What is mlm? Is it a scam?

by Klingeberg

Posted: 10 years ago 7 replies

INTERNET MARKETING

Hey all,
This is Dave Klingeberg and I am here to know what is mlm[multi-level marketing] really is? Can anybody help me to know about it!!

Any help would be much appreciated.

thanks

#mlm #scam

dengkane 10 years ago

Google "Multi-level marketing" and you will find a lot of pages about it.

Here is explaining from WikiPedia.org:

Multi-level marketing (MLM) is a marketing strategy in which the sales force is compensated not only for sales they personally generate, but also for the sales of the other salespeople that they recruit. This recruited sales force is referred to as the participant's "downline", and can provide multiple levels of compensation. Other terms used for MLM include pyramid selling, network marketing, and referral marketing.

In my own opinion, if the company sell real products or services and not just sell their recruiting system, then it is legit.
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- tanbanners 10 years ago
  
  Originally Posted by dengkane
  
  if the company sell real products or services and not just sell their recruiting system, then it is legit.
  
  I agree 100%.
  
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  DotComBum 10 years ago
  
  In MLM, you made money from your downline which can go down to several levels, that's why it's called multi-level marketing, just go to YouTube to watch some videos to learn more.
  
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Paul Myers 10 years ago

This would have been a lot more credible question if your signature hadn't linked to an MLM site...
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Kitchen Tool Store 10 years ago

MLM is Multi-level marketing. Selling product and recruiting.
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- SunilTanna 10 years ago
  
  MLM is a business type where the company sells the product to distributors, who then sell to consumers (retail sales). The distributors can also recruit other distributors (downline), and earn an extra commission based the retail sales of their downline.
  
  Many programs promoted as MLM are pyramids, chain letters, or ponzi schemes, or some combination of these. Illegal in most countries, and unsustainable, often based on fraud, and in which most participants are mathematical doomed to fail.
  
  There are also legitimate MLMs. These are generally based around decent products (but a product by itself is not enough) AND the majority of the revenue coming from retail sales, that is sales to people who are not themselves distributors.
  
  On the other and a program which pays simply based on recruiting more people into the scheme is most likely a pyramid scheme. Likewise a program that pays based on you simply depositing money and waiting (and perhaps some minimal required action like logging into a website daily), is most likely an illegal unregistered security (unless registered with the SEC, etc), and could be a ponzi too (is the money coming from some genuine investment or just new members joining?) And there are ponzi/pyramid hybrids too.
  
  Here is a graphic you may find helpful.
  
  Here are some blog posts about the graphic
  
  eBook & Internet Publishing News»Blog Archive » Evaluating Internet Business Opportunities - Infographic
  
  eBook & Internet Publishing News»Blog Archive » I’m not making this stuff up: More on the “Evaluating Internet Business Opportunities - Infographic”
  
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Rory Singh 10 years ago

Good question that you know the answer to. Are you trying to get some SEO traffic?
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