MLM Network Marketing

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 MLM Network Marketing

This is an explanation of what network marketing is, what it isn’t, and how it works.

MLM Network Marketing must not to be confused with pyramid selling which is an illegal form of selling which originates from the United States of America way back in the sixties.  Thankfully the Direct Selling Association was set up in the 1970’s to outlaw all the pyramid schemes.

What Is a Pyramid Scheme? It comes in different formats and no matter which format it appears it is ILLEGAL

1.  People at the top of the pyramid sell products to people below at a higher price than they paid for them.  Prices continue to rise down the pyramid until the prices are so high for the people at the bottom that they are unable to sell them.  This means that many people are left with high levels of stock that they can’t sell.  In other words the products can only be sold at a loss.

2.  The people at the top of the pyramid make all the money.

3.  People get paid for signing others into the business without any products moving.

4.  Many times there are no physical products involved, it can just be information that moves around.

Unfortunately, reputable MLM Network Marketing Companies were and still are caught up under the same umbrella, with the automatic assumption of many people being that network marketing and pyramid selling are one and the same thing.  Nothing could be further from the truth.

So What Is MLM Network Marketing?

1.  First of all imagine the shape of the pyramid to be upside down with the point at the bottom.

2. Unlike pyramid selling where the person at the top earns all the money, network marketing is a level playing field where effort is rewarded equally.  So, a distibutor below another distributor can earn a higher income if they have built a larger business.

3.  Products are sold at the same price no matter who sells them and at what level they are in the business.

4.  Very high income opportunities exist because the network marketing company does not carry the same levels of overheads as a traditional company does.  Around 50% of the companies sales are paid out into the distributor network in bonuses.  This becomes a far cry from the job world where one is constantly trading time for money.  And guess what? As one climbs up the corportate ladder the income increases BUT so do stress levels, and quality of life significantly decreases.

5.  It is an opportunity for the ordinary man and woman in the street to get involved for very little investment and change their lives.

6.  There have been more millionaires created worldwide through MLM Network Marketing than any other business.  In fact, there is more money made through network marketing than the film and music industries put together.

It’s important to note that the pyramid shape is the strongest there is.  All organisations are shaped like a pyramid with the CEO at the top followed by the board of directors, then the management, supervision and finally the basic workforce, with the higher incomes at the top and ever reducing down to the bottom.

There’s nothing wrong with the shape of the pyramid it’s basically down to how it’s handled.

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