Ooooh! We are touching a hot subject today that I love to talk about: multi level marketing definition. Many people, when they hear those words, they think: pyramid schemes, illegal, scams, etc. Yet, this makes me laugh so much because many of these thoughts are misconceptions. I’m going to clear those myths today and show you nice explanations around the multi level marketing definition. Here we go…
What is multi level marketing?
Multi level marketing definition: A system made so the products are moved from a network of distributors to the consumer. Being a distributor, you make money by selling the product to any consumers and you earn money as well when you convert a consumer into a distributor (recruiting). Every new distributors you enroll, and every of them enrolling new ones form your downline. This is a word from the MLM vocabulary. But yes, when you take a look at the whole thing, this becomes a pyramid. Every time products are bought and every time people are recruited in your “downline”, you receive commissions from all the levels.
You just admitted that it’s all about a pyramid scheme!
Absolutely! And it is! Now, this is not because the MLM business model is a pyramid that it is a scam or illegal. You see, this is where I find funny all those pyramid misconceptions that I have heard through the years. Think about that for a moment. Where do you work now? Do you work for a small enterprise or a large corporation? Unless you are jobless, guess what folks, you are involved in pyramid schemes. The capitalist business model is just built this way…
For an example just take a pen and a paper and think about the people involved in a corporation. Draw a circle for the owner. Now, draw two other circles underneath him and write “president” and “vice president”. Write few circles under them and now you have the corporate management positions. A few circles under them and you have the store managers. Then you have the sale reps, etc. All of these employees at the bottom do the dirty work so the level above them gets paid, so the level above that level get paid, and so on, until the top. People don’t realize that unless we are our own rep, everyone works in a pyramid!
Now on the internet, what you have to understand is that in order to be legal, multi level marketing companies have to move a product. Remember the multi level marketing definition! So when you base your income solely on recruiting people and that those people don’t have any products to use, we can talk about illegal pyramid schemes. Unfortunately, many of these scams exist on the net.
But can you make money with a multi level marketing business?
Yes! Of course! But to really become wealthy in this industry, you have to expose your business to the entire planet. Not just in front of your friends and your family. Yet, so many multi level marketers use old fashion marketing, use words of mouths marketing. Well, that is not bad. Words of mouth can be really viral. But in how many time do you want your business to explode? In 4 years? What about some months instead? Create your own website and start doing online marketing. Many MLM opportunities can permit you to not stock your products so you don’t have to ship them. Wouldn’t be great to profit of that and having phone calls from all around the world?