What is MLM and Can It Be a Valid Home Based Business?
MLM, or multi-level marketing, has come under some criticisms oflate, mostly due to a misunderstanding of what MLM is and isn't.Many people believe that an MLM is no different than a pyramidscheme, but in fact, it is a legitimate business model. In fact,it can be a very lucrative business for any home based businessentrepreneur.MLM is a business model involving the direct selling of productsor services through the personal recommendation or endorsementof independent represent...
...atives. If you are the representative,you receive a commission on the sale for giving therecommendation or endorsement. Most products that use MLM arenot advertised in the mainstream media or in stores.MLM goes on to create an upline and a downline throughrecruiting. As an independent representative, you recruit otherindependent representatives to directly sell those products andservices (your downline). You receive a commission on theirsales. Your upline includes your recruiter, the person whorecruited him/her, and so on. They earn a commission on yoursales. In fact, it is not so different from multi-tier affiliateprograms.However, this structure is how most people confuse MLM with apyramid scheme. With MLM, the products or services sold have aproportionate value to the amount invested. In a pyramid schemethat value is highly disproportionate or the scheme justinvolves the basic transfer of funds up the pyramid. Forinstance, the most classic pyramid scheme is the one where youget a letter telling you to mail money to the person at the topof the list, cross it off, and put your name at the bottom. Thenyou mail out letters to so many people and eventually reap therewards when your name gets to the top of the list, which itnever does. It is important to note pyramid schemes that are disguised asMLM programs, as there are some people out there trying to takeadvantage of those wanting to get involved in MLM programs. Ifyou are looking to get involved in an MLM program, then makesure that your investment is proportionate to the product orservice you will be selling. Remember, pyramid schemes areillegal, and you participate at your own risk. Read the rest of the article here: What is MLMand Can It Be a Valid Home Based Business?.Download the Home Based Business Manual (Free $97 Value!) andreceive valuable tips, strategies and techniques designed togrow a very successful Home Based Business.Copyright © Charles Fuchs is an established Six Figure Incomeearner and one of the top online marketer's. He specializes inshowing people the Best Home Based Business and the Best MLM onthe internet.I grant permission to publish this article, electronically or inprint, as long as the bylines are included, with a live link,and the article is not changed in any way.
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