subject: Define Multi Level Marketing For Success [print this page] Network marketing has been around for a while, longer than most think. Who started it all, can you guess which company? If you said "Amway" that's the wrong answer. You will have to look further back. Did you say "NutraLite"? You guessed wrong, you need to go back even further. It was a sea vegetable supplement company named Wachter's. It was the started in 1932, during the Great Depression of the 1930's. (NutraLite started in the 1940's).
There are many who define multi level marketing as a illegal endeavor and others who define it as a credible business. Today there are thousands of MLM companies and new ones pop up every day. Network marketing has been adopted as a "direct selling" company and many companies pride themselves as members of The Direct Sellers Association.
People more often than not will define multi level marketing based on their own personal experience. Reluctantly because most people lack the training to become successful have a poor definition. Here is how Wikipedia defines it:
"Multi-level marketing (MLM) is a marketing gameplan in which the sales force is compensated not only for sales they personally generate, but also for the sales of others they recruit, creating a team of distributors and a hierarchy of multiple levels of earnings."
Many define multi level marketing as the great equalizer, meaning that you don't have to have a "proven" background, education or franchise size fee's to become involved. This is certainly true when you begin to recognize many of the more famous companies that are out there. Some of the best-known companies in U.S.A, including Avon, Mary Kay Cosmetics and Tupperware, fall under the network marketing umbrella.
Network marketing programs feature a low upfront sign up fee--usually one hundred to three hundred dollars for the purchase of a product sample kit--and the opportunity to sell a product line directly to friend, family and other personal contacts.
Govermental authorities like the FTC, warns people in how they define multi level marketing , especially when a network marketing network compensates participants primarily for signing up others others rather than for selling the company's products or services. A network marketing system in which most of the revenue comes from recruitment may be considered an illegal pyramid scheme.
Bottom line, do your due diligence. Don't simply take your friends word without doing your own checking. Define multi level marketing out of your own research and experience. Make sure they are established and have a proven history. And look for systems that can help you learn about this industry and jump start your business.
