Sunday

Putting the MLM Puzzle Together


What IS MLM?

Many people hear the word MLM and instantly think one of these things...

  • SCAM
  • Pyramid Scheme
  • I got burned in one of those
  • I know someone who got burned in one of those

I'd like to elaborate a bit on the true meaning of MLM.  It stands for Multi Level Marketing, meaning that one can have a team on multiple levels.

This is often where people think 'pyramid' as they think that the sponsor is at the top and that they are  making oodles of money off of everyone beneath them.

In legit companies, you can actually bypass your sponsor and achieve a higher title and a higher income!  This completely eliminates the 'pyramid factor'.  Yes, there are those pyramids out there, buyer beware, so while searching for an opportunity do your due diligence.  Any person or company promising easy money via a 'no work'  fully automated funnel system, well, be careful...

Here are some examples of MLM companies I'm sure you've heard of...

Avon
Mary Kay
Tupperware

{{gasp}} yes, it is TRUE, they are MLM companies...  Often when I tell people this they are surprised as they never realized that these HUGE companies are formatted upon an MLM platform!  This eases their fears... Sometimes prospects need a little gentle education to coax them out of the false thoughts on MLM.

The difference between a pyramid scheme and a legit MLM is a  that a legit company offers its distributors a way to earn a decent income primarily from SELLING with an option to recruit as well.  

With MLM 'scams' and 'pyramid schemes' the sole way to earn is to recruit, recruit, recruit with no tangible item to actually 'sell'.   Many of them are formatted with a single product on auto ship, no way to actually 'buy' product and often they don't even allow a way to SELL the product.  Only recruit, get people to buy as customers, and get them to get people to buy as customers with no actual way to earn money 'selling' via direct sales methods.

A great book on the industry that sheds light on all of this is Network Marketing for Dummies, it explains the Direct Sales, Network Marketing, MLM industry to a T and debunks many of the myths associated with them.  It also demystifies comp plans and so, so much more!

Now in order to put your puzzle piece over where it belongs, you have to take the steps from where it is to where you want to put it...

Alethea Anderson
Puzzled!? NO!

1 comment:

  1. Anonymous3:28 PM

    MLM and Pyramid schemes are very different , a legitimate and legal network marketing company will always have a viable product or service to promote.
    Insightful documentary about internet business''The YES Movie''made by Louis Lautman
    www.TheYESmovie.com

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