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Multi-level marketing - Wikipedia, the free encyclopedia (622 words) |
 | Multi-level marketing (MLM) (also called network marketing or NM) is a business model that combines direct marketing with franchising. |
| In a typical multi-level marketing arrangement, individuals associate with a parent company as an independent contractor and are compensated based on their sales of products or service, as well as sales by those they bring into the business. |
| In a legitimate MLM company, commissions are earned only on sales to the end-user, who is often also a distributor. |
| Multi-Level Marketing (MLM) (2261 words) |
| One of the biggest problems of MLM is that they are marketed to people who are down-and-out and desperate, and who can ill-afford to lose their money by purchasing memberships in these bogus programs. |
| The promise of MLM is that if you are "successful" (in defrauding others) that you will create this big "downline", i.e., multiple layers of sellers under you, which will quickly lead you to riches and allow you to retire forever with a never-ending stream of seven- or eight-figure revenue. |
| To the extent MLM programs sell any product, it is usually purchased by people who -- frustrated by their ability to build a downline and pressured by their recruiters -- will themselves buy mass quantities of the product as an attempted badge of "success". |
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