MLM – what is it? A successful business or a Scam?

In the key search engines next to the abbreviation MLM often meet the words such as Scam, pyramid, divorce, and even a sect. And this is connected primarily with people misunderstanding the essence of this business. Many believe that this is a common Ponzi scheme, where money is going “up” and are deposited in Bank accounts of the organizers. Especially in the recent history of such “scheme” really worked, and many of them have lost their life savings. However, such pyramids do not exist for a long time, and some MLM companies thrive for decades. Many "networkers" working for them, achieve what cannot be achieved on the job – financial independence.

How indeed? MLM – what is it? Let's start with the fact that this abbreviation comes from the English MLM, which stands for "multilevel marketing". That is, multilevel marketing. And marketing is in essence – the management of the organization. And this concept includes trade policy, pricing, promotional activities, market research, public relations and more. So MLM – one of the ways of business management. And the essence of it is that the distributors here do not only sell goods to your company, but also attract new distributors. The "NetWorker" MLM do not do it for free. They get a percentage of their personal sales and bonuses on turnover their invited team.

If ‘dig deeper" by referring to the history, we can see, as a born MLM industry, what kind of business. It all began in 1927, when Carl Rehnborg based on alfalfa has created a nutritional Supplement. And start quickly enough to spread only through the “word of mouth”. That is Rehnborg talked about their supplements and friends, they in turn shared the information with their friends. And this whole process has reached the point that Carl just did not have time to respond to requests everyone to purchase his product. And then he had a brilliant idea. He invited his friends to not only tell people about these supplements and sell them, receiving their commissions. He then decided to pay the following lines distributors, having built the first in the history of the MLM network.

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What is this business and what benefits it brings, and soon realized other people. Sam Rehnborg in 1934 he founded a company called “California Vitamins», which in 1939 became known as the “Nutrilite Products”. And it worked by such staff as Jay van Endel and rich De Vos. And they get experience, in 1959 organized their own brand, calling it “American Way Corporation” or “AMWAY". And now it is one of the largest and most prosperous companies.

But nowadays, many scammers are trying to pull their Scam under the name of MLM. What it gives them? Yes legal cover for his dishonest activities. And many people losing their money and time to give up on network marketing in General. And in order to avoid this, you need to choose the right MLM company. And this created a Direct selling Association, which includes only proven ones. This Association has a website, and information about its members available to all. So before you make a choice of the network company, it is well worth visiting. Then the chances of success in MLM business will increase significantly.