While there is no doubt to the popularity of Multi Level Marketing, doubts should be cast on the way most people view this kind of business. Some people look at Multi Level Marketing as get rich scams. Some of them consider this as a deceitful way of earning money by using other people.
There are a lot of misconceptions about Multi Level Marketing and one of those is the stigma of MLM business as a pyramid scam. People could not however be faulted for attaching this stigma to Multi Level Marketing because most of those who engage in Multi Level Marketing are ill informed and most often use this business scheme in another way.
Multi Level Marketing is really a valid way of doing business which takes advantage of the circle of acquaintances that a person has. In Multi Level Marketing, a person is able to purchase products or services at a lower cost. He gets income by selling these products and by recruiting other people who will also sell the same products.
It becomes multi level because the original purchaser now develops a series of sales network referred to as his downline. When these people are able to sell products and services, the original purchaser gets a commission out of their sales as well.
What makes the business of Multi Level Marketing kind of shady is when the upline or the original purchase gets commission just by recruiting his downlines and no goods or services are being sold or moved. This is not even marketing because no products are being marketed so it is really erroneous to relate this to Multi Level Marketing.
With this in mind, it should be noted that Multi Level Marketing is actually different from the pyramid scheme although most people still associate the two. A person engage in Multi Level marketing in reality purchases the products at a lower price because they are bought on a wholesale basis.
To get more income, the original purchaser has an option to sell his products on a retail basis. He then recruits people to do the selling for him and he gets a commission out of their sales. If such products are not sold, then no one gets an income
What is good about Multi Level marketing is that you can transfer and do business from one area to another without losing the commissions you have earned from a sales network that has been established in a certain area. A person who is able to build a good sales network who will move the products for him will get the most income.
It is thus important that a person who is into Multi Level Marketing would be able to get good people on his team so he will have quality downlines who can also build their own quality teams. The secret really is in marketing the products not to strangers but to family, friends and colleagues.
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