Multilevel Marketing: Down and Dirty
Anyone would say that “multilevel marketing” is not a good place to put your money into. That’s probably because along with its popularity, a bad connotation surrounds it. There are some whose experience didn’t quite meet their expectations, leading them to think that they’ve been scammed. Although the whole thing is legal, most people would rather say no to mlm marketing than be a part of something they might later regret, like being in a pyramid scam, for instance.
Usually, these two are thought of as the same thing, but they’re definitely not. Multilevel marketing is a legitimate social business model which aims to make the end consumers pay a lesser amount since labor and material costs – and essentially, the middlemen – are excluded from the whole deal. On the other hand, pyramid schemes are illegal and would probably land you a lawsuit in the end. These scams only want you to invest your money in them so that you would later get “rewards” for doing so, even though what you’re actually doing is just transferring money from the “upline” to the “downline.”
If it’s Too Good to be True…
If it’s too good to be true, then it’s more than likely that it is a pyramid scam. Just like a wolf in sheep’s clothing, pyramiding schemes mask themselves as legitimate mlm marketing businesses. Pyramiding schemes uses the same techniques and also the same processes in building a network.
The common denominator that these two systems have is that both will sell a product and come up with a marketing plan for it. There are two sides for this: it’s either you will be sponsored by the “upline”, or you will sponsor a “downline.” You would know that you are in a legal mlm marketing business when your “downline” commissions are just the icing on the cake, since most of your profits would really come from your own sales efforts.
Entering the Market
Multilevel marketing is a relatively easy business to get into, sometimes for investments as low as $29, which is in no way saying that it’s an easy business to thrive in. On the plus side of the equation, it is a very flexible business environment. You can stay at home all day in your jammies and still make a decent enough living. Formal education isn’t even necessary, but a bit of techno savvy does help.
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