Multi-level marketing is a fancy name currently being used by some companies in an effort to do two things.The first objective is to move products from their warehouses, and thus increase their sales volume. The second objective is to recruit "an army" of commission-only sales people. Make no mistake about it! After you've stripped all
hoopla and falderal away from these "super money-making opportunities", bottom line remains same - you make money from commissions allowed from sale of products.
Generally speaking, very few people have any "real" sales experience, and thus, if offered opportunity to take a job as a commission-only sales person, they'd run from it like devil.
At same time, most commission-only sales positions are "direct selling" opportunities. And, definition of direct selling begins with an explanation of what a door-to-door sales person does.
Don't get me wrong... A lot of personal fortunes have been amassed by commission-only sales people... For sure, when you attempt to sell by mail, you're almost always involved in commission selling, and direct selling.
What I'm saying is that most people are "duped" into joining multi-level marketing programs without understanding that it is commission sales and at least a form of door-to-door selling.
Worse than "duping you into joining their programs..." Almost all multi-level marketing companies subtly encourage you to break law, and run risk of huge monetary fines, long terms in prison, or both!
This is done by at least, "inferring" that if you will find a number of people to duplicate what you're doing, and in turn encourage each new enrollee to keep system going, everybody will get rich!
No so, my friend! That's a "Ponzi Scheme", and if you don't really understand what a Ponzi Scheme is - allow me a moment to explain: Such a scheme is any kind of money-making opportunity where you get paid by recruiting, enlisting or soliciting other people to follow your lead and continue a chain of events. In other words, you'll be paid a commission from people you recruit -1; form people they recruit -2; from people they recruit-3; and on into infinity.
This is "secret" impact that most multi-level marketing companies use to induce you to buy into their program. Such practices are illegal, and subject to federal laws which could destroy you. So called, bi-level marketing plans are same thing, as are chain letters, and people-helping people clubs. They're all based upon Ponzi Scheme. If you have any doubts, take your money-making opportunity and sit down with your local postmaster and discuss it's legality.
