Con, Pyramid, or Legitimate Multi Level Marketing

Multi level marketing (MLM) is a system for distributing products to consumers that the company supplies. Being part of a good MLM is like being a member of an extended family. The goal of these companies is the larger the network, the more products/services will be sold.

Con is defined as obtaining money or other goods by dishonest means. A pyramid is a multi level (organization) that no matter how many levels, the top is the only part that gets higher (or richer).

I will address both of these objections to the Multi Level Marketing (MLM) companies.

If you are approached to join an MLM, and there is no product or service that is associated with the MLM, it is probably a con. Only companies that offer a product or service should be considered when joining, but this is only one of the items that need your attention.

A pyramid scheme would be a company that continues to gather distributors, who cannot advance above the person that sponsored them into the business, and the original “creators” are the only ones getting rich.

Make sure you check the company’s management. Is it hard to find information? Companies are now required by the Federal Trade Commission (FTC), placing strict regulations on MLM companies to ensure they are not cons, pyramids, or a “Ponzi Scheme”, to report their company’s information so that prospective distributors can make informed decisions about their probability of earning money.

Research the company. Ask questions if you don’t understand. Good up-line support is extremely important to MLM success. Ensure there is good solid training that you can take and use. MLM takes work, and lots of it. It is not a get rich quick journey. Select a reputable company that sells quality items at a competitive price. Are you required to “invest” a large amount of money up front to become a distributor? Will the company buy back unsold inventory? Is the company based on consumer demand? Do you make your money from sign-ups, or the actual selling of product/services? Is there a commission from the sign-up?

MLM is a business that can be an incredible opportunity, if you choose the right company. One rotten apple can spoil the whole bunch, be sure you choose a legitimate MLM opportunity – be able to tell the difference and avoid an MLM con/pyramid. Do not be afraid of an opportunity in network marketing, there are many excellent companies from which to choose.

Fear, or anxiety, of the unknown is caused by others talking, and you listening, to people’s opinions that have no actual basis. This is not just from people talking, but opinions posted on the internet. Doing your own research will decrease this anxiety. I suggest that you research the company that you have the questions about. How long has it been in business? Check the Better Business Bureau.

MLM is a very misunderstood business, but yet is a fast growing industry. There is $100 billion plus worth of products/services distributed through the company’s distributors. Still many people have a negative idea of this industry, even though it is responsible for more new millionaires than any other industry. To become profitable in this industry you must be able to market, prospect, communicate, sale, and generate a continual flow of leads.