Multi Level Marketing (MLM) The Pyramid myth and other misunderstandings

Multi Level Marketing (MLM)The Pyramid myth and other misunderstandings

By Ted Nuyten - The Netherlands - www.businessforhome.org

Is MLM or Network marketing a Scam?Madoff


Short answer ..If MLM or Network Marketing is a pyramid scam, 67 million people worldwide, would be in prison .


Long answer!Network marketing and Multi Level compensation plans were declared legal ways of compensation over 50 years ago:


Direct Selling Organisation (DSA)67 million Direct Sellers95% has a MLM compensation plan$110 billion revenue worldwide


Direct Selling SupportersBill Clinton - Former USA PresidentTony Blair Former UK Prime MinisterMichael Gorbatsjov Former USSR President


DSA Facts & FiguresUSA is the largest market, 15 million distributors, $30 billion revenue


Misunderstanding:Only the top make moneyThere are numerous examples of distributors who make more money then people who joined earlier


Why?If it would be not possible to earn more then your up-line, nobody would join an opportunity.


An other way to explain this misunderstandingIf you introduce a Top Earner you could make a small fortune.. The Top Earner will earn more, but you can receive a % over his or her earnings.


Misunderstanding:You have to be broke to startSome people are broke, however people from all walk of life join Direct SellingMillionaires, Actors, Doctors, business men, stay home moms and many others..The start up costs are often between $25- $500, a small investment to start a great business.


Fact: The average Top Earner IncomeThe average Top Earner make approx. $ 25.000 a month / $ 300,000 a year.

There are over 5,600 people who make a full time year income ($60.000+) with Direct Selling

Source: www.businessforhome.org


Fact: Newbies often introduce Top EarnersThe majority of Top Earners are introduced by rookies. People with no experience in direct selling!


Where is the money coming from?The majority of the revenue in Direct Selling (80%+) is coming from customer orders. People who only want the product.Its obvious that a customer will not be rewarded as a networker.Customer revenue is put into a networkers pool and is rewarded to networkers who build up an Direct Selling organization.


A few MLM Celibrities.AC Milan, Boston Red Sox, Phoenix Suns, Inter Milan, and many more endorse MLM products


Success!


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Multi Level Marketing (MLM) The Pyramid myth and other misunderstandings