 hundred years, so I'm not sure what vanishing MLM's you're referring to...perhaps the start-ups I mentioned earlier? Hope that helped someone.
@lak2jai (807)
• India
15 Apr 09
Thanks for your comments. MLM means multilevel level marketing
1 person likes this
@rosdimy (3936)
• Malaysia
7 Apr 09
I am not fond of Multi Level Marketing schmes becase of the need to recruit downlines in order to have a good income. Several MLM companies resurface once in a while, and several changed their business model. The fact remains that there is a limit to expansion. If we draw the scheme we can see the general shape of a pyramid. So the person at the top gets the most. Those who come in later become disappointed with the earnings since people around them have joined the same scheme. So they move on to greener pastures. There are owners who start a different MLM company when the income has fallen below a certain level. Another factor going against MLM is the price structure. Since there are many levels which need to be paid the prices of products have to be increased. Many almost similar items are cheaper at the local supermarket. all the best, rosdimy
1 person likes this
@lak2jai (807)
• India
15 Apr 09
Thanks for your comments and descriptive and detailed comment
1 person likes this
@leoliu39 (540)
• China
7 Apr 09
sorry for MLM, i am new here, MLM means?hope you can do this way next time:MLM(....),sorry again!
1 person likes this
@lak2jai (807)
• India
15 Apr 09
Thanks for your comments. MLM means multi level marketing. Hope now you could understand about the concept
1 person likes this
@CJscott (4184)
• Canada
15 May 09
It depends on the business model. If your business model is recruit, recruit, recruit. You can't buy the product for a reasonable price with out joining. Or whatever, then it is more beneficial to the Owner. But there are many that are Mutually beneficial, and even pay the distributors more. You have to look for the "5 pillars" 1-Company Management experience with integrity 2-Timing in the Company, Timing in the Industry 3-A Remarkable Product that is Value priced 4-A Compensation Plan that pays the PART timer 5-A Proven duplicate able system I can provide any one, with a detailed audio explaining all of these, or you can message me directly. Cheers.