| |
The Multi-level Marketing (MLM) trap
By Michael Sanford
In the search for the quickest way to get rich, many people fall prey with promise of easy money. One example is the idea of multi-level marketing (MLM). Multi-level marketing (MLM) is also known as network marketing and referral marketing. MLM is easy enough to understand. Imagine you have a product to sell. A common MLM product is a vitamin or mineral supplement. You could do what most businesses do: either sell it directly to consumers or find others who will buy your product from you and sell it to other people. MLM schemes require that you recruit people not only to buy and sell your product, but who will also recruit people who will not only buy and sell your product but also recruit people thus perpetuating a never-ending cycle. Only there is an end to the supposed self-sustaining business practice of MLM.
If MLM sounds too good to be true, then maybe it is. Most traditional business people would never consider such a venture. Why would you recruit people to compete with you? Isn't that what you are doing when you recruit people to sell the same products you are selling? The MLM lure will convince you that it is reasonable to recruit competitors because they won't really be competitors since you will get a cut of their profits. This will take your mind off the fact that no matter how big your town or market, your possible recruits will never be exhausted. But the well will go dry soon enough.
Multi-level marketing (MLM) is system of marketing which puts more emphasis upon the recruiting of distributors than on the selling of products. MLM is very attractive, however, because it sells hope and appears to be outside the mainstream of business as usual. It promises wealth and independence to all. Unfortunately, no matter what the product, MLM is doomed to produce more failures than successes. For every MLM distributor who makes a decent living or even a decent supplemental income, there are at least ten who do little more than buy products and promotional materials, costing them much more than they will ever earn as an MLM agent. There will always be some MLM distributors who will make money in an MLM scheme. The majority, however, will fail due to the nature of all pyramid schemes.
A pyramid scheme is a fraudulent system of making money, which requires an endless stream of recruits for success. Recruits (a) give money to recruiters and (b) enlist fresh recruits to give them money. A pyramid scheme is called a pyramid scheme because of the shape of a pyramid: a three dimensional triangle. If a pyramid were started by a human being at the top with just 10 people beneath him, and 100 beneath them, and 1000 beneath them, etc., the pyramid would involve everyone on earth in just ten layers of people with one con man on top. The difference between a pyramid scheme and MLM marketing is that the latter is a legal business practice. A pyramid scheme does not sell any product and only requires a monetary investment from the down line for them to succeed.
MLM only benefits the company because the more recruits they get, the more money they receive from their share of the down line's recruits. Aside from that, the costs that these recruits spend on are not covered by the MLM company. In the end, they lose more money than earn it.
About the Author
To avoid the MLM trap and find a real home business goto the top rated home business resource guide
Article Source: http://www.simplysearch4it.com/article/6967.html
| If you wish to add the above article to your website or newsletters then please include the "Article Source: http://www.simplysearch4it.com/article/6967.html" as shown above and make it hyperlinked. |
| Some other articles by Michael Sanford | Home Improvement
Home Improvement is an art that most women have
imbibed in them. Home Improvement increases the worth
of the family residing in ...
Home Security
Installing a home security system is becoming increasingly
popular and easy for most do it yourselfers while saving
money. Some home security companies require a three
year contract trapping home owners in.
More ...
Car alarm - attempt to discourage theft of car
A car alarm is a device installed in a car in an attempt to
discourage theft of that car. Most alarms work by making a
loud sound. Other alarms disable ...
Know Much more about Candles
A candle is a light source usually consisting of an internal
wick which rises through the center of a column of solid
fuel. Typically ...
Create high-quality images with Digital cameras
Digital cameras have recently grown in popularity because
of their increasing image quality and easy interaction with
desktop PCs. ...
DVD and DVD players
DVD Player - This is a generic term, since there are DVD-
Audio, DVD-ROM, DVD-Video players--while DVD-
Recordable and DVD-RAM drives are not ...
|
|
| |
|
|
|
