October 17, 2008

What is a mlm?

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October 17, 2008

m h m @ 4:39 pm

Multi Level Marketting.
also knowned as a pyramid.
Suppose to be illegal but if you think about it everything in this world is based on the pyramid system…..including every governments
you have the “president” on top, 2 vice president below, each vice president have 2 secretary, each secretary has 1 receptionist and so on.
the sales people are on the buttom of the ladder, aka pyramid.

October 19, 2008

amerilady @ 6:04 pm

MLM…stands for Multi Level Marketing and no it is not a pyramid. Within such system, you make a certain percentage on your downline. they also tell you to make a list of 200 people to call, which most people never do. I was in a MLM company for two years and did’nt make much, but this was due to my lack of work. I researched companys and their compensation plans and this is what I learned. I would love to know what you think of this. It’s not MLM or Network Marketing.

October 21, 2008

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roxny79 @ 4:15 pm

MLM stands for multi-level marketing. It’s a home based business that is all about networking. Just like you tell people about a movie you liked, you tell people about a product you like to use. When you bring more people into your group and more people buy the product you make money.

See examples on my website

Click to join networkmarketing_success

October 24, 2008

MBA Don @ 6:15 am

MLM - Multi-Level-Marketing

This is basically how it works: Person A signs up, then he gets person B & C to sign up under him. Then when person B or C sells something, person A gets a cut of the sales. The compensation mechanism can change from company to company and from level to level.

There are some legitimate big name companies that are MLMs such as Amway. When executed with good faith, the system can work and can be very benefitial to the participants.

However, MLMs can easily degenerate into a pyramid scheme (or ponzo scheme). What happens is that instead of selling the products, some MLM companies puts a focus on getting more people under you and taking a membership fee. This means that signing up new people now provide the revenue instead of selling of products. What’s the problem you ask? Well, assuming one person signs up 2, and each signs up 2 more people, then the network goes from 2 to 4 to 8, to 16… exponentially. By the time it gets to the 28th level, you’ve already exhausted the population of the US, and by the 32nd level, you’ve exhaused the population of the world.

Lots of bad MLM companies has given the business model a bad name. One that I had personally encountered was Equinox, which got sued by the government and dissolved in 2001.

Also, MLM companies tend to devastate the participant’s social life so that all they have around them are other members. People don’t trust MLM companies unless it already has a good reputation.

I recommend:
1) MLM/network marketing companies are basically a fancy word for being a salesperson. If you have that kind of a personality, it may work out for you. You can take the experience and the relationships into jobs in other fields such as real estate or even corporate job.

2) If you don’t have that type of aggressive salesman personality… you would probably be more harmed by joining a MLM than benefit. Don’t bother.

Just Be!

October 27, 2008

Ryan E @ 12:39 pm

Ismael had the best answer. It’s a business model for direct sales of any product or service. As you recruit new distributors, you have a larger reach for whatever product you happen to be selling. If you can sell 10 widgets a week if you hit it 2 hours a night let’s say you make 1000 a month. However, if you get ten percent off of the sales of your team, and you sponsor 10 people, you’re making the same 1000 a month without doing the work.

Ponzi schemes (pyramids) are similar but the main difference is that it’s only product is the opportunity. i.e. You pay 100 to join the team, but you aren’t selling anything. This is illegal.

MLM also gets confused with Network Marketing. MLM is a type of network marketing but not the other way around. A recent advancement in payout structures is called the 1-up or 2-up sytems (google: Australian 2-up) in which you pass up your first two distributors that you sponsor to your upline. However you only get paid off of your 1st level. While MLMs are generally more stable, you have to sponsor at least 500-1000 people to see any real money($10K + a month) which takes years unless you’re a superstar salesman, whereas with the two up you can earn the same amount in a month or two. I’ve done both and it’s much more difficult to keep people excited when the majority of your team is making $14.50 a month. lol Either way, what you put in is what you get out.

Good luck with your search for a new business and make sure you research the company before you do. If you haven’t decided yet feel free to check out my favorite business I’ve joined. I’m not a superstar but I did make 2,300 my first week. It’s worth a look.

October 28, 2008

pawanbhalla27in @ 9:43 pm

MLM is multi level marketing based on Matcalf Law as stated in Business School by Mr Robert Kyasaki and in this concept company deals with customer directly distributing profit/income to its networkers according to their respective plans instead of middlemen. MLM which deals in fmcg, health, cosmetics, daily need products etc are not pyramid schemes.MLM global turnover is around USD 150 billion.
According to the no 1 MLM is as follows with ranking of

The no 2 MLM according to is as follows with ranking of

The no 1 MLM has success rate and few of them are as follows and and and

You can also go through and and and

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