MLM stands for Multi-Level Marketing. It is a long standing tried and true business model based on the pyramid structure. Now before you run off screaming, “ACK - pyramid scheme!” you need to understand that nearly all businesses, governments, and the military are built on the pyramid structure. Businesses have a CEO, a few vice presidents, a few more managers and such on down to all the regular employees. There are decades old BBB-member multi-million dollar companies based on the MLM concept. Countries have a “Fearless Leader” who has advisors or department heads etc. on down to the ordinary citizens. Militaries have a Commander in Chief who is often the “Fearless Leader,” followed by officers of lower and lower ranking and finally enlisted or conscripted personnel at the bottom.
The structure is a sound one. It just means there are fewer units at the top than at the bottom. It is also a stable one UNLESS there is no real product or service and unless it depends ONLY on upper levels bringing in more people under them in order to achieve success and make a profit. Simple math will show you that before long you will run out of people on the planet and the pyramid scheme will collapse.
Any successful business, whether it is mom and pop or huge conglomerate, home based or brick and mortar, MLM or whatever, absolutely must have a marketable product or service. If there is no product or no service, and the only way to make money is to recruit others who pay to get into the opportunity, then you have a classic pyramid scheme. Run away.
-> The Good. So what can be GOOD about a business with a marketable product or service that happens to me MLM? First of all, unless you are the person who started the business, there will be someone in your upline who is supposedly more knowledgeable and experienced than you are, and who can give you guidance, tips and pointers to help you succeed. It is in that person’s best interest to do so, because part of their success depends on your success. Also, as begin to do well, there will be people in your downline whom you can train for success. If you take ownership of your business, believe in your product or service, and are cut out for sales, this could work for you.
-> The Bad. The BAD has a lot in common with the GOOD, and that would be that you have an upline and a downline. Both your upline and your downline can be filled with duds. Your upline may not have a whole lot more experience than you do, so they can’t help you much. They could also be lazy and expect to make money from the work you do without doing anything themselves. Your downline could be a lot like your upline, expecting to make money without having to do any work. These people have been reading too much internet hype. Unless you are willing and able to shoulder the whole load, you might want to find another company or product.
-> The Really Ugly. Some companies have a product that is overpriced and not worth what has to be charged in order for your upline, you, and your downline to make any money. Some companies want to charge you money to buy into the opportunity to sell their product. Some companies put an incredible amount of pressure on new prospects by trying to make them feel they are missing out on a once in a lifetime opportunity if they don’t jump at it right now. Some companies make unrealistic demands as to how much product you have to sell, and if you don’t sell that much to others, you have to buy it yourself. Some companies fail, go bankrupt, and start all over again doing the same thing under a different name. Some companies do all of the above.
So, is MLM right for you? Only you can answer that, and it is absolutely necessary that you leave no stone unturned as you do your research before you make your decision.
For a selection of Home Business Ideas carefully chosen for moms who want to make money working from home, visit:
123 I Work From Home 4 Me
123 Home-Based-Business-Works-4-Me
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