The truth of MLM

MLM (Multi-Level Marketing) also known as network marketing arrangements started around forty years ago during 1970.MLM is a business scheme where individuals work as independent contractors or franchisees for a particular parent company. These individuals get commissions on their sales in addition to the sales of the persons they have recruited for the same company.But there are some non-legitimate companies lure prospective clients on the basis of the number of persons they have recruited to work for the company.These companies are fraudulent abound the industry. MLM system is not fast and easy income as some people claim.One should be wary of the promises offered by any MLM company and careful not to believe so easily. There are also MLM businesses promises to be very profitable.Here are some of these promises MLM companies commonly offer :

1-    Earning huge profits in MLM as compared to traditional ways of doing business .

In fact, not all MLM investors can earn huge profits from the scheme and fewer people hardly get a sustainable living from the MLM business. Marketing obstacles and extraordinary sales are the most common problems in MLM business MLM growth is limited by the exponential increase of new enrollees.For example, one needs a downline of 1,000 individuals to earn a decent living. The 1,000 individuals need one million more individuals to achieve the same success. The profits and earnings of the real achievers in the MLM business come from the permanent supply of enrollees who would finally become losers in the business.

  2-  Success in the MLM business is guaranteed and easy.

  One can have his relatives and friends as lifetime customers.   Nowadays commercialization of personal relationship is completely a marketing tendency but is destructive to one’s social foundations.

     3-   MLM business can be achieved during leisure.  

      Only two hours a week devoted to MLM can generate income will make other work unneeded. But the truth is that engaging in the MLM business needs personal skills, persistence, and extra time commitment. It requires more efforts from a person. Every time is suitable for marketing process and everyone is a potential client.

     4-  MLM is not a form of pyramid scheme .   

    The legality of MLM is set by State Attorneys General and the Federal Trade Commission. According to statistics of the largest MLM, only 18% of the goods are purchased by non-distributor. But according to the court rulings at least 70% of the goods sold by an MLM company must be bought by non-distributors.

There are many common lies told by MLM companies to attract more distributors. Working in an MLM business is not a problem, but beware of he deceitful companies and make sure that one does not get fooled to do so.