Many people are wondering what MLM is, it means Multi-Level Marketing, they also call it Network Marketing. To make this subject understandable, it is important to start with its definition. So here is a definition of network marketing:
It’s a distribution method used by many different industries that produce, sell products and services. These industries are using independent distributors (not employees) for these goods and services to recommend, promote and sell directly to consumers based on consumer needs, while at the same time give those same consumers the opportunity to offer to be an independent distributor.
MLM Legal or illegal?
At first MLM seems a good and successful formula. In practice, however, many business runs with manipulation, deception and half-truths. Most MLM companies, claim that their system is not a pyramid scheme.Well this sounds like a pyramid system, and maybe you’re wondering if it is legal or not. The purpose of this information is, initially, to help this important question to answer for yourself. As a business owner is good to know whether or not you’ve been involved with a legitimate or an illegal business.
A pyramid scheme is illegal only if you pay a deposit, for which no return can be expected in any form. However, there are too many ways to bend a pyramid shape into a legitimate MLM, but with all the content of a pyramid scheme.
How to start with MLM
Start with research what kind of product you want to sell, make sure if it is interesting for the market. If you can not sell the product, you won’t earn anything. Make some advertising and marketing online. Be consistent, be active in your OWN business. Know something about marketing, decide if you want to invest your money and time into that business
Can I earn with MLM
This depends on every product. Some MLM products are very succesful, but there are also MLM products that’s you will never earn money. In general, the more people asked to participate, the more it will resemble a pyramid scheme and the more likely it will be a no successful formula.
In addition, the number of layers in the hierarchy is also an indication of the possibility of success. The more layers, the more money is stuck in these layers and the less likely that you are going to sell a product at a competitive price.
If you still want to join a MLM formula, think twice, whether the product is something that you’re likes. Selling products is always through your own social network. If you know that there is no interest in such products, don’t start with it. Especially when the products have no added value in comparison to products what you can buy in the shops.
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