What is an MLM ?
By ngm_syd
@ngm_syd (1087)
India
10 responses
@mvsrao (4365)
• India
27 Nov 06
In a typical multi-level marketing or
network marketing arrangement,
individuals associate with a parent
company as an independent contractor or
franchisee and are compensated based on
their sales of products or service, as
well as the sales achieved by those they
bring into the business.
This is like many franchise companies
where royalties are paid from the sales
of individual franchise operations to
the franchisor as well as to an area or
region manager.
In a legitimate MLM company, commissions
are earned only on sales of the company's
products or services. No money may be
earned from recruiting alone ("sign-up
fees"). One must analyze the compensation
plan to determine whether participants
are paid from actual sales to customers
and not from money received from new
recruits. If participants are paid from
money received from new recruits, then
the company may be an illegal pyramid or
Ponzi scheme.
see more details here :
http://en.wikipedia.org/wiki/Multi_level_marketing
@smarterbiz (16)
• United States
27 Nov 06
MLM is performance based marketing and sales of numerous types of services. I have personally worked with several people in numerous companies that make 6-7 figures a year in the industry, but it is a business like most other businesses with investments in time and marketing materials up front to hopefully get to a point where you will get enough customers/distributors referring new customers to offset the cost to get your initial customers in the first place. If you need to take money out of an MLM right away, it may not be the best place to dive in head first, unless you've got the formal sales, management and marketing training.
