Multi-level Marketing: Is MLM Viral Marketing?
By hometyme
@hometyme (288)
United States
4 responses
@visitorinvasion (7709)
• United States
17 May 07
Technically, MLM (multi-level marketing) isn't legal in the states, how so many get by with it, I do not know.
Look up MLM at www.sec.gov
MLM is considered to be ponzi in nature, as it requires members to acquire new members before they can earn anything.
1 person likes this
@hometyme (288)
• United States
18 May 07
I was not aware that MLM was simply illegal in the U.S., since there are some large ones still in existence.
Sincerely, what is it that keeps the Insurance Industry from being considered multi-level marketing, since there are commissions on a number of levels?
I read recently that of the 20 million people in MLM, world-wide, that only .6%, just over one-half of one percent, or some 19,869,000 of the 20,000,000 million would NOT earn enough to pay expenses.
I believe savings accounts would be much better.
1 person likes this
@asahibza (388)
• Canada
17 May 07
May be not. Under Multi-level-marketing, we build a chain of referrals. Everyone in the chain benefits. The longer the chain under a person, more the benefits. Brick over brick.
Under viral marketing, original owner of the product continues to benefit till a product is in circulation. The person in between may get just a one time benefit. The initiator will continue to benefit all the time, the product passes hands.
Multi-level-marketing works like a pyramid. In viral marketing, copyright remains with the owner. Only resale rights are granted to others. In the former, more people tend to possess control.
@abroji (3247)
• India
18 May 07
What you earn in a MLM network is the money of some loosers at the bottom. It is a tactics of generating hope for big money in somebody's mind and eventually trap him to join the scheme. Every time some body wins some amount in a MLM venture some poor people at the bottom is loosing hard earned money, whether it be online or offline. So the money one wins there is the looser's money, and it is ridiculous.
@hometyme (288)
• United States
18 May 07
Thanks for having the courage to say that. I see a number of problems with MLM.
Part of the question was, "What made MLM viral?" I think it was the 'hope' of making a lot of money on other people's efforts that made it viral.
In MLM, this hope seems to be empty for most people.
Viral, in my opinion is where something is highly contagious, for whatever reason.
1 person likes this
@keithstieneke (823)
• Lincoln, Nebraska
18 May 07
I do believe that MLM is still viral marketing as the concept is based on you tell someone and they tell someone else and so on. The problems I see with network marketing or mlm is that most people don't have enough resources to promote it. The days of telling your offline friends about something and having them join and promote it are gone in my opinion. I was successful in Watkins at one time, as well as a company called Beverly Hills International that is no longer around because the company owner took off with the company funds.
