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Multi-level marketing
Multi-level marketing (MLM) is a marketing strategy in which the sales force is compensated not only for sales they personally generate, but also for the sales of others they recruit, creating a downline of distributors and a hierarchy of multiple levels of compensation. Some people use "direct selling" as a name for MLM, although MLM is only one type of direct selling, which started centuries ago with peddling.
MLM companies
MLM companies have been a frequent subject of criticism as well as the target of lawsuits. Criticism has focused on their similarity to illegal pyramid schemes, price-fixing of products, high initial start-up costs, emphasis on recruitment of lower-tiered salespeople over actual sales, encouraging if not requiring salespeople to purchase and use the company's products, potential exploitation of personal relationships which are used as new sales and recruiting targets, complex and sometimes exaggerated compensation schemes, and cult-like techniques which some groups use to enhance their members' enthusiasm and devotion.
MLM compensation plans
Compensation plans in network marketing / MLM vary from one company to the next. It is up to you to ask questions when evaluating any company’s pay plan. Some are front end loaded or they maybe back end loaded.
Making Money with MLM
In every MLM program, there are inevitably those who profit more than others. These elite few are also those most often identified to such programs. They drive fancy cars, live in large mansions, and cash in massive commission checks every month. They are also the ones most often called upon to speak at the MLM gatherings. In contrast, there are also those who never seem to get anywhere with their programs.
The Benefits of Multilevel Marketing
Multilevel marketing is picking up a lot of steam. This is due to the large amount of people online that are hyping multilevel marketing and all of the profits that go along with it. And if you are interested in this business, you should not have any problem finding information online to help you get started. The bottom line is that multilevel marketing makes you money too. As soon as a decent amount of people started to cash in on it, the number of interested parties began to increase.
