Walter Mulder | walterm
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What is MLM

Sep 21st 2010 at 7:11 PM

My favorite question in Swom‘s Open University yesterday was “anyone who can help me learn abount mlm?” Here’s my take on it:

MLM stands for Multi Level Marketing

People confuse MLM opportunities with pyramid schemes most of the time. The main reason for this is that in both of these an individual has to earn money by introducing others into the business. But in MLM there are actual goods which you have to sell and there is actual money that you could make. In MLM the people that a person brings into the business is like a extra income, their main source of income.

Usually people sign up for MLM opportunities under somebody else who is operating the MLM business. What actually happens is that, every sale that a person makes, the individual who they were signed up under will get a commission. To understand this easily, look at this example:

Person B signs up under Person A. Person B sells 100 goods. Person B gets a commission on their sales and Person A even gets a commission on the sales.

In addition, when Person B signs up people under him, Person A gets a commission of their sales. So it is like this:

Person B signs up Person c. Person C makes 100 sales. Person C, Person B and Person A all get a commission on Person C’s sales. This can continue on as each individual signs up new people under them and make sales. Al this would trickle up the MLM ladder to the very first individual, which is person A with everyone else, getting their commission along the way.

Legitimate MLM opportunities are mainly focused on selling products and they would also be proving training to the individuals on how they could sell the products and increase their business and they also provide extra resources to people to help them sell goods to others. They’ll even provide members with the option to sign up new members, but normally this is optional and it is not mandatory to make cash.

When a person is looking for MLM opportunities, they have to understand the difference between what a MLM opportunity is and what a pyramid scheme is. They may both look the same on the surface but they’re totally different. With legit MLM opportunities you’ll be able to make a lot of cash until there is a demand for the product you are selling in the market.

You can find several MLM opportunities today, but until you have the necessary training you will have a good chance of failing. Browse MLM-Friends.com to find out how you can succeed in your MLM business.

I myself am very careful with joining MLM opportunities and always try the products myself too. On my profile is one MLM company that has a product in pre-launch and as I’ve tested the product I know it will sell. But always make sure you go for the opportunity, not the income.”

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A great new MLM opportunity is GVO conference which is about to go in pre-launch. Check it out here

3 comments
Please to comment
Nov 9th 2013 at 6:49 AM by marty
thx for sharing
   
Nov 10th 2010 at 1:51 AM by ecco1729
I agree, often I have to start a presentation by explaining the difference between MLM and pyramid schemes.
   
Sep 26th 2010 at 5:04 AM by TimRR
Great article and a great company you have listed here
   

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