What is MLM Stand for?

@smsasad (244)
Bangladesh
January 6, 2007 10:23pm CST
I wanna know about MLM. Can you breif me.
4 responses
@inked4life (4227)
• United States
7 Jan 07
MLM stands for multi level marketing..sometimes also known as ponzi schemes. usually involves paying money several levels deep and trying to recruit people to do the same...generally scams and the only people that usually make any money are the ones at the top of the MLM pyramid
• United States
7 Jan 07
I won't say that I totally disagee with your response, but not all mlm's are ponzi's or scams. I make a rather nice living in an mlm. I sell domain names/web sites and I get $1 per month for everyone that I sell and they renew (the person pays $10 a month for the hosting and website/e-mail addresses and I get $1 of that). It's a mlm because I make this through 5 levels. Some are just as you say they are (trust me I was scammed plenty till I found this one). But there are some legit companies out there. My best advise is to check to see how long the company has been in business. Mine has been in business for 5 years. Anything less than 2 years and I shy away from them. But I do feel that placing them all in the same catagory is a bit unfair.
• United States
7 Jan 07
I stand corrected...congrats on finding a good one. I've been burned a number of times myself
@sweetie88 (4560)
• Pakistan
18 Mar 07
Multi-level marketing (MLM), sometimes called Network Marketing (NM) is a business model which utilizes a combination of Direct Marketing and Franchising. Typically, individuals become associated with a parent company in an independent contractor relationship. Sellers are compensated based on their sales of a product or service, as well as the sales of those they bring into the business. Multi-level marketing has a recognized image problem because of difficulties in making a clear distinction between legitimate network marketing and illegal pyramid schemes or Ponzi schemes.. Nonetheless, many NM/MLM businesses operate legitimately in all fifty U.S. states and more than 100 foreign countries. Because of this image problem many new NM/MLM businesses do not use the words "multi-level marketing" or "network marketing" and instead use terms like "affiliate marketing," "home-based business franchising," etc. In a legitimate MLM company, commissions are only earned on the sale of products or services to the end consumer who, in many cases, is also a distributor. No money may be earned on a "sign up fee" or for recruiting alone. Critics contend that some companies produce revenue primarily by attracting new participants, as opposed to selling products. Analysis of the compensation plan is often required to determine whether participants are paid based on actual sales of products to customers versus new recruit bonuses and sales of business support materials. A major shift in MLM occurred during the 1980s when companies began allowing their members to focus solely on marketing rather than handling the tasks of stocking/distributing products as well as taking care of commission payments to their sales organizations. Today, most MLM companies act as fulfillment companies by taking orders, shipping products, calculating and paying commissions, etc. Often, victims of fraudulent or illegal MLM schemes are required to purchase expensive inventories of products. These schemes are often quick to collapse, when the merchandise cannot be resold, leaving all but those at the top of the pyramid with sometimes staggering financial losses. I hope that this information is enough for u.
@vinu949 (640)
• India
7 Jan 07
it stand for Multi Level Marketing
@hiitssomu (657)
• United States
7 Jan 07
not sure if you are looking for this: MLM stands for Multi-level Marketing. it is also know as Network Marketing. this is a business model which combines direct marketing to franchising. In MLM individuals associates with parent company as an independent contractor or franchisee based on their sales of products or services. the franchised or conntractors pays a fixed amount of their profit to parent company. the product, proce everything are regulated by the parent company. this is also caled as pyramid pay structure. Now-a-days it become very famous. The best example of company who are following this MLM are McDonald, Walmart etc. Mcdonald is big and most successful company and the founder of Mcdonald is very famous for this process to adopt. the online version of the MLM called online mlm, now a days this business is also very famous. More info http://www.mlminsider.com