Multi-Level Marketing Resources

A pyramid scheme is when people are buying a product to get into the "deal" and there is no intention of making a market for it. Pyramid schemes usually advertise as "get rich schemes" and other statements such as

From my experience with pyramid schemes, this is how I would describe the process. An example of a pyramid scheme would be: I buy a product and sell it to you for $5, you in turn resell the product to someone for $10 and down the line the product goes. Each additional person continues to raise the price. In the end, let us say that Number 10 bought the product for $100 and is not satisfied, he complains to Number 8 and up the ladder all the way to Number 1. Number 1 then tells Number 10 that the product wasn't meant for use but for selling! Here lies the pyramid scheme.

The distributor sells and the purchaser buys just to get into the deal. There is no intention to continually market the product. The distributor sells it one time.

A pyramid scheme is a not a direct selling plan. MLM (multi-level marketing) is direct selling which involves a product. True multi-level marketing involves selling a product that is worthwhile both to the distributor and to the purchaser. In addition, MLM involves a network of people (distributors) working in your group (also referred to as down line). The more people in your down line the more profit you make. You make a certain percentage of your down line distributor's sales.

MLM success is not a get rich quick scheme as so many advertisements claim. The success of your MLM business depends on your patience, persistence, and the real world market demand. However, with due diligence and belief in your product you can be successful in a MLM business.

Although this article is a few years old, the scams are still around. Be careful when selecting a MLM business and watch carefully for pyramid schemes.

For a name you can trust in the MLM business go to Shaklee

All too often people are convinced into joining a multi-level marketing company based on hype and the get rich themes they promote. There are many MLM companies advertised on the internet that promote themselves as a true multi-level marketing company but in reality, they are some illegal pyramid scheme. These pyramid schemes usually offer no real or worthy product. Obviously, when you read the fine print in these pyramid schemes, which are usually taken for MLM opportunities, you would not endorse the company or product if any.

True multi-level marketing with the right company that promotes a viable product, is marketable, and has a demand can be financially lucrative. MLM companies afford you the opportunity to work full or part-time. In addition, you become a small business owner and you control how much effort you put into your business. Additionally, you have the power to run and promote your business as you see fit to suit your lifestyle.

The multi-level marketing concept is a simple one. MLM companies convert their current customers into the sale force. MLM companies rely on word of mouth to do their marketing. The MLM company has very little expensive as their customers are their advertisement thus no sales staff on payroll is required. It is a win-win situation for all. The dollars saved by the MLM company has very little overhead, therefore those savings are passed to the MLM distributor as commissions.

Most MLM companies will require a small investment. When selecting your MLM company, select the company which has products that you truly endorse. It is quite hard to convince other people to join your team if you do not believe in you product or company.

Below are a few tips when selecting an MLM company:

1. As mentioned above, choose a product that you would purchase for yourself. Are they products you believe in?

2. Seek out a MLM company that is of high quality, socially responsible and has a good reputation.

3. Does the MLM Company offer viable, worthwhile products? What is the demand in today's society for the product? Recently, there has been a real trend in non-toxic and chemical free, organic food, household cleaners, etc. This is a growing market and the demand is expanding worldwide.

4. What is the compensation plan? Avoid companies that do not reward you fairly for your efforts.

5. Again, read the fine print. Are there minimum quotas you need to meet that may be to hard to achieve.

6. Does the MLM Company offer your sales training and resources to help you grow your business?

7. Online MLM should be able to offer you a proven system and a reliable tracking mechanism.

8. Does the company offer strong incentives for members to renew their membership? A company that provides help and upgrades for its product and business will tend to retain its members and will ensure growth of your network.

The internet has opened a completely new world for multi-level marketing. With hard work, persistence, and patience, you MLM business can grow locally in your community and across the globe via the internet.

For a MLM company that you can be proud to be a member of go to Shaklee