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    Query about the underlying factors of Multi Level Marketing

    Interested in finding out about multilevel marketing? Searching for information about the benefits, rewards and risks in this? Here, experts shall provide you with advice about the underlying factors of multi level marketing.

    Long time back I have been hearing about Multi Level Marketing, also known as Money Chain. However the name is not legal and this system has attained popularity again in the present time. Once the system was much trending and now it seems to come back, the reason why it went down still matters.
    I have heard people got money from this and at the same time few have ended up under the law. I would like to hear your all opinions about the setup. Can you tell me about the beneficial or rewarding side and risks involved in this?
  • Answers

    4 Answers found.
  • MLM marketing is horribly risky. Anyone tells you otherwise is just trying to push you into risk. Do note that there are some of the network marketing chains like Amway, Awon and few others. But those are closed loop MLM. The closed loop MLM system sell the product and make people gain the referral for earning share. In case of open loop MLM, you are selling and buying products of diminishing or low value. And here the chance of earning is higher if you gain more referrals under you. However MLM of open loop is considered as illegal. And it is not recommended to get into this type of marketing. If you are extrovert and know your way around people, go with direct sales or the distributorship or affiliate marketing. MLM marketing even with closed loop like Amway can be risky. I don't recommend MLM to the introvert people. It earns no real skills and no real money that easily. So one should be very careful about it.

  • Multi level Marketing is a risky venture where in things so smoothly until people get a wind of the scheme and everyone is under the scrutiny of the law.If the scheme is focussing more on selling the prodcut to the consumers rather than increasing the new memberships or sub memberships, then the scehme is legal.Here to focus is on genuine sales and not money generated from new memberships.
    If it focuses more and more on recruiting new members, then it's a pyramid scheme, where in you enter at the base and pay money initially that goes up the ladder to your friend who recruited you and then in turn to his recruiter and this pyramid goes up in many layers.Here the focus is not on sales but the revenue that flows in with every new recruitment.

    Common examples are microwave grade food storage boxes,health supplements,protein powders, cosmetics etc. Why are such schemes risk, it's simply because money doesn't grow on trees and if the scheme is too good to be true, then it is a scam. Just imagine, how can one get paid just for introducing someone. With or without our knowledge we become part of an illegal money making or money circulation scheme where in we will be on the wrong side of the law.
    The upside is a few quick bucks, the downside is huge, risking facing the wrath of the law. All these MLM schemes tries to focus on your list of contacts and how good you are in networking. Why not use this legally in any product sales division.

  • The legitimacy of a multi-level marketing company is decided by its sales strategy. If products are sold primarily to consumers then the company is a legitimate multilevel marketing company. If the sales are by recruiting new members by old members to sell the products to the new members, it is not legal. According to available data, there are 90 million members worldwide. But relatively few earn meaningful income from their efforts. This reflects the characteristics of a pyramid scheme.

    always confident

  • Multi level marketing (MLM) is a specially designed sales network in which individual to individual rapport and relations are created with a chain pattern diverging downwards from old members to new ones. The beauty of this system is old members get more and more commission from the transactions carried out by new members under the diverging chain starting from them.

    In theory it is a cascading type of effect and in suitable situations fetch handsome money to the old member. In practice many chains are disconnected as no new members join the chain or even some of them lose money given at the time of joining in lieu of certain items to be sold to prospective buyers.

    In essence MLM is not the cup of tea for everyone. Only a few can get along with it and that also after many hassles.

    Simple and gullible people should avoid such marketing chains.

    Knowledge is power.

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