subject: MLM Or Pyramid Scheme? [print this page] MLM stands for Multi-Level-MarketingMLM stands for Multi-Level-Marketing. Such a program starts with a product or service to sell, yet the way to grow your smallbusiness is to build a network. If you enlist 3 friends, you receive a percentage of their sales. If they each enlist 3 friends, you are now receiving a percentage of sales from 12 people (the original 3, plus the 9 they brought on).
There are plenty of articles online that will educate you on what to look for in an MLM. A simple search for "What is an MLM?" in Google will probably yield enough results in the first two pages to give you most of what you need. One of my favorite resources is the About web site, which has lists of relevant articles under the Entrepreneur section. For starters, check out "Too Good To Be True?" by About contributor Scott Allen, which defines 6 criteria you should look for in an MLM. While there, peruse around for more valuable resources.
Most information you will find will heed the warnings of multi-level-marketing. A few to review are at a web site called MLM The-Truth. And with good reason. There's a standard pitch that seems to can prey on what everyone looks for in an opportunity - no selling, unlimited potential, free time to enjoy your new boat.
However, don't think that all MLM opportunities are ones to stay away from. There have been many companies that implemented this structure and were very successful in doing so. Two examples are Avon and Mary Kay. The best test is to ask yourself if the product or service on its own appears to be valuable and profitable. In other words, do you feel confident in thesmallbusiness of selling the product or service alone without creating a network? If not, then you should dig deeper into its potential.
