|
Is Multi-Level Marketing (MLM) Mention 'MLM' and often it will meet with a standard statement “Isn't that a Pyramid Scheme”. Even though the business model has been around for over 50 years it still has its naysayers. The real problem is not with the model itself but that there is no real regulation on the industry and while you can have hundreds of very legitimate businesses in MLM there are some that are not as legitimate. But this notion that Multi-Level Marketing is some form of illegal pyramid really comes from a knee jerk reaction to some not so reputable companies where people have lost money. When you really look at the compensation structure of legitimate MLM companies you will see that they were designed around solid business compensation structures that many big corporation use even to this day. The first true Multi-Level Marketing compensation plan evolved back in 1945 and was built on a reward for growth concept which gives incentive for people to sell more. In the end this is a win-win situation and helps the company grow while rewarding those who put in the effort Take a look at any big company that employs a sales force and what you will discover is that each sales person earns a set commission based on what they sell. Simple enough. Often a big company will also give bonuses based on volume over a certain quota so that their sales force can strive for even more. Additionally they will also have sales managers who are in charge of sales people who are given a commission based on the volume of their entire group. This is the same exact structure of most MLM companys. There's a commission earned on products or services sold. There are bonuses for volume and each distributor has the ability to earn group commissions or bonuses on the individual sales distributors they have directly working under them. Its not more complicated than that. No pyramid, just business. Not all compensation plans are created equal in big businesses nor are they created equal in network marketing. Before joining any MLM company you should always do your homework. It should be a solid company, with good management and good funding and a compensation plan that rewards you. If the fundamentals are sound and the product or service is legitimate, MLM can be a very lucrative and rewarding business. From The Inside,
|
